China imports record base oils volumes in April

27 May 2009 07:11  [Source: ICIS news]

SINGAPORE (ICIS news)--China imported a record 265,000 tonnes of base oils during April, around 80% higher than March and more than double the volume in April last year on high domestic demand, buyers and sellers said on Wednesday.

The April import volume was a record for any given month and had come after a huge drop at the start of this year due to the global economic slowdown, according to trade statistics released by China Customs on Tuesday.

The total volume for the first four months in 2009 had reached 528,000 tonnes.

The record automobile sales in China during April had spurred the demand for lubricants, some regional buyers and sellers said.

A brisk restocking was also seen in the Chinese market during April and early May as many buyers returned to the market to procure cargoes amid improved domestic sentiment, regional traders said.

Low operating rates of Chinese local refineries in March and April amid decreased demand for oil products and gasoline had also fuelled high base oils imports, a Chinese trader said.

The major sources for the April imports into China were South Korea - accounting for 27% of the imports, Singapore for 26%, Russia and Uzbekistan for around 21% and Japan for 7.5%. China had imported a total of around 1.37m tonnes of base oils in 2008.

Base oils are used for making automotive and industrial lubricants.

Key base oils producers in Asia include Exxon Mobil, Shell, SK Energy, S-Oil and Nippon Oil.

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By: Anu Agarwal
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