Global base oils exports to key markets in Africa fell to a ten-month low in July amid a slump in shipments from the US.Exports from Europe and from other sources were steadier.Total exports to Egypt, Nigeria, South Africa and Kenya combined came to around 65,000 tonnes in July, government data showed..The supplies originated mostly from Europe, along with shipments from other sources like US and Egypt.The July volume fell from more than 72,000 tonnes the previous month to the lowest since last September.It still rose by 11% and for the sixth time in seven months from year-earlier levels.The strong pick-up in exports pointed to rising base oils and lubricants demand in those destination-markets.The dynamic highlighted the attraction and importance for suppliers to boost market share in a region where stronger consumption contrasted with weak or shrinking demand in US and Europe.A growing market was all the more important in view of the expected rise in base oils supply following the start-up of a swathe of new production capacity in Asia in the coming months..The drop in total base oils exports to the four African countries in the month of July extended a similar trend in recent years amid a seasonal slowdown in demand in markets like Nigeria.The slowdown in demand showed signs of impacting supplies from the US more than from other markets.The dynamic suggested that a larger share of shipments from the US consisted of spot volumes, with the slowdown in demand impacting those supplies more than term shipments.The drop in demand for spot shipments compounded the difficulty for US suppliers to clear surplus volumes at a time when their exports to Mexico faced a sharp slowdown.Total US base oils and lube exports in July slumped in response.Besides more volatile demand, spot shipments to markets like Nigeria also faced exposure to more competitive prices for supplies from other sources.Global exports to Nigeria in June included a cargo from Argentina.Exports to the West African country in July included a shipment from Egypt.Competition from other sources was likely to increase in the coming months as new production in Asia begins to come online.The rise in supply is likely to disrupt existing trade flows and leave more surplus volumes in markets like US and Europe.The trend boosted the attraction of locking in more Africa-bound supplies under term contracts, or of targeting other markets where spot supply faced less competition from other sources..US’ July base oils exports fall.Saudi Arabia’s July Yanbu/Jeddah base oils exports fall.Global base oils exports to Africa stay lower in June.Base Oil News stories and analysis also available on ICIS platform
