Monthly analysis of Asian base oil in October, 2020
At the beginning of the month, due to the week-long holiday in most of Northeast Asia (China, Taiwan and South Korea), market negotiations were light. Due to the turnover of a South Korean factory, Northeast Asia class II oil products will continue to be limited in October. Another Taiwan refinery has just resumed production since August shutdown for maintenance. In the Indian market, buyers are cautious about South Korea’s supply quotation, but buyers in urgent need will continue to book from limited suppliers and ensure the quantity. Due to the long holidays in North Asia, including China, Taiwan and South Korea, the FOB and CFR prices of class I base oil are stable and the trade is light. The spot shortage of class I base oil in Japan and Southeast Asia continued, while the purchase intention was low due to the uncertainty of global economy. The prices of 50N and 500 / 600N base oils of class I remained stable, and negotiations were rare. The spot supply of refineries in South Korea and Taiwan was limited in October. Due to the shortage of supply from Asia, the Middle East and the United States, as well as the shortage of domestic supply due to the influence of a local Indian refinery, buyers tend to accept the price of base oil with price increase to maintain stability, while the negotiation on South Korea’s supply is cold. At the end of the month, due to the continuous shortage of supply due to the round inspection and production reduction of class 1 base oil refineries in Japan and Southeast Asia, the FOB price of class I base oil in Asia was stable and firm, The negotiation on goods to Southeast Asia and India went up. Due to the relatively optimistic market outside China, especially in Southeast Asia and India, the prices of 150n and 500 / 600nfob base oils in Northeast Asia are stable and firm. Due to the recent decline in refinery round inspection and overall output, the spot supply of class II base oil in Taiwan and South Korea, the main production areas of Northeast Asia, is limited. In the Indian market, supply from Asia, the Middle East and the United States continued to be depressed, as buyers were forced to accept price increases due to the shortage of goods. A local refinery in India is in the process of inspection, which has once again made the supply situation worse, and the interest in buying has increased compared with the price surge a few months ago. The price of class II base oil is stable, and the negotiation on South Korea’s supply is quiet.