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China’s base oil imports registered a 15-year low in 2023, customs data showed, primarily due to weaker-than-expecetd demand recovery.
Source: GACC, OilChem
China’s base oil imports decreased by 1.82% year-on-year to 1.75 million tonnes in 2023, according to data from the General Administration of Customs of China (GACC). The imports in 2023 were mostly based on rigid demand in China, mainly because the domestic economic recovery was slower than expected, in addition to changing procurement and stockpiling strategy of China’s end-market players, per OilChem survey.
Separately, the imports reached an annual high of 252,000 tonnes in March, accounting for 14.4% of the total imports in 2023, as demand for Group II base oil was strong while domestic supply was not adeauqte.
The imports were the lowest in October at 61,000 tonnes, accounting for 3.5% of the total, because the high import costs eroded importers’ speculation appetite amidst slack domestic demand.
Base Oil Imports by Country of Origin
Source: GACC, OilChem
For supplying countries, the imports mainly came from South Korea, Singapore, Taiwan (China), Qatar and Japan, of which South Korea was the largest supplier, taking up 37.8% of the total imports.
2022-2023 China Base Oil Exports
Source: GACC, OilChem
On the other hand, China’s base oil exports jumped 10.8% year-on-year to 159,000 tonnes, the customs data showed.
August saw the largest exports of 26,800 tonnes, accounting for 16.8% of the total in 2023, as the low prices attracted more foreign buyers. And the exports reached an annual low of 3,619 tonnes in September, owing to increasing domestic demand.