Thailand’s base oils supply fell to a fifteen-month low in February as a dip in imports compounded lower-than-usual base oils production.The lower supply in February extended a trend throughout Asia, where base oils output or exports fell everywhere from South Korea and Japan to Singapore and India.Lower regional supply preceded a seasonal rise in demand in the month of March.Asia’s base oils prices reflected the tighter supply-demand fundamentals.Prices rose relative to regional gasoil prices and relative to prices in other regions during the first quarter of the year, ICIS data showed.Asia’s Group I base oils supply was likely to stay tight even after Thailand’s base oils output returns to normal because of the structural drop in base oils production in Japan since late last year.Thailand’s base oils output of 42,700 kilolitres (37,800 tonnes) in February edged up from 40,500 kilolitres the previous month, government data showed.It was still the second-lowest in fifteen months and down from average levels of close to 55,000 kilolitres/month in 2023.Output fell in the first two months of the year because of plant maintenance affecting both of Thailand’s Group I base oils plants.Thai Lube’s base oils output reverted to more typical levels of more than 19,000 kilolitres in February, from close to 12,100 kilolitres the previous month.Rival IRPC’s base oils output dipped further in February to a fifteen-month low.Thailand’s base oils imports fell to a four-month low in February, compounding the drop in supply.The slowdown mostly reflected a slide in shipments from South Korea and a drop in flows from Malaysia.The lower imports from Malaysia coincided with the shutdown of the country’s Group III base oils unit for scheduled maintenance work during most of the first quarter of the year..Japan’s February base oils output falls
Thailand’s base oils supply fell to a fifteen-month low in February as a dip in imports compounded lower-than-usual base oils production.The lower supply in February extended a trend throughout Asia, where base oils output or exports fell everywhere from South Korea and Japan to Singapore and India.Lower regional supply preceded a seasonal rise in demand in the month of March.Asia’s base oils prices reflected the tighter supply-demand fundamentals.Prices rose relative to regional gasoil prices and relative to prices in other regions during the first quarter of the year, ICIS data showed.Asia’s Group I base oils supply was likely to stay tight even after Thailand’s base oils output returns to normal because of the structural drop in base oils production in Japan since late last year.Thailand’s base oils output of 42,700 kilolitres (37,800 tonnes) in February edged up from 40,500 kilolitres the previous month, government data showed.It was still the second-lowest in fifteen months and down from average levels of close to 55,000 kilolitres/month in 2023.Output fell in the first two months of the year because of plant maintenance affecting both of Thailand’s Group I base oils plants.Thai Lube’s base oils output reverted to more typical levels of more than 19,000 kilolitres in February, from close to 12,100 kilolitres the previous month.Rival IRPC’s base oils output dipped further in February to a fifteen-month low.Thailand’s base oils imports fell to a four-month low in February, compounding the drop in supply.The slowdown mostly reflected a slide in shipments from South Korea and a drop in flows from Malaysia.The lower imports from Malaysia coincided with the shutdown of the country’s Group III base oils unit for scheduled maintenance work during most of the first quarter of the year..Japan’s February base oils output falls
