South Africa’s May base oil imports fall

South Africa’s base oil imports fell in May to a four-month low as shipments from overseas suppliers dwindled or moved to other markets instead.

Base oil imports of 23,240 kilolitres (20,590t) in May fell from 36,820kl the previous month and by 24pc from year-earlier levels, government data showed.

The contraction pulled imports down to 121,520kl in the first five months of the year. The volume was down 9pc from 132,450kl during the same period last year.

Imports fell even as South Africa’s economy showed signs of extending its recovery through the second quarter of the year.

The recovery faced similar headwinds to other markets, including high inflation, rising fuel prices, supply-chain disruptions and the prospect of power shortages.

Devastating floods in KwaZulu-Natal in April exacerbated those disruptions, including extensive damage to Toyota’s automobile plant in Durban.

Industrial production and manufacturing sentiment still improved in May from the previous month.

The country’s automobile sales rose in June for a sixth month. South Africa's purchasing managers’ index rose in June to its highest in more than a year.

The slowdown in South Africa’s base oil imports showed signs of reflecting external factors as well.

The sustained slowdown in US shipments to South Africa contrasted with a surge in its base oil exports to Europe this year.

The drop in supplies from South Korea to South Africa in the first five months of the year coincided with a sustained slowdown in exports from the northeast Asian country.

Supplies were also lower from the Netherlands, whose base oils output fell sharply in the first four months of the year.