Europe’s October Group I Exports Rise to Three-Month High

Europe’s Group I base oils exports to outlets outside the region rose to a three-month high in October, as higher shipments to Africa and a spot cargo to India and the Middle East removed surplus supplies from the market.

Total exports rose to more than 75,000 tonnes in October, up from less than 55,000 tonnes in September, government data showed.

The volume was the highest in three months and second-highest since January.

The rise in shipments coincided with tighter-than-expected Group I production in Europe, as a slump in Italy’s base oils output overlapped the unplanned shutdown of a Group I unit in Hungary.

The combined impact of lower regional production and higher exports cut Group I supply in Europe, helping to offset the effects of a seasonal slowdown in demand during the final months of the year.

The exports included a large cargo shipped from Greece to India and the UAE.

The cargo left Greece at end-October and reached India less than a month later.

The transit time was unusually fast because the shipment moved to India via the Suez Canal rather than routing around Africa.

The supplies consisted of Group I heavy neutrals.

The cargo lifted Greece’s total exports in October to an eight-month high and was booked before the unexpected shutdown of Hungary’s Group I plant following a refinery fire.

By drawing down Greece’s surplus volumes, the shipment could limit the country’s ability to cover additional Group I requirements within Europe because of lower output in Italy and Hungary.