Italy’s base oils output fell in January while demand rose, triggering a fall in the country’s stocks to a seventeen-month low.Some spot supplies of Group I base oils from Italy were available at the start of the year even with the drop in output and inventories.But the volume of spot shipments was smaller than the same time a year earlier, when a swathe of cargoes moved from Italy to various overseas outlets throughout the first quarter of the year.That scenario is unlikely to repeat itself this year in the face of lower base oils stocks and the planned closure of one of Italy’s Group I base oils plants.Europe’s firmer base oils export prices reflected the tightening availability of surplus regional Group I supplies in recent weeks.The discount of Europe’s Group I export prices to domestic prices tightened this month to the narrowest since second-half 2022, ICIS data showed.Italy’s base oils output of 63,800t in January fell from 66,400t the previous month and from more than 90,000t the same month a year earlier, government data showed.The slowdown contrasted with higher domestic demand and firm export volumes in January to markets like Egypt and southeast Asia.With demand outpacing supply, Italy’s base oils stocks fell to close to 72,000t in January.The volume was down from around 88,000t in December and from more than 115,000t the same month a year earlier.The availability of spot supplies for export from Italy at the start of the year raised the prospect of extending the drop in inventories.Such a trend would tighten supply further ahead of an expected fall in output in the coming months once one of the country's base oils units is closed. .Europe’s Grp I market share falls in 2023.Europe’s Jan base oils exports mixed
Italy’s base oils output fell in January while demand rose, triggering a fall in the country’s stocks to a seventeen-month low.Some spot supplies of Group I base oils from Italy were available at the start of the year even with the drop in output and inventories.But the volume of spot shipments was smaller than the same time a year earlier, when a swathe of cargoes moved from Italy to various overseas outlets throughout the first quarter of the year.That scenario is unlikely to repeat itself this year in the face of lower base oils stocks and the planned closure of one of Italy’s Group I base oils plants.Europe’s firmer base oils export prices reflected the tightening availability of surplus regional Group I supplies in recent weeks.The discount of Europe’s Group I export prices to domestic prices tightened this month to the narrowest since second-half 2022, ICIS data showed.Italy’s base oils output of 63,800t in January fell from 66,400t the previous month and from more than 90,000t the same month a year earlier, government data showed.The slowdown contrasted with higher domestic demand and firm export volumes in January to markets like Egypt and southeast Asia.With demand outpacing supply, Italy’s base oils stocks fell to close to 72,000t in January.The volume was down from around 88,000t in December and from more than 115,000t the same month a year earlier.The availability of spot supplies for export from Italy at the start of the year raised the prospect of extending the drop in inventories.Such a trend would tighten supply further ahead of an expected fall in output in the coming months once one of the country's base oils units is closed. .Europe’s Grp I market share falls in 2023.Europe’s Jan base oils exports mixed
