Singapore’s base oils exports recovered to more typical levels in January amid a pick-up in flows to China ahead of the lunar new year holidays.The island-state’s base oils imports extended their fall to the lowest in almost six years.Total base oils exports of close to 165,000t in January rose from around 147,000t the previous month, government data showed. The volume was closer to export levels in October and November.Southeast Asia remained the largest outlet for Singapore’s supplies for a second month even with a pick-up in shipments to China in recent months.The dynamic contrasted with typical flows before mid-2022, when exports to China and India typically accounted for a much larger share of Singapore’s shipments.The adjustment in trade flows cut Singapore’s reliance on China, where rising base oils production capacity and weaker demand has cut its import requirements.The adjustment also cushioned the island-state against any slowdown in flows to India, where a swathe of new base oils production capacity is set to come on line over the coming years.Singapore’s base oils imports of less than 23,000t in January fell from 38,300t the previous month.The December volume had been the lowest in almost two years.The January volume was the lowest since the beginning of 2018.Imports slowed because of a pause in shipments from Japan for a third month and a slump in flows from China.A pick-up in shipments from Europe in the fourth quarter cushioned the impact of the loss of supplies from Japan.The flows from Europe paused in January and so far in February.The drop in shipments added to the tight availability of Group I base oils in the Asia-Pacific market in the first quarter of the year..S Korea’s January exports stay higher
