Pakistan’s base oils supply fell in May, correcting lower after a surge in volumes the previous month.Supply continued to trend higher this year, even with the slowdown in May, as a steady rise in imports more than outweighed lower domestic base oils production.The trend highlighted the growing importance and market share of base oils imports.It also highlighted the attraction for overseas refiners to boost their share of Pakistan’s growing imports.South Korea was the key beneficiary of that trend in recent years as its share of Pakistan’s imports surged.The dynamic reversed this year as a surge in shipments from Singapore boosted sharply its share of Pakistan’s imports.China's increasing base oils self-sufficiency, and the prospect of a similar trend in India, increased the importance of markets like Pakistan for key suppliers like Singapore and South Korea.The country’s unusually large requirements for Group II heavy grades added to its attraction.Pakistan’s total supply, or domestic production and imports combined, came to 27,400 tonnes in May, industry and customs data showed.The volume fell from a two-year high of around 47,000 tonnes the previous month.Even with the slowdown, imports of more than 110,000 tonnes in the first five months of the year were up 15% from year-earlier levels.Domestic production of around 53,000 tonnes in the first five months of the year by contrast fell by 3% from year-earlier levels.The trend highlighted the growing volume of imports as a share of Pakistan’s total supply.Imports of Group II heavy grades accounted for more than 60% of Pakistan’s imports in May and some 52% of the total in the first five months of the year.The share was up from 50% last year and less than 35% in 2022.The premium of Asia Group II heavy-grade prices over light grades widened sharply so far this year.The widening premium added to the attraction for regional refiners to maximise output and sales of the heavy-grade product..Singapore’s May base oils exports rise.S Korea’s May base oils exports rise.India’s May base oils imports rise
Pakistan’s base oils supply fell in May, correcting lower after a surge in volumes the previous month.Supply continued to trend higher this year, even with the slowdown in May, as a steady rise in imports more than outweighed lower domestic base oils production.The trend highlighted the growing importance and market share of base oils imports.It also highlighted the attraction for overseas refiners to boost their share of Pakistan’s growing imports.South Korea was the key beneficiary of that trend in recent years as its share of Pakistan’s imports surged.The dynamic reversed this year as a surge in shipments from Singapore boosted sharply its share of Pakistan’s imports.China's increasing base oils self-sufficiency, and the prospect of a similar trend in India, increased the importance of markets like Pakistan for key suppliers like Singapore and South Korea.The country’s unusually large requirements for Group II heavy grades added to its attraction.Pakistan’s total supply, or domestic production and imports combined, came to 27,400 tonnes in May, industry and customs data showed.The volume fell from a two-year high of around 47,000 tonnes the previous month.Even with the slowdown, imports of more than 110,000 tonnes in the first five months of the year were up 15% from year-earlier levels.Domestic production of around 53,000 tonnes in the first five months of the year by contrast fell by 3% from year-earlier levels.The trend highlighted the growing volume of imports as a share of Pakistan’s total supply.Imports of Group II heavy grades accounted for more than 60% of Pakistan’s imports in May and some 52% of the total in the first five months of the year.The share was up from 50% last year and less than 35% in 2022.The premium of Asia Group II heavy-grade prices over light grades widened sharply so far this year.The widening premium added to the attraction for regional refiners to maximise output and sales of the heavy-grade product..Singapore’s May base oils exports rise.S Korea’s May base oils exports rise.India’s May base oils imports rise