Europe’s Group III base oils supply fell back to more typical levels in April following a drop in shipments from the Middle East and Asia, as well as from within the region.Total supply came to less than 145,000 tonnes in April, down from close to 190,000 tonnes the previous month, government and port data showed.The March volume was the highest in two years and helped to balance out a drop in supplies in the first two months of the year.The April volume was similar to typical levels of around 143,000 tonnes/month over the past year.The drop in supplies from March contrasted with a pick-up in US imports of premium-grade base oils in April to a one-year high.The rise in shipments left US base oil imports exceeding Europe’s Group III supply for the seventh time in eight months.The US’ higher volumes coincided with US Group III prices maintaining a steep premium to Europe Group III prices during the seven months to end-March.The higher premium boosted overseas refiners’ incentive to move more shipments to the US rather than Europe.The dynamic changed from early April following a slump in US Group III prices.The move left US prices at a steep discount to Europe Group III prices.Lower US prices and weaker demand for overseas supplies boosted refiners’ incentive to move more shipments to Europe instead over the coming months.A seasonal pick-up in Europe’s base oils demand in the second quarter, as well as competitive Group III prices relative to other grades, boosted the attraction of such a move.But Europe’s low Group III prices relative to feedstock costs pointed to the product’s still-weak supply-demand fundamentals, complicating any decision to increase shipments to the region..US’ April base oils imports mixed.S Korea’s April exports to Americas fall
Europe’s Group III base oils supply fell back to more typical levels in April following a drop in shipments from the Middle East and Asia, as well as from within the region.Total supply came to less than 145,000 tonnes in April, down from close to 190,000 tonnes the previous month, government and port data showed.The March volume was the highest in two years and helped to balance out a drop in supplies in the first two months of the year.The April volume was similar to typical levels of around 143,000 tonnes/month over the past year.The drop in supplies from March contrasted with a pick-up in US imports of premium-grade base oils in April to a one-year high.The rise in shipments left US base oil imports exceeding Europe’s Group III supply for the seventh time in eight months.The US’ higher volumes coincided with US Group III prices maintaining a steep premium to Europe Group III prices during the seven months to end-March.The higher premium boosted overseas refiners’ incentive to move more shipments to the US rather than Europe.The dynamic changed from early April following a slump in US Group III prices.The move left US prices at a steep discount to Europe Group III prices.Lower US prices and weaker demand for overseas supplies boosted refiners’ incentive to move more shipments to Europe instead over the coming months.A seasonal pick-up in Europe’s base oils demand in the second quarter, as well as competitive Group III prices relative to other grades, boosted the attraction of such a move.But Europe’s low Group III prices relative to feedstock costs pointed to the product’s still-weak supply-demand fundamentals, complicating any decision to increase shipments to the region..US’ April base oils imports mixed.S Korea’s April exports to Americas fall