Weekly Asia Base Oil Price Report

The base oils situation in Asia mirrored that of other regions, offering few opportunities for regional suppliers to find buyers at more distant destinations and placing pressure on spot prices. Perhaps the API Group III segment was slightly more insulated from the downward adjustments as supply was somewhat more limited against demand and suppliers appeared more reluctant to adjust prices down, especially since some of these grades are difficult to replace in certain technical applications and specialty segments with strict approvals.

Group I
Group I prices continued to face downward pressure from mounting supply and lackluster demand. Despite the permanent closure of several Group I plants in Asia and Group I consumption registering healthy levels in downstream applications such as industrial, marine, railway and heavy-duty applications, along with recent plant turnarounds, Group I production rates have been kept high and additional availability has emerged at various origins, with Southeast Asia showing a slew of offers.

Given feeble prospects of an immediate improvement in demand levels, suppliers have opted for reducing offers in order to entice buyers. The heavy grades are more readily available and have therefore seen the larger adjustments. Availability of competing Group II grades has also grown, particularly after the start-up of the ExxonMobil plant in Singapore in the fourth quarter of 2025. Group I SN150 remained tighter and continued to command firmer levels.

Group I availability from Southeast Asia has grown in the last few weeks and suppliers have made attractive offers to encourage business.

The Thai Group I producer, which had offered several small cargoes of Group I SN500 and bright stock over the last few weeks, adjusted prices down this week, with small volumes of SN500 and bright stock on the table. A small cargo of SN500 was reportedly offered at $890 per metric ton FCA Thailand and bright stock at $1,285/t FCA Thailand, reflecting a very slight decrease of $5/t from the previous week. There appeared to be more buying interest for the bright stock than for the SN500. These prices have shown gradual weekly downward adjustments since early December, mirroring the tapering off of buying interest and the improved supply levels.

It was also heard that there was Group I availability from Indonesia, with flexibag volumes of the light grade hovering in the low $700s ex-works Indonesia, a mid-viscosity grade in the low $800s ex-works, and bright stock priced in the mid $1,200s/t, also ex-works Indonesia.

In China, a couple of domestic Group I spot cargoes had emerged in December as a producer found itself in an oversupply situation, but no further offers have been heard recently and the supplier was not expected to actively seek spot business until after the Lunar New Year holidays in mid-February. It may also wait for prices to recover as Group I prices plummeted during the week on growing domestic inventories and plentiful import supplies. At the same time, offers of domestic products were expected to hold price levels better than imports because buyers were likely to favor local cargoes that were more likely to arrive before activities come to a standstill for the New Year celebrations.

Group I prices in India largely followed the downward trajectory seen in other parts of Asia, with most import indications edging down between $5-20/t on a CFR India basis on plentiful supply and sluggish demand. Despite upbeat economic growth predictions for India this year, many uncertainties lingered and lubricant consumption has not strengthened yet. Lower crude oil and gasoil prices during most of December and part of January added to the downward Group I price pressure.

Prospects of increased availability from a key Middle East producer who had shut down its plant for a turnaround in November-December and has restarted operations also dampened the need to acquire base stocks immediately, although the producer was not expected to offer much spot supply until it can rebuild inventories. At the same time, sociopolitical turmoil in Iran, which is also a source of Group I grades, could disrupt output.

Indian domestic base oil production was described as robust and supplies were anticipated to be plentiful during the last quarter of the fiscal year, which in India ends on Mar. 31, and this also gave buyers more confidence in terms of opportunities to locate enough base oils when needed. Local producers lowered Group I domestic prices for January business as well.

Group II
The Group II heavy grades continued to be under pressure because of more plentiful availability against muted buying interest. Regional suppliers adjusted offers down to lock in business and reduce their product overhang.

In China, Group II heavy grades underwent the largest downward adjustments given ample supplies. Buying interest in Group II grades in general was muted, but particularly so for the heavy grades.

Reduced import volumes from Taiwan had triggered some worries about potential difficulties in securing Group II spot cargoes, but availability was deemed sufficient from other sources in Asia.

In India, Group II import prices lost ground this week as well, with moderate decreases between $5/t-10/t being reflected in CFR India prices. Some of the downward adjustments were not only driven by a supply and demand imbalance, but by falling crude oil and gasoil values during much of December and January. Domestic suppliers lowered January list prices for the 500N on downward pressure from the feedstock side and lackluster buying appetite.

Group III
The Group III grades were somewhat exposed to downward pressure because of the same fundamentals that were impacting the other base oils – ample supplies against lackluster demand. However, the Group III cuts seemed to be able to avoid decreases as suppliers held their offers firm as they had less inventory pressure and there were signs that this segment was going to see increased business in the coming weeks.

In China, local supplies continued to compete with imported material, but this tense situation appeared to have calmed down slightly as foreign suppliers have also found other high-value outlets for their products. Regular suppliers to China such as South Korean producers have maintained their market share and in fact, appeared to have increased their volumes moving to China in November and December. With most buyers now having acquired sufficient stocks, spot buying interest was anticipated to weaken.

A number of domestic Group III plants were expected to come on line in China over the next couple of years, including a coal-to-liquids unit along with increased polyalphaolefin and naphthenic base oils capacity, and this was anticipated to continue placing pressure on values.

A similar situation was anticipated to affect the market in India as national oil company Indian Oil Corp. was also expected to have completed an expansion of its Group III plant in Haldia. The refinery was heard to have shut down in November for maintenance on the existing Group II trains and has started output of Group III cuts. However, one of the differences with China might be that demand for Group III base oils has the potential to grow steadily in India over the next few years as automotive and immersion cooling applications expand. In China, there is a definitive push towards vehicle electrification, which is likely to dampen demand for motor oils.

Most Group III prices were reported within the published ranges in Asia, but at least one producer’s prices carry a premium because of its full approvals and ability to offer global supply from multiple production sites. The producer’s lowest prices for all grades were above the high end of the published FOB Asia ranges. The published ranges may be adjusted in the coming weeks pending further market input.

Shipping

Details about recently concluded business emerged during the week, with a 17,000-18,000-ton lot heard to have been booked to load in Yanbu and Jeddah, Saudi Arabia, to West Coast India, Jan. 25-Feb. 5.
A 13,000-ton parcel was expected to have loaded in Singapore to Mumbai and JNPT, India, Jan. 8-9 on the Chemstar Tierra.
An 8,200-ton cargo was lifted from South Korea to Mumbai and JNPT, Dec. 20-25 on the Hakuba Galaxy.
A 4,500-ton lot was lifted from South Korea to Karachi, Pakistan, Jan. 1-5 on the Hanyu Camellia.
About 18,200 tons were lifted in Ulsan, South Korea, to India, Jan. 13-17 on the Kaimon Galaxy.
A 2,000-ton cargo was expected to cover the Straits-West Coast India and United Arab Emirates route in early January.
Approximately 13,500 tons were anticipated to be shipped from Yanbu/Jeddah, Saudi Arabia, to Mumbai, India, Jan. 24-30.
A 2,200-ton parcel was on the table for shipment from Yeosu to Taiwan, Jan. 15-17.
A 3,600-metric ton cargo was on the table for shipment from Qatar to West Coast India, January 18-20.
A second cargo of 6,300 tons was also mentioned to cover the same route, with the lifting expected Jan. 21-22.
A 4,500-ton lot was likely to be shipped from Mailiao, Taiwan, to Karachi, Pakistan, in early January.

Production

A number of turnarounds have already been announced for 2026. The latest information is provided below, along with turnarounds that took place in the second half of 2025 as they may have impacted base oil pricing at the time of completion and beyond.

Group I

• Luberef scheduled a 45-day turnaround at its plant in Yanbu, Saudi Arabia, from mid-November until December 2025. The unit produces Group I, Group II and Group III base oils. The plant underwent an expansion in 2017. The company had shut down its plants in Yanbu and Jeddah for about a week in Q2 2025.
• Luberef has secured a new feedstock supply agreement for the company’s Jeddah facility. The facility had been expected to close by mid-2026, but the new supply agreement will allow it to continue operations beyond 2026. As a result, the company will maintain its current production capacity of 275,000 tons per year of Group I base oils. With the completion of the Growth-II Project in Yanbu, Luberef’s total production capacity will reach 1.53 million tons per year, making it the only supplier in the region able to offer Group I, Group II, and Group III base oils.
• Eneos’s Mizushima A underwent maintenance from October to November in Japan.
• Two Eneos Group I plants were permanently closed in recent years.
• Chennai Petroleum completed a turnaround at its Group I plant in Chennai, India, in September/October for approximately one month.
• Thai Lube Base Oil’s Group I unit in Sriracha, Thailand, was shut for 45 days from mid-July to second half August.
• PetroChina’s Dalian refinery began a permanent shutdown in 2023. The base oils unit closed in late 2024, with full closure by July 2025. Inventory clearance was scheduled by end of August 2025.
• CNPC’s Fushun plant in Liaoning was expected to increase Group I production to offset the Dalian closure. Bright stock capacity is estimated at 60,000 t/y.

Group II

• ExxonMobil has completed a capacity expansion at its Singapore Resid Upgrade Project and commenced on-spec production in August 2025. The producer has started to offer an ultra-heavy Group II grade with similar characteristics to bright stock. The project is an upgrade of the company’s integrated manufacturing complex, which will allow it to expand large-scale production of its global EHC Group II slate and meet growing demand for high-performance lubricants in the Asia-Pacific region, the company said.
• Indian Oil Corp. was understood to have completed a one-month turnaround at its Group II plant in Haldia in November 2025. The producer also completed an expansion of its Group III capacity in Haldia in December.
• Hyndai Oilbank/Shell plans to shut down its Daesan, South Korea, Group II plant for a routine turnaround that will last a month and a half in late March/early April 2026.
• Formosa Petrochemical postponed a scheduled turnaround and catalyst change at its Mailiao, Taiwan, plant from the fourth quarter of 2025 to third quarter of 2026.
• Hyundai Oilbank Shell Base Oils plans to shut down its plant in Daesan, South Korea, in April 2026 for approximately 45 days.
• HPCL reportedly conducted a 45-day turnaround at its Group II trains from May until July 2025 in India, following some delays.
• Excel Paralubes completed a scheduled turnaround at its Lake Charles, Louisiana, U.S. plant in October 2025. The plant had been running at reduced rates for most of the year, limiting spot availabilities in the U.S., but a catalyst change has allowed the company to maximize output.
• Motiva restarted operations in June 2025 after a three-week turnaround at its Port Arthur, Texas, U.S., hydrocracker beginning in late May. However, some production issues lingered for several more weeks, reducing the producer’s Group II inventories and tightening Group II spot availability in the second half of 2025.

Group III

• Petronas plans to shut down its Group II/Group III Melaka plant in Malaysia for a turnaround in mid-2026.
• Indian Oil Corp. completed an expansion of its Group III capacity in Haldia and astart-up of the expanded plant was achieved in December 2025.
• The restart of Shanxi Lu’an’s base oil plant following an unplanned shutdown in December should bring more Group III supplies to the market in early 2026.
• A fire at SK-Pertamina’s refinery in Dumai, Indonesia, broke out on October 1, 2025, but was quickly extinguished, with no impact to base oil supply reported. The Dumai Group III base oil plant was shut down for maintenance after the fire and was restarted shortly after. Term supplies were not expected to have been affected. Pertamina also operates a Group I plant in Cilacap, Indonesia. The Dumai refinery is a joint venture between Indonesian state-run Kilang Pertamina Internasional and South Korean producer SK Enmove.
• Sinopec restarted its Group III plant in Yanshan, China, in late July 2025.

Prices

Crude Oil
Crude oil futures declined on Monday as tensions in Iran seemed to ease. U.S. President Trump warned Iran about potential ‘strong measures’ if the country resumes executions of protesters, keeping oil traders on edge, while new trade tensions–in particular a fresh 10% tariff on goods from several European countries who are backing Denmark and Greenland against Trump’s threats of taking Greenland over–were dampening the demand outlook for oil.

• Brent March 2026 futures were trading at $63.33 per barrel on January 19, 2026, slightly up from $63.11/bbl for front-month futures on Jan. 12 (ICE Futures Europe).
• Dubai crude futures (Platts) for February 2026 settled at $63.21/bbl on Jan. 16, 2026, up from $62.04/bbl for front-month futures on Jan. 9 (CME).

Base Oils
Spot base oil prices in Asia were steady to soft, with activity still muted and downward pressure emerging due to ample supplies and sluggish demand.

The price ranges portrayed below reflect discussions, bids and offers, as well as deals and published prices widely regarded as benchmarks for the region.

Ex-tank Singapore
Group I solvent neutral 150 steady at $780/t-$820/t
SN500 lower by $20/t at $890/t-$930/t
Bright stock prices fell by $20/t to $1,270-$1,310/t 
Group II 150N steady at $820/t-$860/t
500N down by $20/t at $930/t-$970/t

FOB Asia
Group I SN150 steady at $670/t-$710/t
SN500 fell by $20/t to $700/t-$740/t
Bright stock prices softer by $20/t at $1,090/t-$1,130/t

Group II 150N stable at $720/t-$760/t
500N was assessed down by $20/t at $760/t-$800/t

Group III grades were largely unchanged:
4 cSt heard at $1,080/t-$1,120/t
6 cSt assessed at $1,050/t-$1,090/t
8 cSt holding at $900/t-$940/t

Gabriela Wheeler can be reached at gabriela@LubesnGreases.com

Lubes’n’Greases shall not be liable for commercial decisions based on the contents of this report.