Argentina’s base oils supply fell to a three-month low in April as imports almost ground to a halt.The subsequent and growing reliance on domestic base oils output to cover domestic requirements coincided with a sustained rise in Argentina’s base oils exports.But domestic output was insufficient to cover both domestic demand and high export volumes.Any extension of Argentina’s recent surge in base oils exports duly raised the prospect of a pick-up in imports to meet the supply shortfall.Base oils output of 11,800 cubic meters (10,500 tonnes) in April fell from more than 17,500 cubic meters the previous month, government data showed.The volume still exceeded typical monthly output levels of around 10,000 cubic meters/month in 2024.Firm output volumes contrasted with a slump in base oils imports to less than 300 cubic meters in April, down from typical levels of close to 7,000 cubic meters/month in 2024.Domestic output already accounted for a growing share of Argentina’s base oils supply in 2024 amid dwindling import volumes..The dynamic pointed to a growing preference among buyers for supplies from domestic rather than overseas sources at a time when Argentina’s lube consumption faced a sustained contraction.The dynamic became even more pronounced from the start of this year as output extended its rise and imports slumped, even with steadier lube consumption.A surge in Argentina’s base oils exports since late last year compounded the disconnect between supply and demand.Argentina’s base oils stocks duly fell in April to an eighteen-month low.Any moves to maintain higher export volumes would in turn increase the need for a pick-up in base oils imports to maintain balanced supplies.The US would be the key beneficiary of any such pick-up in requirements from overseas markets..Argentina’s April base oils/lube demand mixed
Argentina’s base oils supply fell to a three-month low in April as imports almost ground to a halt.The subsequent and growing reliance on domestic base oils output to cover domestic requirements coincided with a sustained rise in Argentina’s base oils exports.But domestic output was insufficient to cover both domestic demand and high export volumes.Any extension of Argentina’s recent surge in base oils exports duly raised the prospect of a pick-up in imports to meet the supply shortfall.Base oils output of 11,800 cubic meters (10,500 tonnes) in April fell from more than 17,500 cubic meters the previous month, government data showed.The volume still exceeded typical monthly output levels of around 10,000 cubic meters/month in 2024.Firm output volumes contrasted with a slump in base oils imports to less than 300 cubic meters in April, down from typical levels of close to 7,000 cubic meters/month in 2024.Domestic output already accounted for a growing share of Argentina’s base oils supply in 2024 amid dwindling import volumes..The dynamic pointed to a growing preference among buyers for supplies from domestic rather than overseas sources at a time when Argentina’s lube consumption faced a sustained contraction.The dynamic became even more pronounced from the start of this year as output extended its rise and imports slumped, even with steadier lube consumption.A surge in Argentina’s base oils exports since late last year compounded the disconnect between supply and demand.Argentina’s base oils stocks duly fell in April to an eighteen-month low.Any moves to maintain higher export volumes would in turn increase the need for a pick-up in base oils imports to maintain balanced supplies.The US would be the key beneficiary of any such pick-up in requirements from overseas markets..Argentina’s April base oils/lube demand mixed
