Thailand’s base oils supply fell in April amid a simultaneous dip in domestic production and imports.Total Group I base oils output of 50,950 kilolitres (45,100 tonnes) in April fell from more than 56,000 kilolitres the previous month, government data showed.The slowdown added to unusually-low output volumes of less than 43,000 kilolitres in January and in February, when plant maintenance work cut production levels.Thailand’s lower production coincided with a sustained slump in Japan’s base oils exports.The slowdown curbed surplus availability of Group I base oils supplies in the Asia-Pacific region and for more distant markets.Asia’s Group I base oils cargo prices extended their rise relative to feedstock and gasoil prices in April and May, reflecting the tight supply fundamentals.The region’s Group I brightstock prices lagged the sharp rise in Europe’s prices for the heavy-grade product so far in the second quarter of the year.The premium of domestic Europe brightstock prices over Asia cargo prices duly rose in May to its widest in four months. But it remained narrower than last year.The still-narrow price spread, combined with Asia's limited surplus availability, curbed the region’s ability to move any shipments to Europe.Thailand’s base oils imports also fell in April, adding to the dip in domestic supply.Imports of less than 26,500 kilolitres in April fell from more than 30,000 kilolitres the previous month.Imports slowed mostly because of a slump in shipments from South Korea to a six-month low.The drop in supplies from South Korea coincided with the shutdown of a key Group III base oils unit in the northeast Asia country throughout most of the month of April.The plant restarted in late-April, raising the prospect of a recovery in Thailand’s base oils imports from South Korea in the month of May.Thailand’s total supply, or domestic production and imports combined, duly fell to 77,200 kilolitres in April, down from 87,400 kilolitres the previous month..S Korea’s April base oils exports fall.Singapore’s April base oils exports rise.Base Oil News stories and analysis also available on ICIS platform
