US base oils exports to Latin America rose to a four-month high in January as shipments to Brazil surged.The region’s lube demand held firm late last year and early this year. The trend helped to keep its base oils supply fundamentals relatively balanced and sustain steady import requirements..Americas’ Dec lube demand holds firm.US producers were well placed to tap that firm lube demand and cover buyers’ requirements for overseas supplies.The firmer fundamentals also curbed downward price pressure, especially compared with other markets like Europe and India.The trend added to the attraction of moving more shipments to Latin America and showed signs of extending into February.Tighter surplus availability in Asia-Pacific late last year and early this year also curbed arbitrage flows from that region to Latin America..Asia’s December base oils exports fall.The slowdown in arbitrage shipments added to buyers’ reliance on supplies from the US to cover their requirements.The firmer demand in turn facilitated US producers’ moves to clear surplus supplies that had built up late last year.Base oils exports to Latin America, excluding Mexico, came to almost 491,000bl (69,100t) in January, government data showed. The volume rose from less than 375,000bl the previous month to the highest since September..Exports rose for the seventh time in eight months from year-earlier levels, reflecting the sustained rise in shipments to the region.Most than 60pc of the January volume moved to Brazil. The share was up from more typical levels of close to 50pc of monthly shipments to Latin America.The jump in shipments contrasted with late 2020 and early 2021 when US exports to Brazil slowed sharply as the country worked through a supply-overhang.Brazil's avoidance of a large supply overhang and firm lube demand at the beginning of this year facilitated the pick-up in shipments from the US..Brazil's Jan base oil imports hold steady.The higher shipment volumes to Brazil showed signs of extending into February..Argentina’s January lube demand rises
