Vietnam’s Sept base oils imports rise

Vietnam’s base oils imports rebounded in September to a six-month high, adding to signs of sustained demand in southeast Asia.

The rise in shipments mirrored Indonesia’s still-firm imports and highlighted the rise in regional lubricants demand to meet strong economic growth.

The flow of shipments from South Korea to Vietnam showed signs of slowing in October from unusually high levels in September.

Shipments from Singapore to the southeast Asian country also slowed in October and held at similar levels in November.

Singapore and South Korea typically account for around 85-90pc of Vietnam’s monthly imports.

Lower shipment volumes would tally with signs of a slower pace of economic growth in the fourth quarter of the year.

Vietnam’s base oils imports of 26,950t in September rose from 15,260t the previous month and more than threefold from the same month a year earlier, provisional customs data showed.

The surge in year-on-year shipments partly reflected an unusually low base level the same time a year earlier. The country faced lockdowns at that time to control the spread of the Covid-19 virus.

Base oils imports were high even without last year’s artificially low comparison. Third-quarter imports of 61,290t rose from less than 55,000t during the previous three months.

Imports rose from the second quarter even amid a seasonal slowdown in lube demand during the monsoon season and as economic growth slowed in a growing number of overseas markets.

Vietnam’s economy still grew in the third quarter at its fastest pace in more than 20 years. Its automobile sales rose in September to a four-month high, then extended that rise in October.

Signs of steadier Asia-Pacific base oils prices added to buyers’ incentive to secure more supplies. A slump in prices in July and August had prompted buyers to hold back.

The pace of Vietnam’s economic growth showed signs of slowing in the fourth quarter.

Industrial production rose in October for a twelfth month, but at its slowest pace since the start of the year.

Vietnam’s manufacturing purchasing managers’ index pointed to expansion in October, but at its slowest pace in 13 months.

South Korea was Vietnam’s largest base oils supplier in September. Imports from the northeast Asian country rose to almost 15,000t. The volume was the highest in more than two years.

South Korea’s exports to Vietnam mirrored a similar if less dramatic trend in September, with shipments rising to a six-month high. Its October shipments to Vietnam then fell by almost half from the previous month.