Vietnam’s April base oil imports slip

Vietnam’s base oil imports slowed in April, pausing after a sustained surge in shipments over the previous five months.

Total base oil imports of 16,620t in April fell by almost half from a more-than two year high of 31,210t the previous month, provisional customs data showed.

Even with the slowdown, imports of 81,720t in the first four months of the year were up 31pc from 62,490t during the same period a year earlier.

Vietnam’s base oil imports have rebounded since the fourth quarter of last year following the relaxation of Covid-19 restrictions in the country.

The resumption of more typical economic and travel triggered a strong revival in economic and industrial growth.

The country’s automobile sales rose in April for a fourth straight month and by more than 40pc from year-earlier levels. Industrial production rose in May for a seventh month.

The rebound in Vietnam's base oils demand mirrored a similar trend in other countries in the region.

The pick-up in consumption in southeast Asia has attracted a larger-than-usual volume of shipments from key suppliers like South Korea and Singapore.

The stronger consumption has partially countered the slowdown in demand from China.

Even with the firm buying interest, base oil producers in Asia-Pacific have still had regular surplus shipments that they have sought to move to more distant markets like Latin America.

Supplies from South Korea accounted for more than 40pc of Vietnam’s total imports in the first four months of the year, up from a 32pc share in all of 2021.

The higher share reflected the extent to which South Korean supplies accounted for almost all of the rise in shipments to Vietnam this year.