Thailand’s January base oil exports fall

Thailand’s base oil exports fell in January to a three-month low ahead of planned plant maintenance work in the first quarter of the year.

But base oil shipments to China rebounded to their highest in more than three years.

Total base oil exports of 16,100 kilolitres (14,260t) in January dipped from more than 22,800kl in each of the previous two months.

Exports slowed amid a drop in surplus availability of Group I supplies. The country’s producers had boosted exports earlier in the second half of last year to clear a growing overhang of surplus volumes in the face of falling base oil prices.

More balanced supplies, the prospect of maintenance at one base oil plant in the first quarter and steadier prices from late last year then slowed producers’ need to clear more shipments.

The slowdown coincided with a rebound in Chinese demand for Group I bright stock.

Slumping domestic prices for the product late last year had deterred Chinese importers from seeking more supplies of bright stock. Steadier prices and the prospect of a seasonal pick-up in demand then triggered a rebound in buying interest.

Base oil exports of 12,470kl to China in January rose from less than 12,000kl combined in the three months to December. The January volume was the highest since end-2018.