China's base oil imports rose in November, supported by increased demand for replenishment cargoes at lower prices.
Total base oil imports rose in November to 176,841t, up by 52pc from the previous month. Shipments from South Korea rose by 50pc to 78,488t, imports from Singapore rose by 164pc to 41,779t and shipments from Taiwan rose by 124pc to 24,055t.
Supplies from Taiwan consisted of a large volume of Group II base oils, prices of which fell by as much as 500 yuan/t in November, pressured by slower seasonal demand and buyers' strong resistance. The falling prices prompted increased demand for supplies.
But the November imports were still around 3pc lower than year-earlier levels. China's base oil imports held low for most of 2021. January-November imports last year fell to an unusually low 2.1mn t, down by around 12pc from 2.4mn t for the same period in 2020.
The drop in imports throughout most of 2021 resulted in lower inventories in China. Many buyers cut consumption or instead secured alternative supplies from China's domestic producers.
