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.
Neste’s Porvoo prepares for major turnaround
Neste’s Porvoo prepares for major turnaround
London, 2 April (Argus) — Finland's Neste started preparations for scheduled maintenance at its 205,000 b/d Porvoo refinery on 1 April, with the nine-week turnaround due to start in mid-April. The current preparations include the "shutdowns of process units", Neste said. The turnaround involves shutting down the entire refinery for "statutory inspections, maintenance works and asset improvement initiatives", aiming to make Porvoo "the most sustainable refinery in Europe by 2030 and to reach carbon-neutral production by 2035", Neste said. Neste plans to convert Porvoo into a 3mn t/yr renewables facility, at a cost of €2.5bn ($2.74bn). The conversion is to be carried out in stages and to be completed in the mid-2030s. Porvoo houses a 250,000 t/yr Group III base oil unit and accounts for around 28pc of Europe's Group III nameplate capacity . Group III prices have started to rise as disruption in the Red Sea has delayed vessel arrivals and limited supply. The Porvoo turnaround will tighten spot availability further and increase Europe's reliance on delayed imports. The refinery has recently been affected by strike action since 11 March, which has since been extended twice, with the latest end date set to 7 April. The industrial action is in response to government plans for labour market reforms. The strike has impacted "stevedoring jobs" and "Viking Line's cargo handling tasks in the ports of Helsinki and Turku", the Central Organisation of Finnish Trade Unions told Argus . Fuel distribution has also been disrupted. "We are working hard to keep fuel distribution ongoing as well as possible in this difficult situation. But as we have already said, the situation is getting worse, and the fuel availability at the stations changes daily," Neste told Argus on 27 March. By Christian Hotten Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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.
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