ICIS provides unrivalled market intelligence for the evolving base oils market.
Updated to Q3 2020
Group I supply is expected to stay largely flat in Q3 as regional refiners including those in Japan and southeast Asia will likely keep their production at reduced rates. Strengthening crude and gasoil prices will likely also restrain refiners’ base oils output due to squeezed production margins.
Overall demand in Asia outside China is expected to improve as countries start to relax their lockdown restrictions, which were mostly imposed since March or April. Demand in India will likely pick up in August or September after the country’s monsoon season, while demand in China is expected to be stable.
Supply is expected to fall due to impending turnarounds at a South Korean refiner’s Group I and II units from August to September and a Taiwanese refiner’s Group II unit in July. Other key Group II refineries in South Korea and southeast Asia are also likely to continue running their units at reduced rates.
Overall demand in Asia outside China is expected to improve as most countries should have resumed normal business activities by then. India’s demand is likely to pick up speed from August or September with the end of the country’s monsoon season, while Chinese demand may retreat on renewed competition for lubricant exports from the US and Europe.
Supply in Q3 is expected to remain largely flat as the restart of UAE-based ADNOC’s facilities in late April will likely be offset by continued reduced output at other Group III refineries in northeast and southeast Asia. Refiners are facing immense cost pressure from strengthening crude and gasoil prices.
Overall demand in Asia outside China is expected to pick up as lockdown measures in most countries should ease in Q3. However, demand is unlikely to improve significantly due to concerns of a second wave of coronavirus infections as well as a global economic slowdown stemming from the pandemic.
We offer the following regional Base oils-Lubes analysis and news coverage to keep you informed of factors and developments affecting prices in the Base oils-Lubes marketplace.
News & analysis
ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.
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The main use for base oils is in the manufacture of lubricants, of which there are many thousands of types.
The Base Oils/Lubes Pricing report delivers daily and weekly price assessments, market news and analyses for the Asian base oils/lubes market. Whether you are a buyer, trader or seller, our pricing information gives you access to time-sensitive deals, offers/bids and price movements. Historical pricing data is also available.
Our report includes all of the following:
The report also includes trade flows and demand from the finished lubricants sector. Shipping and feedstock information completes the market coverage.
ICIS collects pricing data on a wide range of chemical, energy and fertilizer products, including Base oils-Lubes. Our extensive experience in price reporting means we can offer you access to historical data dating back more than 20 years for certain commodities.
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