Group II Base Oils: FOB Asia Prices Spike

Asia and Middle East Weekly Group II Base Oils Commentary / Group II supply tightens in Asia region / Prices rise up to $155/mt WOW / Maintenance outage constrains spot market

Jun 02, 2026

Group II base oil supply tightened further in the week to March 25, with producers in both Taiwan and South Korea absent from the spot market as elevated gasoil margins continued to incentivize middle distillate production over base oil runs. Formosa was heard to have raised domestic market prices by around $150/metric ton, while term export volumes to China were heard to have been reduced by as much as 50%, reflecting a broader tightening of regional supply as producers reassess their output priorities amid ongoing feedstock constraints. The base oil plant in Daesan, South Korea, a joint venture between HD Hyundai Oilbank and Shell Base Oil Co. Ltd., is on track to begin a 45-day planned maintenance at the end of March, with work expected on its No. 1 CDU....

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