Europe’s Group III base oils supply rose to a four-month high in March, boosting volumes ahead of a seasonal pick-up in regional requirements in the second quarter of the year.Total supply of more than 145,000 tonnes in March rose from less than 130,000 tonnes the previous month to the highest since last November, government and port data showed..Supply got further support at the start of the second quarter following unusually large exports from Indonesia to Europe in March.The expected arrival of those supplies in the second quarter of the year coincided with a rise in shipments from Spain to northwest Europe in March and April.Rising supplies from Spain and southeast Asia contrasted with signs of a slowdown in the flow of shipments from the Middle East reaching Europe at the start of the second quarter.The drop in shipments coincided with Group III plant maintenance work in the Middle East at around the same time.The flow of shipments reaching Europe then showed signs of reviving from second-half May.The dynamic pointed to tighter availability of Group III supplies without the full set of OEM approvals at the start of the second quarter of the year, and more readily-available supplies with the full set of OEM approvals.The tighter availability coincided with a drop in the premium of the high end of Europe’s Group III 4cSt base oils price over the low end of the 4cSt price in the month to mid-May to its narrowest since early March.Europe’s Group III base oils prices also firmed relative to other base oils grades and relative to feedstock prices from the end of the first quarter of the year.But Group III prices remained weak relative to Group I and Group II base oils even with the tighter supply at the start of the second quarter.The low prices pointed to sufficient availability of supply even with plant maintenance work in the Middle East.The low prices also increased their competitiveness relative to Group I and Group II base oils, raising the prospect of boosting demand for the premium-grade base oils..US’ March base oils imports rise.S Korea’s March exports to US edge down
