Argentina’s base oils supply recovered in February amid a simultaneous pick-up in domestic output and imports.Even so, shipments from overseas markets continued to account for a shrinking share of Argentina’s base oils supply so far this year.The country's total base oils supply, or domestic output and imports combined, rose to almost 18,000 cubic meters (15,800 tonnes) in February, government data showed..The volume rose from around 8,000 cubic meters in January and repeated a recent trend of high supply one month followed by a dip in supply the next month.Imports accounted for 45% of total base oils supply in February, and 33% of total supply in the first two months of the year.The share compared with less than 40% of total supply in second-half 2024 and less than 50% of total supply during the first half of the year.Imports by contrast accounted for most of Argentina’s supply in 2022 and 2023.Argentina’s growing reliance on its domestic base oils supply over the past year coincided with a sustained fall in the country’s lube consumption.Supply from domestic sources enabled buyers to procure smaller volumes more frequently and to cut their exposure to exchange-rate volatility.Recent signs of a recovery in Argentina’s lube consumption could boost buyers’ willingness to hold larger stocks and to procure more supplies from overseas markets.Any supply shortfall in response to rising demand would add to buyers’ need to secure additional volumes from overseas markets.The US is Argentina’s largest overseas base oils supplier.Any pick-up in requirements for overseas supplies should duly increase demand for shipments from the US.Concern about the imposition and impact of any new trade-related taxes in the coming weeks could conversely incentivize buyers to hold back from seeking additional volumes from the US.Any such taxes could impact costs, trade flows and Argentina’s economic recovery.The country’s growing self-sufficiency with its base oils supply over the past year inadvertently left it better prepared for such a scenario of minimizing its imports..US January exports to S America stay low.Latin America's Jan lube demand rises.Argentina’s Jan base oils supply falls
Argentina’s base oils supply recovered in February amid a simultaneous pick-up in domestic output and imports.Even so, shipments from overseas markets continued to account for a shrinking share of Argentina’s base oils supply so far this year.The country's total base oils supply, or domestic output and imports combined, rose to almost 18,000 cubic meters (15,800 tonnes) in February, government data showed..The volume rose from around 8,000 cubic meters in January and repeated a recent trend of high supply one month followed by a dip in supply the next month.Imports accounted for 45% of total base oils supply in February, and 33% of total supply in the first two months of the year.The share compared with less than 40% of total supply in second-half 2024 and less than 50% of total supply during the first half of the year.Imports by contrast accounted for most of Argentina’s supply in 2022 and 2023.Argentina’s growing reliance on its domestic base oils supply over the past year coincided with a sustained fall in the country’s lube consumption.Supply from domestic sources enabled buyers to procure smaller volumes more frequently and to cut their exposure to exchange-rate volatility.Recent signs of a recovery in Argentina’s lube consumption could boost buyers’ willingness to hold larger stocks and to procure more supplies from overseas markets.Any supply shortfall in response to rising demand would add to buyers’ need to secure additional volumes from overseas markets.The US is Argentina’s largest overseas base oils supplier.Any pick-up in requirements for overseas supplies should duly increase demand for shipments from the US.Concern about the imposition and impact of any new trade-related taxes in the coming weeks could conversely incentivize buyers to hold back from seeking additional volumes from the US.Any such taxes could impact costs, trade flows and Argentina’s economic recovery.The country’s growing self-sufficiency with its base oils supply over the past year inadvertently left it better prepared for such a scenario of minimizing its imports..US January exports to S America stay low.Latin America's Jan lube demand rises.Argentina’s Jan base oils supply falls
