Base oils and waxes
Overview
As the world pivots towards decarbonisation, challenges and opportunities loom for base oils production and demand. Staying on top of this market is more important than ever to realise these opportunities and mitigate pricing risk.
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Latest base oils and waxes news
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India’s base oil imports jump in January-June
India’s base oil imports jump in January-June
Singapore, 26 August (Argus) — India's base oil imports rose by 68pc on the year to 284,607t in June, bringing imports for January-June to 1.48mn t, an increase of 34pc from a year earlier. Imports in June were down by 21pc from May but remained the second-highest monthly imports for the year. High import arrivals in June reflected active replenishment of cargoes in the second quarter of the year. Demand in India is typically supported before the monsoon season between June to September. Imports from the US and Singapore saw the biggest jump on the year by more than four-fold and three-fold respectively. Weaker demand and ample supply of imported and domestic volumes of most grades pressured import discussions in June. Import prices largely fell throughout June, and into July and August. Argus -assessed Group II N150 cfr India prices averaged at $887.50/t and N500 cfr India prices averaged at $982.50/t in June, both down by around 4.7pc from a month earlier. By Chng Li Li India base oils imports (t) Jun'24 m-o-m ± % y-o-y ± % Jan-Jun'24 y-o-y ± % South Korea 126,481 -18.7 72.2 640,196 53.3 UAE 32,511 29.3 169.5 152,985 61.8 Singapore 31,949 -42.7 286.2 200,946 39.2 US 28,378 26.5 323.9 97,728 55.3 Saudi Arabia 19,933 -9.1 9.3 113,092 -27.1 Monthly total 284,607 -20.9 68.2 1,477,405 33.5 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
May US base oil exports fell amid inventory builds
May US base oil exports fell amid inventory builds
Houston, 23 August (Argus) — US base oils and finished lubricants exports in May fell by 14pc from year-earlier levels as refiners directed more surplus into inventories to prepare for hurricanes instead of the export market. Base oil and lubricant exports were 3.53mn bl (113,900 b/d) in May, down from 4.08mn bl (131,900 b/d) a year prior, according to the US Energy Information Administration (EIA). Monthly exports fell by 7.5pc from April totals of 3.82mn bl (127,300 b/d). Several US refiners started pulling back export volumes because of efforts to build hurricane inventories for the US Atlantic hurricane season. The season typically lasts between August and October along the US Gulf coast. The season was forecast to be more intense than average, which pressured US refiners to build more inventory than in 2023. Export demand remained firm as Group I and Group II supplies tightened globally because of multiple refinery turnarounds, particularly in Europe. South American base oil prices also started to increase as a key domestic refiner raised its pricing in Brazil. This opened up more arbitrage opportunities for US Gulf coast refiners. US exports to Mexico in May were 1.35mn bl, steady with year-earlier levels of 1.36mn bl. Monthly exports to Mexico fell by 3.7pc from April totals of 1.42mn bl. Export volumes to Mexico remained above expectations as import quotas imposed by the government appeared to have less effect than planned. The import quotas took effect in October 2023 and put some downward pressure on volumes from a year-over-year basis. Exports to Brazil were 323,000 bl in May, down by 15pc from 373,000 bl in 2023. Monthly exports also fell by 17pc from 377,000 bl in April. Arrivals of US material to Brazil in May fell as a key refiner lowered its domestic prices in April, which narrowed arbitrage during that month. Exports were lower from year-earlier levels as refinery production in Brazil was higher. A key supplier in the region began delaying deliveries of some grades, which increased import requirements for the domestic market. Exports to Chile reached their highest monthly record since 2010, totaling 142,000 bl in May. US exports to Belgium, France and the Netherlands totaled 289,000 bl in May, a 54pc decrease from year-earlier levels of 635,000 bl. Monthly exports dropped by 51pc from April totals of 585,000. Base oil exports to India fell to 62,000 bl, down by 84pc from year-earlier totals of 377,000 bl. There were no reported exports to Nigeria in May. By Karly Lamm and John Dietrich Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore's June base oil exports fall on weak demand
Singapore's June base oil exports fall on weak demand
Singapore, 6 August (Argus) — Singapore's base oil exports fell in June, GTT data show, as demand in China and India weakened. The decline mirrors the trend in South Korea , Asia's top base oils supplier. Exports dipped amid weakening demand from China and India, the two largest lubricant consumers in Asia. Chinese demand typically falls in June as severe weather conditions weigh on construction activity. Buyers also held back as prospects of an economic recovery remained uncertain. China's GDP grew by 4.7pc in the second quarter, below the government's target of 5pc for the year, according to official data. The country's economic performance continues to be plagued by weak consumption and persistent property market slump. Indian buying interest decreased as its monsoon season began in June, weighing on industrial and transportation activities. Overall southeast Asian demand held relatively stable. June volumes were down by 6pc on the month and 9pc on the year, but remained 19pc higher than the five year monthly average of 58,100t. By Tara Tang Singapore's base oil exports (t) Jun'24 m-o-m ± % y-o-y ± % Jan-Jun'24 y-o-y ± % India 26,432 -40.1 1.1 202,105 37.2 China 21,288 -50.9 -35.2 209,923 -23.2 Indonesia 31,619 -12.0 -5.2 188,899 1.0 Malaysia 13,598 -1.1 -15.6 77,234 12.8 Total 140,549 -24.9 -19.6 962,528 -4.9 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Dutch 1Q base oil output falls on maintenance
Dutch 1Q base oil output falls on maintenance
London, 31 July (Argus) — Dutch base oil production fell on the year in the first quarter of 2024 with planned maintenance at ExxonMobil's 900,000 t/yr Rotterdam refinery. Imports rose to offset limited domestic spot supply. Base oil production fell to its lowest in five years — output was 53,000t in the first quarter of 2019, according to government data. lasted from 12 February to the end of April 2024, cutting an estimated 190,000t of base oils from the market. Tighter domestic spot availability led to a rise in imports on the year as buyers looked towards alternative suppliers. Imports from Germany rose in the first quarter by 59pc to 25,000t, on the quarter. Competitive base oil prices further supported a rise in imports. Average Argus -assessed spot prices for the Group II N150 and N600 grade slipped in the first quarter of 2024 by 10pc and 7.5pc on the year to €1,207/t and €1,072/t, respectively. Domestic demand edged down, probably owing to a rise in Dutch electric vehicle (EV) sales of 19.7pc on the year to 30,055 units. Petrol and diesel car sales fell by 25.9pc and 16.6pc to 26,421 and 942 units, respectively, on the year, data from the European Automobile Manufacturers' Association show. By Christian Hotten Dutch base oils t 1Q 2024 1Q 2023 ±% Production 121,000 246,000 -50.0 Imports 360,160 251,490 43.0 Demand 73,000 87,000 -12.0 Statistics Netherlands, GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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