South Africa’s base oils imports fell to an eleven-month low in December amid a drop in shipments from the Netherlands and US. The fall in supplies coincided with expectations of slowing demand in South Africa as worsening power shortages impact everything from food production to car manufacturing.South Africa has become an increasingly key base oils outlet for markets like the Netherlands and more recently from sources like Saudi Arabia.A slowdown in South Africa’s base oils requirements would leave overseas suppliers relying on expanding their market share to boost shipment volumes to the country.South Africa’s base oils imports of less than 21,400 kilolitres (18,930t) in December fell from almost 37,000kl the previous month, government data showed.The volume was the lowest since the start of 2021..The steady flow of imports during the rest of the year lifted total shipments to 343,420kl in 2022. The volume edged up from less than 340,000kl in 2021 to a five-year high.Imports rose even as South Africa’s economy faced pressure from rising interest rates, high inflation and frequent power shortages.The economic slowdown is set to extend into this year.The country’s central bank raised interest rates last month for the eighth time since late 2021. It also cut its forecast for South Africa’s economic growth this year to 0.3pc, from 1.1pc previously.Slower demand at the end of last year coincided with signs of tighter availability of base oils supplies in markets like the US.Low US base oils production continued to curb its export volumes during the fourth quarter of the year..US' Dec base oils exports to Africa fall.South Africa’s imports of 4,470kl from the US in December fell from more than 8,000kl the previous month.Imports from the Netherlands also slumped. Shipments of little more than 5,000kl in December were the lowest in eleven months.The country is South Africa’s largest source of base oils, with typical volumes of more than 11,000 kl/month.The Netherlands’ base oils exports dipped to a sixteen-month low in November, while the country's inventories fell to a thirteen-month low..Netherlands’ Nov base oils/lube output holds firm
