S Africa’s August base oils imports surge

South Africa’s base oils imports rose in August to a 14-month high amid a surge in shipments from Saudi Arabia and UK.

Total imports of 40,110 kilolitres (35,530t) in August rose from 28,020kl in July and by 27pc from year-earlier levels, government data showed.

The year-on-year increase was the first in four months.

The volume was the highest since June 2021 and up from more typical levels of less than 27,000 kl/month over the past year.

The rise in imports coincided with signs of improving supply and relatively firm demand.

The country’s economy continued to expand even in the face of rising interest rates, high inflation and persistent power loadshedding.

Automobile sales rose in September for a ninth straight month, even if at a slightly slower pace than in August.

Motor vehicle manufacturing was a key factor behind the rise in South Africa’s industrial production in August for a second month.  

Slowing even if positive economic growth coincided with an improvement in base oils supply.

The rise in availability partly reflected a similar slowdown in economic growth and lube demand in other markets.

It also reflected easing supply tightness in markets like Europe because of a rise in base oils production.

Base oils imports from the UK rose in August to a 20-month high of 7,810kl. The pick-up in supply followed a rise in the UK’s base oils output in July to a five-month high.

Supply got an additional boost from a pick-up in shipments from less regular sources.

Imports of 4,920kl from Saudi Arabia were the first from that country in four months and the second-highest volume on record. The highest volume had been in April.

Before this year, imports from Saudi Arabia had been sporadic and low.