Argentina’s base oils imports surged in August to a multi-year high as a wave of arbitrage supplies reached the country.Imports of 20,610mᶟ (18,260t) rose more than fourfold from 3,750mᶟ the previous month to the highest in more than seven years, government data showed..The rise in shipments lifted the country’s total imports to more than 77,000mᶟ in the first eight months of the year.The volume was up more than 25pc from 60,780mᶟ during the same period last year. The increase in shipments had been less than 10pc in the first seven months of the year.Imports got a boost from the delivery of a rare and large shipment that originated from the UAE.Argentina has previously procured supplies from the UAE. These tended to be smaller volumes of less than 500 t/month.Argentina’s large share of Group III base oils in its monthly imports suggested those regular UAE volumes also consisted of premium-grade base oils.The unusually large size of the imports from the UAE in August suggested that the supplies were a different grade whose availability is more plentiful in the Mideast Gulf region. The shipment also likely reflected moves to take advantage of the gap between prices in the Mideast Gulf and in the Americas market.The flow of arbitrage shipments from the Mideast Gulf to Latin America would add to an increasingly regular flow of cargoes from Asia-Pacific to the region. The shipments also highlighted the surplus volumes in a growing number of markets during the third quarter of the year.The competitive prices for the supplies and the size of the shipments curbed Latin American buyers’ requirements from their more regular suppliers.The US is usually the largest base oils supplier for Argentina and Latin America.Shipments to Argentina from other sources like Finland, Qatar and Malaysia tended to be much smaller and consisted of base oil grades that were unavailable in the US market..Asia's July exports to Americas rise
