China's base oil imports fell to a seven-month low in July, primarily due to slower-than-expected demand for lubricants feedstock, as well as lower buying interest in view of falling import prices, according to OilChem.
2022-2023 China Base Oil Imports
Source: GACC
Base oil imports stood at 104,000 tonnes in July, down 37.3% MoM while rising 18.7% YoY, data from the General Administration of Customs of China (GACC) showed. The volume was the lowest year-to-date.
Imports in the first seven months reached 1.14 million tonnes, down 4.9% from a year earlier, the customs data showed. This was because domestic blenders preferred to maintain low inventories during the off-season and to procure imported products on a need-to basis.
2019-2023 China Base Oil Imports
Source: GACC
Compared with previous years, base oil imports in the first seven months all presented an M-shape over 2020-2023, that is, the volume reached the highest during March and April, and dropped to a relatively low point in July after a rebound in June. A seasonal dip in demand at the start of the third quarter of the year, as well as falling prices, contributed to lower base oil imports in July.
May-July 2023 Base Oil Imports by Country of Origin
Source: GACC
For supplying countries, the imports from others countries and regions all reduced but Taiwan (China). Separately, the imports from South Korea topped other countries at 37,000 tonnes in July, slumping 52.2% compared to June, followed by Singapore with imports of 28,000 tonnes, down 30% MoM, while that from Taiwan (China) remained low for three consecutive months due to lack of import profit.
Written by Sunny Fang, fss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com