Vietnam’s May base oil imports fall

Vietnam’s base oil imports fell in May to a seven-month low, mirroring a similar trend in other countries in the region.

Imports of 14,330t in May fell from 16,620t the previous month to the lowest since last October, provisional customs data showed.

The slowdown left imports of 96,050t in the first five months of the year up 4pc from 92,960t during the same period last year.

Imports had been 45pc higher than year-earlier levels at the end of the first quarter of the year.

Base oil imports slowed in April and May despite signs of firm economic growth that is expected to continue through the rest of the year.

Vietnam’s automobile sales have been rising strongly since the start of the year.

The country’s industrial production rose in June for an eighth month and at its fastest pace in more than a year. The purchasing manufacturers’ index remained strong in June even as it edged down slightly from a 13-month high in May.

Strong demand and a drop in base oil imports suggested the slowdown was more because of external factors.

Plant maintenance work in South Korea from late April curbed supply from that market. Vietnam’s imports from the country fell in May to an eight-month low.

Imports from Thailand fell to less than 260t in May, even as the country’s total base oil exports rose that month.

The trend suggested that buyers in more distant markets like Mideast Gulf were more willing to pay higher prices for these supplies than buyers in southeast Asia.