Argentina’s base oils supply rose to a ten-month high in November as an ongoing wave of arbitrage shipments boosted the country’s imports.A steady flow of shipments from markets like Asia-Pacific and Mideast Gulf outweighed a slump in domestic base oils production last year and cut demand for supplies from the US.The arbitrage flows could slow over the coming months amid more balanced supply in the Asia-Pacific region and an expected pick-up in demand from China.Signs of slowing lubricants consumption in Argentina’s domestic market also increased the attraction for blenders to procure smaller volumes more regularly in order to minimize their inventories..Argentina's Oct lube demand falls.Base oils imports of 23,410mᶟ (20,740t) in November rose from an already-high 19,350mᶟ in October to the highest in more than six years, government data showed.The high volumes extended a trend that began in August and boosted the country’s total imports to 138,050mᶟ in the first eleven months of the year.The shipments rose by 88pc from 73,280mᶟ during the same period last year to the highest in more than six years..Some countries have seen a rise in base oils imports in recent years as blenders sought more premium-grade base oils that domestic refiners were unable to supply.A large portion of Argentina’s base oils imports typically consists of Group III base oils.But the surge in last year’s imports mostly reflected the more competitive price of the shipments.The supplies included Group I base oils cargoes from the Mideast Gulf, whose quality is different from Group I cargoes from other sources like Europe.The cargoes also included a swathe of Group II shipments from Asia-Pacific, whose prices were at a steep discount to supplies of US origin.The November imports included more than 14,000mᶟ that originated from South Korea. The volume far exceeded the volume of supplies from the US, which is typically Argentina’s largest overseas supplier.Rising base oils imports cut requirements for domestic supplies.Base oils output of less than 55,000mᶟ in the first eleven months of the year was down from more than 95,000mᶟ during the same period in 2021..US’ Oct base oils exports to Latam fall
Argentina’s base oils supply rose to a ten-month high in November as an ongoing wave of arbitrage shipments boosted the country’s imports.A steady flow of shipments from markets like Asia-Pacific and Mideast Gulf outweighed a slump in domestic base oils production last year and cut demand for supplies from the US.The arbitrage flows could slow over the coming months amid more balanced supply in the Asia-Pacific region and an expected pick-up in demand from China.Signs of slowing lubricants consumption in Argentina’s domestic market also increased the attraction for blenders to procure smaller volumes more regularly in order to minimize their inventories..Argentina's Oct lube demand falls.Base oils imports of 23,410mᶟ (20,740t) in November rose from an already-high 19,350mᶟ in October to the highest in more than six years, government data showed.The high volumes extended a trend that began in August and boosted the country’s total imports to 138,050mᶟ in the first eleven months of the year.The shipments rose by 88pc from 73,280mᶟ during the same period last year to the highest in more than six years..Some countries have seen a rise in base oils imports in recent years as blenders sought more premium-grade base oils that domestic refiners were unable to supply.A large portion of Argentina’s base oils imports typically consists of Group III base oils.But the surge in last year’s imports mostly reflected the more competitive price of the shipments.The supplies included Group I base oils cargoes from the Mideast Gulf, whose quality is different from Group I cargoes from other sources like Europe.The cargoes also included a swathe of Group II shipments from Asia-Pacific, whose prices were at a steep discount to supplies of US origin.The November imports included more than 14,000mᶟ that originated from South Korea. The volume far exceeded the volume of supplies from the US, which is typically Argentina’s largest overseas supplier.Rising base oils imports cut requirements for domestic supplies.Base oils output of less than 55,000mᶟ in the first eleven months of the year was down from more than 95,000mᶟ during the same period in 2021..US’ Oct base oils exports to Latam fall
