Singapore's May base oil imports rose to the highest level in 14 months because of increased demand for premium-grade base oils.
The city-state imported 81,000t of base oils during the month, 13pc higher than a year earlier and 40pc above month-ago levels, according to GTT data. The May receipts were also higher than the five-year average of 63,900 t/month.
There were more deliveries from premium-grade base oil producers Qatar and Taiwan, making up for lower than usual supplies from South Korea.
Imports from Qatar of 20,400t were nearly three times higher than a year earlier and more than triple month-ago levels. Qatar houses a major Group III producer with an output capacity of 1.1mn t/yr.
The higher imports from Qatar coincided with scheduled maintenance at a 41,000 b/d plant in Onsan, South Korea from June to mid-July.
This also prompted Singapore buyers to source more Group II products from Taiwan in May. Imports from Taiwan totalling 8,900t were over twice the volumes a year earlier and more than quadrupled from a month ago. These imports were unusual, being much higher than the five-year average of 620 t/month.
Taiwan's export pattern began to change last year. Muted demand in mainland China has prompted Taiwanese producers to look for alternative outlets for their Group II products.
