China April base oils imports up, signs of slowing in May/June

01 June 2010 07:31  [Source: ICIS news]

SINGAPORE (ICIS news)--China imported a total of 253,000 tonnes of base oils in April, some 10% higher than March, though traders said on Tuesday that the strong domestic demand seen in the last four months may soon be tapering off.

Of that total shipments of base oil, around 64,000 tonnes – or 25% – came from Singapore, 22% from Taiwan and 19% from Japan, according to the import and export statistics released by Chinese customs late last week.

Korean base oils accounted for some 16% of imports while Russian cargoes made up 10% of import volumes.

The total amount of imports for the first four months of 2010 stood at around 820,000 tonnes – a big jump from the 528,000 tonnes imported in the same period last year when imports had plunged on the back of the global economic crisis.

“Strong Chinese base oils demand during the first four months [of] this year was driving the global base oils business while US demand remained flat, but now as Chinese [base oils] demand is tapering off, it seems the tight supply in the US is supporting base oils demand and pricing," a base oils seller in Asia said.

May import figures will be lower than April, and imports for June have also got off to a slow start as Chinese base oils inventories remained high.

Buying had also slowed down amid widespread expectations that prices would eventually correct downwards – in line with lower crude values, said several buyers and sellers.

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By: Anu Agarwal
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