May shipments dip from Spain’s Cartagena

Exports of premium-grade base oils from the Spanish port of Cartagena remained at firm levels even as volumes edged down in May for a second month.

Shipments of 39,350t in May eased from 44,300t the previous month, according to Port Authority of Cartagena (PAC) data.

Even with the slowdown, total exports of more than 215,000t in the first five months of the year were up 36pc from around 158,000t during the same period a year ago.

The rise in shipments likely reflected steady base oils output at Cartagena this year. By contrast, planned plant maintenance work slashed production levels during the second quarter of 2021.

The trend of steady supplies following maintenance last year has repeated itself in other markets in Europe and in other regions.

Premium-grade base oil prices have reflected the more balanced supply fundamentals by rising less steeply than Group I and Group II base oils in recent months.

The sharp rebound in exports from Cartagena has begun to show signs of slowing.

The export volume in May was just below average levels of around 41,000 t/month over the past year. But it was well down from more than 48,000 t/month over the past six months.