S Africa’s March base oil imports rise

South Africa’s base oil imports rose in March to a five-month high amid a pick-up in shipments from US and Netherlands.

Imports of 26,710 kilolitres (20,720t) in March rose from 24,170kl the previous month and from a five-year low of less than 10,600kl in January, government data showed.

Even with the rise in shipments in March, total imports of 61,470kl in the first three months of the year were down 19pc from the fourth quarter of last year and the lowest since third-quarter 2020.

The slowdown in imports has coincided with weak industrial production growth in South Africa over the past six months. But automobile sales have held firm, rising in 13 out of the past 14 months to April.

The country’s March import volume included some 2,780kl of supplies from countries like Malaysia that are key producers of Group III base oils. The grade is a key feedstock for high-end engine oils.

The March imports also included 13,610kl from the Netherlands. The volume was the highest in 17 months and accounted for more than 50pc of South Africa’s total imports. The share was higher than usual.

Imports of 6,790kl from the US were the highest in five months. By contrast, supplies of less than 180kl from South Korea were the lowest in more than six years.