Vietnam's Feb base oil imports steady

Vietnam’s base oils imports held steady in February as a rise in shipments from South Korea countered a slowdown in supplies from Singapore.

The steady flows added to signs of still-firm base oils demand in southeast Asia even in the face of higher interest rates and weaker global economic growth.

Firm demand in the region coincided with a gradual pick-up in China’s base oils requirements after the country scrapped of its zero-Covid policy at end-2022.

The pick-up in shipments to Vietnam from South Korea especially suggested that supply remained sufficient to cover steady-to-firm demand in both regions.

Vietnam’s base oils imports of little more than 15,650t in February edged down from around 16,000t the previous month, provisional customs data showed.

The volume fell from year-earlier levels for a fifth month.

The slowdown partly reflected the high year-earlier base levels when economic growth rebounded after the removal of Covid-related restrictions.

The drop in requirements also coincided with a slowdown in Vietnam’s economic growth in recent months.

The country’s industrial production fell in March for the second time in three months. Car sales began to fall late last year, before sliding 25pc in the first two months of 2023.

Vietnam’s base oils imports from South Korea rose in February to a five-month high of more than 10,000t.

The higher shipments contrasted with a fall in imports from Singapore to a sixteen-month low of less than 5,000t.

Singapore is typically Vietnam’s largest source of base oils.

The island-state’s base oils exports to southeast Asia rose to a seven-month high in February.

The increase mostly reflected a surge in shipments to Indonesia that far outweighed a slowdown in its exports to Vietnam.

Singapore’s exports to Vietnam showed signs of rising in March.