Argentina’s base oils supply rose to a nine-month high in June as a rebound in imports added to firm domestic production volumes.Imports of more than 14,000 cubic meters (12,800 tonnes) in June rose from less than 500 cubic meters the previous month, government data showed.The volume was the highest since last September.Total supply, or domestic output and imports combined, duly rose to more than 23,000 cubic meters in June and to more than 54,000 cubic meters in the second quarter of the year.The volume rose from less than 42,000 cubic meters in the three months to end-March to the highest since the third quarter of last year.The pick-up in supply contrasted with a sustained fall in the country’s lube demand and production.The disconnect triggered a rise in base oils stocks to the highest this year, at a time when blenders have sought to maintain lower inventories.The rise in supply and inventories could trigger a drop in base oils demand as buyers move to trim their stock levels.It could conversely support steady base oils demand, with buyers comfortable holding larger-than-usual inventories as a buffer against any disruptions to shipments from the US during the third quarter of the year.Forecasts of an unusually active Atlantic hurricane season this year added to the attraction of holding larger stocks.Stock-building moves in the US already tightened surplus supply in that market.Argentina usually relies on imports for more than half its base oils supplies, and on US shipments for more than 70% of those imports.The country’s larger base oils stocks in June cut that exposure and buyers' urgency to add to those supplies.The increased flexibility instead gave buyers the leverage to eye opportunities for supplies from more distant markets and with a longer shipment time to reach the country..Argentina’s June lube demand falls.Brazil’s June lube demand extends rise
Argentina’s base oils supply rose to a nine-month high in June as a rebound in imports added to firm domestic production volumes.Imports of more than 14,000 cubic meters (12,800 tonnes) in June rose from less than 500 cubic meters the previous month, government data showed.The volume was the highest since last September.Total supply, or domestic output and imports combined, duly rose to more than 23,000 cubic meters in June and to more than 54,000 cubic meters in the second quarter of the year.The volume rose from less than 42,000 cubic meters in the three months to end-March to the highest since the third quarter of last year.The pick-up in supply contrasted with a sustained fall in the country’s lube demand and production.The disconnect triggered a rise in base oils stocks to the highest this year, at a time when blenders have sought to maintain lower inventories.The rise in supply and inventories could trigger a drop in base oils demand as buyers move to trim their stock levels.It could conversely support steady base oils demand, with buyers comfortable holding larger-than-usual inventories as a buffer against any disruptions to shipments from the US during the third quarter of the year.Forecasts of an unusually active Atlantic hurricane season this year added to the attraction of holding larger stocks.Stock-building moves in the US already tightened surplus supply in that market.Argentina usually relies on imports for more than half its base oils supplies, and on US shipments for more than 70% of those imports.The country’s larger base oils stocks in June cut that exposure and buyers' urgency to add to those supplies.The increased flexibility instead gave buyers the leverage to eye opportunities for supplies from more distant markets and with a longer shipment time to reach the country..Argentina’s June lube demand falls.Brazil’s June lube demand extends rise