Europe’s Group III base oils supply rose to more typical levels in January as a pick-up in shipments from Spain countered a drop in imports from northeast Asia.Supply rose even amid a seasonal slowdown in demand at the start of the year, as well as increasingly weak prices for base oils without the full set of OEM approvals.The rise in supply lagged the rebound in US Group III base oils imports in January amid signs of more balanced fundamentals in that market for the premium-grade base oils.Europe’s total supply of around 120,000 tonnes in January rose from less than 110,000 tonnes in December, government and shipping data showed..The volume still lagged typical supplies of more than 125,000 tonnes/month in 2024.Supply got a boost in January from a recovery in shipments from Spain to a four-month high.Europe also continued to take delivery of a steady flow of supplies from Indonesia.Spain and Indonesia are key sources of Group III base oils with the full set of OEM approvals.The premium of the high end of Europe’s Group III base oils price-range over the low end of the price-range widened to a record-high in January.It then widened further over the following weeks. The wide premium boosted the attraction of moving to Europe more shipments with the full set of OEM approvals.But shipments from Spain slipped in February and remained lower so far in March.A surge in exports from Indonesia to Europe in January raised the prospect of cushioning any slowdown.Those supplies showed signs of reaching Europe in February and in first-half March.The steep discount of the low end of Europe’s Group III base oils price-range by contrast boosted the incentive for buyers to maximise consumption of supplies without the full set of OEM approvals.The lower price also incentivized suppliers in markets like the Middle East to move more shipments to other markets like the US.Group III base oils prices in the US were at a steep discount to Europe Group III prices throughout most of last year.But the discount narrowed sharply from the end of the third quarter. It then flipped to a premium to Europe prices in March for the first time in almost a year.The firmer price added to the attraction for overseas refiners to move more shipments to the US rather than Europe..Italy’s January lube demand falls.US’ January base oils imports rise.S Korea’s Feb base oils exports rebound
Europe’s Group III base oils supply rose to more typical levels in January as a pick-up in shipments from Spain countered a drop in imports from northeast Asia.Supply rose even amid a seasonal slowdown in demand at the start of the year, as well as increasingly weak prices for base oils without the full set of OEM approvals.The rise in supply lagged the rebound in US Group III base oils imports in January amid signs of more balanced fundamentals in that market for the premium-grade base oils.Europe’s total supply of around 120,000 tonnes in January rose from less than 110,000 tonnes in December, government and shipping data showed..The volume still lagged typical supplies of more than 125,000 tonnes/month in 2024.Supply got a boost in January from a recovery in shipments from Spain to a four-month high.Europe also continued to take delivery of a steady flow of supplies from Indonesia.Spain and Indonesia are key sources of Group III base oils with the full set of OEM approvals.The premium of the high end of Europe’s Group III base oils price-range over the low end of the price-range widened to a record-high in January.It then widened further over the following weeks. The wide premium boosted the attraction of moving to Europe more shipments with the full set of OEM approvals.But shipments from Spain slipped in February and remained lower so far in March.A surge in exports from Indonesia to Europe in January raised the prospect of cushioning any slowdown.Those supplies showed signs of reaching Europe in February and in first-half March.The steep discount of the low end of Europe’s Group III base oils price-range by contrast boosted the incentive for buyers to maximise consumption of supplies without the full set of OEM approvals.The lower price also incentivized suppliers in markets like the Middle East to move more shipments to other markets like the US.Group III base oils prices in the US were at a steep discount to Europe Group III prices throughout most of last year.But the discount narrowed sharply from the end of the third quarter. It then flipped to a premium to Europe prices in March for the first time in almost a year.The firmer price added to the attraction for overseas refiners to move more shipments to the US rather than Europe..Italy’s January lube demand falls.US’ January base oils imports rise.S Korea’s Feb base oils exports rebound
