Episode 1437: PODCAST: Asia base oils competition heightens amid growing capacities

SINGAPORE (ICIS) – Asia’s base oils market is in a period of adjustment, with narrowing light–heavy grade spreads, rising regional supply and evolving trade relationships reshaping sentiment. Heavy-grade premiums in Group II have sharply corrected, while upcoming turnarounds may lend short-term support to lighter grades. New capacities across Singapore, India and Saudi Arabia are set to heighten competition, alongside China’s growing export ambitions and shifting geopolitical dynamics. Meanwhile, discussions around a potential US–India trade deal and India’s expanding crude sourcing options add further uncertainty to future cost structures and import flows.

In this chemical podcast, ICIS editors Michelle Liew and Olivia Dai break down key takeaways from the 30th ICIS World Base Oils & Lubricants Conference and discuss how capacity expansion, changing trade patterns and policy developments are shaping the outlook for Asia’s base oils market.

• Light–heavy grade spreads in Group II narrow sharply
• New capacities in Singapore, India and Saudi Arabia expected to intensify competition
• China’s structural export growth and evolving US–India trade relations to influence future trade flows