Spain Cartagena June shipments rise

Exports of premium-grade base oils from the Spanish port of Cartagena rose in June to a three-month high, adding to healthy availability in the European market.

Shipments of more than 47,000t in June rose from less than 39,500t the previous month, according to Port Authority of Cartagena (PAC) data.

The rise in shipments lifted total exports from the port to more than 263,000t in the first half of the year. The volume was up by almost half from less than 180,000t during the same period last year.

The lower exports during first-half 2021 coincided with Group III plant maintenance work in Spain during that period. The work included expanding production capacity of the plant.

There was no such plant maintenance work during first-half 2022.

The rise in volumes this year mirrored a similar pick-up in supplies from another key premium-grade base oils producer in Europe.

The improvement in supply of premium-grade base oils contrasted with unexpectedly tight availability of Group I base oils in the region. Those supplies were tighter because of prolonged maintenance work and a drop in shipments from Russia.

European Group III base oil prices have reflected the diverging supply trends between Group III and Group I base oils.

Prices for both grades have risen sharply this year. But the premium of Group III to Group I base oils has slipped to its narrowest level in a year.