July base oil imports to China fell 14% from the same month of 2023 as domestic lubricant demand remained lukewarm and local refiners offer a surplus of supply.
The country imported 89,494 metric tons of base oil in July, according to recently published government data, down from 104,198 tons 12 months earlier. For the first half of this year, base oil imports amounted to 888,085 tons, down from 1.03 million tons in the same period of 2023.
South Korea, Singapore, Qatar and Taiwan were the main countries of origin for imports, combining to account for more than 90% of the total in July. Shipments from Singapore rose from 27,609 tons in July of 2023 to 30,233 tons, but the other three nations all experienced a drop-off. Imports from South Korea slid from 37,106 tons to 29,182 tons, while those from Qatar fell from 16,693 tons to 10,760 tons and Taiwan’s from 12,173 tons to 10,907 tons.
Through seven months this year, South Korea is still the leading source but is running 21% behind last year at 340,795 tons. Singapore is off by 16% at 249,068 tons, while Taiwan is down 11% at 119,620 tons. Shipments from Qatar are up 4% at 140,776 tons.
China is one of the world’s two largest finished lubricant markets and one of the world’s largest base oil importers, despite having the largest base oil manufacturing base. Domestic base oil refining capacity surged the past decade and now is significantly greater than domestic needs. Operators of newer capacity continue working to place their output, and many base oil plants run well below capacity.