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.
Fire closes Lubricant blender Smitty’s Louisana plant
Fire closes Lubricant blender Smitty’s Louisana plant
Houston, 22 August (Argus) — US lubricant blender and fuel supplier Smitty's Supply's Roseland, Louisiana, plant shut down Friday due to a fire. The fire started at the Tangipahpao Parish facility in the afternoon, with sources reporting there were explosions at the site. No injuries have been reported, according to the Tangipahpoa Parish sheriffs office, but a 1-mile radius around the intersection of Highway 51 and Highway 10 has been evacuated in response. More than 35 agencies were working to contain the fire late Friday. It is not clear if the fire has hit the company's production facilities or its warehouses. The company is one of the largest independent lubricant blenders and manufacturers in the US. It also has facilities in Vicksburg, Mississippi, and Hammond, Indiana, which is in the Chicago metro area. Market participants expect the loss of production will tighten finished lubricant availability and could push prices higher. Feedstock base oil prices are expected to fall because Smitty's was one of the largest base oil buyers in the US, particularly for Group II and Group III grades. By John Dietrich and Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
May US base oil exports up by 8pc
May US base oil exports up by 8pc
Houston, 1 August (Argus) — US base oil exports increased by 8pc in May, according to the Energy Information Administration (EIA), because softer-than-expected seasonal demand pushed more volumes into the export market. Base oil exports fell 3.7pc from April because multiple Group II refinery turnarounds limited some surplus availability for domestic and export buyers in the beginning on the month. Exports to Mexico reached their highest total for the month of May on EIA record. Product availability varied depending on supplier as some worked on rebuilding their own inventories and others preferred to export available surplus to Mexico over other lower-priced destination regions. Exports to Belgium, France and the Netherlands, a proxy for European demand, rose from May 2024 because of firm demand for Group I grades, particularly bright stock. Fewer refiners offered export volumes to India because of leaner domestic inventories and unattractive pricing from that region. Exports to Chile, Ecuador and Peru declined on limited vessel quantity volumes. Multiple Group II refiners did not have enough surplus to build vessel exports because of late-spring/early-summer turnarounds. Some suppliers were also willing to hold onto more surplus because they were prioritizing stockpiles ahead of the US Atlantic basin hurricane season. By Karly Lamm May US base oil exports bbls May-25 m-o-m± % y-o-y± % Mexico 1,584,000 16 26 Brazil 397,000 4 23 Belgium 430,000 56 92 France 46,000 6 -27 The Netherlands 85,000 18 4,150 India 54,000 -33 -13 Ecuador 54,000 -38 -17 Peru 59,000 -53 -23 Chile 112,000 -17 -21 Total 3,816,000 -3.7 8.0 *Total includes all countires, not just those listed Energy Information Administration (EIA) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Asian Group II N500 base oil prices drop
Asian Group II N500 base oil prices drop
Singapore, 28 July (Argus) — Prices for Asian supplies of Group II N500 have slipped below Group I SN 500 prices, because of plentiful supplies of the former while Group I supply availability remains scant. Asian Group II N500 fob export prices fell to a discount of $10/t to Group I SN 500 in the week to 25 July. This follows a recent trend of narrowing premiums for Group II to Group I base oils. Group II neutrals are typically priced at a premium to Group I volumes because of more complex refining processes that create base oils with enhanced characteristics such as higher purity, improved viscosity index and better antioxidation properties. N500 prices last dropped below SN 500 in August 2024. Group II supplies increase Group II heavy neutral prices have been decreasing steadily from an over two-year high of $1,000/t fob Asia in March because of plentiful availability. Supplies increased after a key south Korean refinery completed a scheduled turnaround in late April. Some regional refineries have been incentivised to maintain elevated output of heavy neutrals because of a strong premium to light neutrals, keeping N500 supplies plentiful. The premium for Asian fob export prices of Group II N500 to N150 hit $280/t in the week ending 11 April — the highest since early October 2021. The premium has since lowered to $220/t in the week ending 25 July, but remains higher than the five-year average of about $147/t. In contrast, SN 500 supplies remain scant, which drove prices to a 51-week high of $940/t fob Asia in the week ending 18 July. Offers from various northeast Asian and southeast Asian producers remain curtailed because of scheduled maintenances. Most market participants do not expect SN 500 to hold a sustained or large price premium to N500, despite a global trend of falling Group I and expanding Group II production capacity. N500 has held an average premium of about $26/t to SN 500 over the past year. Most regional blenders remain unwilling to pay a premium for Group I over Group II, particularly where they are able to substitute Group I with Group II base oils in their lubricant formulations. The marine sector is an exception that has not fully pivoted away from Group I base oils, because of their higher viscosity and solvency. But marine lubricant demand is steady or subdued — in line with lower bunker sales. Bunker consumption at the port of Singapore over January-June edged down by 0.8pc on the year to 27mn t, according to preliminary data from the Maritime Port Authority of Singapore. Thai spot offers are anticipated to return in late August after the completion of maintenance at a Thai refinery, which would help ease Group I tightness. Southeast Asian heavy grade supplies are also expected to grow in the second half of the year with additional capacities coming on line, and this is likely to weigh on prices of Group I and II heavy grades. By Tara Tang Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
India’s Group I base oil prices rise on limited supply
India’s Group I base oil prices rise on limited supply
Singapore, 22 July (Argus) — India's Group I base oil prices have increased because of curtailed supply from Mideast Gulf suppliers. There was a brief disruption of supply and logistics for Mideast Gulf Group I grades with low viscosity index (LVI) during the Israel-Iran conflict from 13-24 June. Supply and logistics concerns have eased after the ceasefire and shipments have resumed. But refineries are rebuilding inventory on the back of firm domestic and export demand, and recent export tenders have concluded at higher prices after the ceasefire. Argus -assessed India's Group I SN 500 (LVI) cfr import prices stood at an average of $915/t so far in July, up from $891/t a month earlier and $870/t a year earlier. SN 150 (LVI) cfr import prices are at an average of $723/t in July, up from $705/t in June and down from $805/t a year earlier. Another regular Mideast Gulf supplier has reduced supply availability, likely because of maintenance in the first and fourth quarter this year. Reduced supply has driven some buyers to bid higher for alternative Group I supply, including from the US and Europe. Supply of Asian Group I grades has been limited in 2025 because of maintenance and a closed arbitrage window to India. Refineries in Thailand and Japan are undergoing maintenance. Asian suppliers largely supply contractual volumes and are inactive in the spot market. Buyers in India prefer to buy volumes domestically but supply from Indian refineries is insufficient to meet demand, prompting buyers to seek imports. Supply of heavy grades is more limited than light grades. Argus -assessed Indian Group I SN 500 cfr import prices stood at an average of $958/t in July, up from $934/t a month earlier and $924/t a year earlier. India's Group I SN 150 cfr import prices stood at an average of $723/t in July, up from $708/t a month earlier and down from $924/t a year earlier. The discount of Group I to Group II base oils have narrowed as the former's prices rise. Group I SN 500 cfr import prices were at a discount of $45/t to Group II N500 cfr import prices in the week to 18 July. The discount is higher than the five-year average of $28/t, but lower than the high of $105/t in March. Group I SN 150 cfr import prices were at a discount of $40/t to Group II N150 cfr import prices in the week to 18 July. The discount is higher than the five-year average of $31/t, but lower than the high of $75/t in March. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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