US’ Aug Group III base oils imports fall

US Group III base oils imports fell in August amid a dip in shipments from the UAE.

Base oils imports from other regular suppliers were relatively steady.

Imports fell to 1.15mn bl (162,170t) in August, down from an 11-month high of 1.45mn bl the previous month, government data showed.

Imports also fell from year-earlier levels for the first time in four months.

Even with the slowdown, US base oils imports of 8.99mn bl in the first eight months of the year were up 10pc from 8.21mn bl during the same period last year.

US Group III base oils imports rose to meet strong domestic demand. Consumption was firm even as high motor fuel prices during the summer months cut gasoline demand.

Consumption would have been even higher but for a shortage of additives that slowed the production of some types of engine oils.

Strong demand supported firm base oils prices at a premium to prices in other markets, especially during the third quarter of the year.

Base oils imports slowed in August mostly because of a dip in shipments from the UAE to less than 1,000bl. The volume was down from a record high of more than 287,000bl the previous month.

Imports from South Korea fell in August to a seven-month low of 332,620bl, from more than 420,000bl the previous month.

The volume was still relatively firm, especially compared with a sustained dip in imports from the northeast Asian country last year.

Total shipments of 2.87mn bl from South Korea so far this year were up more than 35pc from 2.11mn bl during the first eight months of last year.

Asia-Pacific producers have sought to move more premium-grade supplies to markets like the Americas and Europe as weaker-than-expected Chinese demand kept pressure on prices in their region.