Thailand’s base oils supply held firm in November, with domestic Group I base oils output holding at more elevated levels.Thailand’s base oils output of 59,700 kilolitres (53,000 tonnes) in November edged down from 60,700 kilolitres the previous month, government data showed.The November volume was still the third highest in twenty months and up from average levels of less than 50,000 kilolitres/month in the first half of last year.The highest and second-highest output levels were in July and October, reflecting a sharp rise in production from the start of the second half of last year.The higher production coincided with increasingly firm Asia Group I brightstock margins, also from the start of the second half of last year.The unusually high margins incentivized refiners to boost output of the heavy-grade product.Higher output coincided with a surge in Thailand’s base oils import volumes throughout last year, boosting their share of the country’s own base oils requirements.The trend freed up more Group I supplies for shipment to overseas markets at a time when a wave of plant closures in Asia tightened regional availability of the base oil grade.The plant closures in turn increased the importance of Group I supplies, and especially brightstock, from Thailand.The growing importance of Thailand’s Group I base oils production in turn magnified the impact of any change in the country’s supplies caused by factors such as plant maintenance work.Thailand’s base oils imports held firm in November, adding to widespread signs throughout Asia of blenders’ increasing consumption of premium-grade base oils instead of Group I supplies.Asia’s high Group I brightstock margins reflected the more limited ability to replace that product with premium-grade supplies.Thailand’s imports got support from a pick-up in shipments from South Korea to a three-month high.A dip in imports from South Korea during the previous two months coincided with maintenance work on a key Group II base oils unit in the northeast Asian country.The maintenance ended at end-October..Japan’s Nov supply exceeds demand.Thailand’s Oct base oils supply rises
