The Netherlands’ base oils output almost halted in March because of plant maintenance work that extended through the month.Output fell to just 1,000 tonnes in March, down from an already-low 44,000 tonnes the previous month, government data showed.The volume was the lowest since the beginning of 2019.The scheduled maintenance work on a Group II unit in the Netherlands began in February and continued through to April.A rise in Europe’s imports from key sources of Group II base oils helped to cushion the drop in regional supply.Imports of more than 61,000 tonnes from those markets in March were the highest in six months amid a rebound in shipments from the US.Seasonally slow demand in Europe and blenders’ preference to maintain low inventories curbed further the impact of lower supply.Europe’s Group II base oils prices trended lower versus vacuum gasoil prices and held steady relative to Group I price during the first quarter of the year even with the drop in premium-grade supplies.The steady price levels suggested that lower supply and lower regional demand left fundamentals relatively balanced during that period.The Netherlands’ total supply, or output and imports combined, still lagged demand, or domestic consumption and exports combined, for a second month in March.But the shortfall narrowed to 12,000 tonnes, from 17,000 tonnes the previous month.Europe’s Group II prices strengthened relative to VGO so far in the second quarter of the year. But they weakened relative to Group I prices.The more mixed price levels suggested that fundamentals remained relatively balanced as a seasonal pick-up in demand balanced out a recovery in supply following the restart of the Group II unit in the Netherlands.The firmer Group I prices relative to Group II prices by contrast reflected the tighter availability of Group I supplies..Italy’s March lube demand falls.Spain’s March lube demand falls.UK’s March base oils supply rises
The Netherlands’ base oils output almost halted in March because of plant maintenance work that extended through the month.Output fell to just 1,000 tonnes in March, down from an already-low 44,000 tonnes the previous month, government data showed.The volume was the lowest since the beginning of 2019.The scheduled maintenance work on a Group II unit in the Netherlands began in February and continued through to April.A rise in Europe’s imports from key sources of Group II base oils helped to cushion the drop in regional supply.Imports of more than 61,000 tonnes from those markets in March were the highest in six months amid a rebound in shipments from the US.Seasonally slow demand in Europe and blenders’ preference to maintain low inventories curbed further the impact of lower supply.Europe’s Group II base oils prices trended lower versus vacuum gasoil prices and held steady relative to Group I price during the first quarter of the year even with the drop in premium-grade supplies.The steady price levels suggested that lower supply and lower regional demand left fundamentals relatively balanced during that period.The Netherlands’ total supply, or output and imports combined, still lagged demand, or domestic consumption and exports combined, for a second month in March.But the shortfall narrowed to 12,000 tonnes, from 17,000 tonnes the previous month.Europe’s Group II prices strengthened relative to VGO so far in the second quarter of the year. But they weakened relative to Group I prices.The more mixed price levels suggested that fundamentals remained relatively balanced as a seasonal pick-up in demand balanced out a recovery in supply following the restart of the Group II unit in the Netherlands.The firmer Group I prices relative to Group II prices by contrast reflected the tighter availability of Group I supplies..Italy’s March lube demand falls.Spain’s March lube demand falls.UK’s March base oils supply rises
