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
Browse the latest market moving news on the global base oils and waxes market.
Thai Feb base oil exports surge on month, but stay low
Thai Feb base oil exports surge on month, but stay low
Singapore, 2 April (Argus) — Thailand's base oil exports more than doubled on the month in February, but remained under pressure given production issues in January. Thailand exported 15,900 kilolitres (14,000t) of base oils in February — more than double from 6,000kl in January — but 42pc lower than the same month last year, according to GTT data. Exports in February were also 11pc less than the five year monthly average of 17,900kl. Exports had plunged in January as production issues affected base oils output at both Thai refineries, which curbed supplies for spot trade. A key Thai refinery announced a maintenance at its crude distillation unit from 16 January, lasting for around 13 days and disrupting feedstock supplies to its base oils unit. There were production issues at another Thai refinery in the middle of December 2023, and it subsequently underwent maintenance from the second half of January to early February. Spot offers from both Thai producers remained scant in February, even after their respective maintenances were completed. Thai cargoes went to three main buyers in February. Singapore, China and Indonesia took 56pc, 24pc and 18pc of total Thai exports respectively. Singapore imported 8,900kl of Thai base oils, more than double from 3,500kl in January but 28pc down from 12,400kl in February 2023. February levels were comparable to the five year average monthly quantity of 8,500kl. Firm demand from marine lubricant blenders in the city state supported buying interest in Thailand's heavy grade base oils. China's imports rose by 59pc on the month to 3,900kl in February, driven by restocking efforts ahead of the lunar new year holiday. But limited cargo availability and lingering uncertainty over China's economic recovery pressured demand, with imports down by 65pc compared to February 2023. Shipments were also below the five year average of 4,500 kl/month. Indonesia bought 2,800kl of base oils in February. This was the fourth time that Indonesia procured base oils from Thailand in nine months, following zero shipments between January 2021 and May 2023. Thai exports to Indonesia are typically infrequent and irregular in timing and quantity, as most Indonesian blenders are reliant on supplies from Indonesia's state-owned refiner Pertamina. Both Thailand and Indonesia produce Group I base oils. By Tara Tang Thailand's base oil exports kl Feb'24 Jan'24 Feb'23 m-o-m ± % y-o-y ± % Singapore 8,943 3,469 12,422 157.8 -28.0 China 3,878 2,442 11,103 58.8 -65.1 Indonesia 2,787 0 0 NA NA Total 15,858 5,951 27,457 166.5 -42.2 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.
Cross Oil refinery naphthenic turnaround ends
Cross Oil refinery naphthenic turnaround ends
Houston, 25 March (Argus) — US independent refiner Cross Oil has ended the maintenance shutdown at its Smackover, Arkansas, 5,000 b/d naphthenic base oil unit. The planned turnaround began at the start of March and was set to last 20-30 days. Cross Oil experienced an unplanned outage in January and February because of winter weather conditions in the US that depleted some of its inventories ahead of the turnaround. Light viscosity naphthenic grades will likely remain tight with Cross Oil' s return because of anticipated heightened demand for the upcoming spring season. Heavier viscosity naphthenic grades are balanced-to-flush for some refiners. Cross Oil's return and the anticipated uptick in demand in the upcoming spring may help to balance out supplies. By Deyzhah Knox Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indian Group III base oil prices rebound in March
Indian Group III base oil prices rebound in March
Singapore, 19 March (Argus) — India's Group III base oil prices have rebounded in March, tracking a generally firm trend in other base oil prices and supported by weaker-than-usual Group III to Group II premiums. Indian blenders typically have more demand for Group II than Group III base oils given their affordability and ample supply of Group II base oils. But Group II prices have risen following a recent tightening of supplies, narrowing the spread between Group II and Group III prices. India's Group III 4cst cfr import prices were at a premium of $90/t to Group II N70 cfr import prices in the week to 15 March, way below the five-year average of $212/t. Group III 4cst was assessed at $1,000/t cfr India in the week to 15 March, rising by $5/t from the previous week. Even as import prices rebounded, current prices remain below some suppliers' price expectations given weaker-than-normal margins, hindering trades. Indian 4cst cfr import prices were at a premium of $223/t to four-week Asian gasoil values in mid-March, in contrast to a five-year average of $360/t. But supply of 4cst is still ample and some suppliers remain under pressure to meet buyers' price expectations. Continuing maintenance at South Korean producer SK Enmove's 26,000 b/d plant in Ulsan from 13 March to 14 April and an upcoming turnaround at its plant in Dumai, Indonesia, which can produce up to 505,000 t/yr of Group III base oils, in May may offset some of the supply pressure in Asia. The Dumai plant is a joint venture with Indonesia's state-controlled Pertamina. India's Group III 8cst import prices had rebounded earlier in February, as supply was more balanced than other Group III grades and demand was firmer with its use in more applications. Heavier base oil grades are in tighter supply than light grades, lending more support to 8cst. Finished lubricant demand is robust in India ahead of the end of its financial year on 31 March and firm economic growth. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Lack of snow reduces Mississippi flood risk: NWS
Lack of snow reduces Mississippi flood risk: NWS
Houston, 15 March (Argus) — The Mississippi River faces below normal flood risk this spring because of historically low snowpack, meaning barges carrying fertilizer and other commodities may experience fewer delays from high water. The lack of snowpack in the Mississippi River basin resulted from persistent drought since last September and unseasonably warm temperatures across the Northern Plains, which prevented a base layer of heavy snow from forming, the National Weather Service (NWS) said in its final spring flood outlook on 14 March. Meteorologist Brennan Dettmann told Argus there is no snowpack in Minnesota, with only a light covering along the northern border, making for one of five driest years since the NWS began recording snowpack in 1872. There is no snow at the Minneapolis-St Paul International Airport this week compared to 10 inches of snow on the ground a year ago. This year, the most amount of snow on the ground at the airport was 7 inches on 14 February, according to NWS. Risk of flooding for the upper Mississippi River and tributaries will be entirely dependent on rainfall, with much of the basin already in a precipitation deficit because of the drought. Barges have been navigating through the upper Mississippi and will soon reach the Twin Cities after locks open tonight at midnight . This time last year, tows were just breaking the ice on Lake Pepin , signaling safe passage to begin through the upper Mississippi River. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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