Thailand’s base oils output rebounded to a four-month high in December following the completion of a heavy round of plant maintenance work during the previous two months.The recovery in output failed to trigger a major rebound in Thailand's base oils exports amid an initial focus on replenishing depleted stocks.Overseas demand has held firm for Group I bright stock especially amid a revival in buying interest from China and a sustained slump in exports of the heavy-grade product from Indonesia.A drop in Thailand’s base oils imports from key sources like South Korea and especially Japan also increased requirements from buyers in the domestic market.The prospect of firmer domestic demand could continue amid signs that the prolonged fall in shipments from Japan reflects a structural drop in its supply rather than a temporary slowdown..Japan's Dec base oils exports improve.Thailand’s base oils output of 59,640 kilolitres (52,830t) in December more than doubled from less than 26,000kl in October and in November, government data showed.Output rebounded at both of Thailand’s two Group I base oils plants. Production at IRPC’s 320,000 t/yr unit rose to more than 34,500kl in December, from less than 5,000 kl/month during the previous two months..The slump in output had been especially steep in October and November because of the overlapping timing of the shutdowns of the two plants. Their maintenance work usually takes place at different times.Base oils output of 610,510kl in 2022 fell by 14pc from 706,960kl the previous year to the lowest in more than a decade. The fall in Thailand’s output in the fourth quarter of the year added to a regionwide drop in supply that partially balanced out muted demand in markets like China and India, except for bright stock.The tighter supply of bright stock supported its price strength relative to other base oils grades during the final months of last year.The product maintained a wide premium to other grades during the first few weeks of this year.The rise in Thailand's base oils output should help to meet a seasonal pick-up in demand in the region and especially in China over the coming months. .Asia’s Nov base oils supply stays low
