Argentina’s base oils supply rose in March as domestic output surged to a twenty-month high.Higher output covered more of the country’s requirements, cutting its need for additional supplies from overseas markets.Higher output also coincided with and helped to prolong a surge in Argentina’s base oils exports that began last October.The rise in output and exports pointed to moves to tap tight global supply and high prices for Group I base oils.Any extension or expansion of those moves could support a revival in domestic demand for supplies of premium-grade base oils from overseas markets.Argentina’s base oils output of 17,500 cubic meters (15,500 tonnes) in March rose from less than 10,000 cubic meters in February to the highest since mid-2023..The higher output lifted total production to close to 35,000 cubic meters in the first quarter of the year. The volume was up 65% and rose for a fourth straight quarter from year-earlier levels.The surge in output far outpaced the 1% rise in Argentina’s lube demand in the first three months of the year, as well as sliding consumption throughout all of last year.Rising output and falling demand cut the country’s requirements for base oils imports. These fell in the first three months of the year for an eighth straight quarter.Falling lube demand last year boosted the attraction for blenders to procure smaller volumes more regularly from local sources rather than larger volumes from overseas markets.The dynamic could change this year if Argentina’s lube demand were to extend its revival.An unusual and sustained surge in Argentina’s base oils exports also suggested that output rose more to tap strong overseas demand than to boost supplies for the domestic market.Any expansion of that rise in exports would further cut domestic supplies available for the local market.Lower domestic supplies could in turn support stronger buying interest in base oils shipments from overseas markets. .Argentina’s March base oils/lube demand mixed
Argentina’s base oils supply rose in March as domestic output surged to a twenty-month high.Higher output covered more of the country’s requirements, cutting its need for additional supplies from overseas markets.Higher output also coincided with and helped to prolong a surge in Argentina’s base oils exports that began last October.The rise in output and exports pointed to moves to tap tight global supply and high prices for Group I base oils.Any extension or expansion of those moves could support a revival in domestic demand for supplies of premium-grade base oils from overseas markets.Argentina’s base oils output of 17,500 cubic meters (15,500 tonnes) in March rose from less than 10,000 cubic meters in February to the highest since mid-2023..The higher output lifted total production to close to 35,000 cubic meters in the first quarter of the year. The volume was up 65% and rose for a fourth straight quarter from year-earlier levels.The surge in output far outpaced the 1% rise in Argentina’s lube demand in the first three months of the year, as well as sliding consumption throughout all of last year.Rising output and falling demand cut the country’s requirements for base oils imports. These fell in the first three months of the year for an eighth straight quarter.Falling lube demand last year boosted the attraction for blenders to procure smaller volumes more regularly from local sources rather than larger volumes from overseas markets.The dynamic could change this year if Argentina’s lube demand were to extend its revival.An unusual and sustained surge in Argentina’s base oils exports also suggested that output rose more to tap strong overseas demand than to boost supplies for the domestic market.Any expansion of that rise in exports would further cut domestic supplies available for the local market.Lower domestic supplies could in turn support stronger buying interest in base oils shipments from overseas markets. .Argentina’s March base oils/lube demand mixed
