Argentina’s base oils supply fell in December, mirroring a sustained slowdown in the country’s lube consumption.Base oils shipments from the US held firm despite the drop in consumption, with the higher volumes boosting their share of the country’s lower total supply.An extension of the trend is feasible if US base oils export prices remain at competitive levels versus supplies in other regions and versus supplies from domestic sources.But the steep deprecation of Argentina’s currency versus the US dollar could outweigh the benefit of those competitive prices and boost the attraction of maximising the procurement of supplies from the domestic market.The country's total base oils supply, or domestic production and imports combined, fell to around 15,000 cubic meters (13,800t) in December, government data showed.The volume fell from close to 19,000 cubic meters the previous month and cut fourth-quarter supply to around 42,000 cubic meters.The fourth-quarter volume fell from more than 60,000 cubic meters in the previous three months to the lowest since late-2020.The lower supply helped to avoid a build-up of surplus volumes in the face of weaker lube demand.More balanced supply-demand fundamentals in turn cushioned the impact of a likely drop in total supply requirements because of weaker demand.A rise in domestic or overseas suppliers’ share of those requirements would cushion further the impact of slower demand.Base oils imports accounted for a growing share of Argentina’s total supply in the third and fourth quarters of last year.Imports from the US accounted for a smaller share of total supply in the fourth quarter amid a pick-up in shipments from South Korea.A reversal of that trend could support a relatively steady flow of shipments from the US to Argentina over the coming months.The share of Argentina's December supplies that originated from the US already rebounded in the month of December..Argentina’s Dec lube demand falls
Argentina’s base oils supply fell in December, mirroring a sustained slowdown in the country’s lube consumption.Base oils shipments from the US held firm despite the drop in consumption, with the higher volumes boosting their share of the country’s lower total supply.An extension of the trend is feasible if US base oils export prices remain at competitive levels versus supplies in other regions and versus supplies from domestic sources.But the steep deprecation of Argentina’s currency versus the US dollar could outweigh the benefit of those competitive prices and boost the attraction of maximising the procurement of supplies from the domestic market.The country's total base oils supply, or domestic production and imports combined, fell to around 15,000 cubic meters (13,800t) in December, government data showed.The volume fell from close to 19,000 cubic meters the previous month and cut fourth-quarter supply to around 42,000 cubic meters.The fourth-quarter volume fell from more than 60,000 cubic meters in the previous three months to the lowest since late-2020.The lower supply helped to avoid a build-up of surplus volumes in the face of weaker lube demand.More balanced supply-demand fundamentals in turn cushioned the impact of a likely drop in total supply requirements because of weaker demand.A rise in domestic or overseas suppliers’ share of those requirements would cushion further the impact of slower demand.Base oils imports accounted for a growing share of Argentina’s total supply in the third and fourth quarters of last year.Imports from the US accounted for a smaller share of total supply in the fourth quarter amid a pick-up in shipments from South Korea.A reversal of that trend could support a relatively steady flow of shipments from the US to Argentina over the coming months.The share of Argentina's December supplies that originated from the US already rebounded in the month of December..Argentina’s Dec lube demand falls
