Italy’s base oils output was steady in July, holding in a narrow range that it has maintained since the start of the year.Output of 57,600 tonnes in July edged down from 60,300 tonnes the previous month, government data showed.The volume stayed within a 57,000-65,100 tonnes/month range it has held in since January.The country’s steady output and its rising base oils exports to markets in Europe provided a key support behind the region’s firm Group I supply so far this year.Europe’s Group I supply held firm despite the closure of one of Italy’s two virgin base oils units earlier this year.The frequent shutdown of one of Italy’s base oils units in recent years curbed the impact of the plant closure.Italy’s base oils output exceeded the 65,000 tonne/month level just two times since May 2023, well before this year’s plant closure.Italy’s base oils output of close to 118,000 tonnes in June and July combined was up 65% from 71,200 tonnes during the same period last year.The lower output reflected the impact of a shutdown for maintenance work at that time.Europe’s Group I base oils prices rose strongly relative to feedstock prices, relative to premium-grade prices and relative to other regions from the end of first quarter of the year in response tighter supply-demand fundamentals.Italy’s steady base oils output and Europe’s firm Group I base oils supply suggested the stronger demand could have instead reflected the impact of tighter availability of other base oils grades such as Group II base oils.Europe’s Group II base oils supply fell in first-half 2024 because of maintenance work on the region’s sole Group II unit.With the maintenance work completed several months ago, Europe’s Group II supply is likely to be higher during the second half of the year.Higher Group II supply would curb the need for blenders to seek alternative grades such as Group I base oils. .Europe’s June Grp I exports extend fall.UK’s June base oils output rises.Italy’s July lube demand rises
Italy’s base oils output was steady in July, holding in a narrow range that it has maintained since the start of the year.Output of 57,600 tonnes in July edged down from 60,300 tonnes the previous month, government data showed.The volume stayed within a 57,000-65,100 tonnes/month range it has held in since January.The country’s steady output and its rising base oils exports to markets in Europe provided a key support behind the region’s firm Group I supply so far this year.Europe’s Group I supply held firm despite the closure of one of Italy’s two virgin base oils units earlier this year.The frequent shutdown of one of Italy’s base oils units in recent years curbed the impact of the plant closure.Italy’s base oils output exceeded the 65,000 tonne/month level just two times since May 2023, well before this year’s plant closure.Italy’s base oils output of close to 118,000 tonnes in June and July combined was up 65% from 71,200 tonnes during the same period last year.The lower output reflected the impact of a shutdown for maintenance work at that time.Europe’s Group I base oils prices rose strongly relative to feedstock prices, relative to premium-grade prices and relative to other regions from the end of first quarter of the year in response tighter supply-demand fundamentals.Italy’s steady base oils output and Europe’s firm Group I base oils supply suggested the stronger demand could have instead reflected the impact of tighter availability of other base oils grades such as Group II base oils.Europe’s Group II base oils supply fell in first-half 2024 because of maintenance work on the region’s sole Group II unit.With the maintenance work completed several months ago, Europe’s Group II supply is likely to be higher during the second half of the year.Higher Group II supply would curb the need for blenders to seek alternative grades such as Group I base oils. .Europe’s June Grp I exports extend fall.UK’s June base oils output rises.Italy’s July lube demand rises
