The UK’s base oils supply stayed higher than usual in April for a second month, helping to cover firm consumption in the domestic and continental Europe markets.The UK’s base oils output of 29,000 tonnes in April fell from more than 34,000 tonnes the previous month, government data showed.The volume was still the second-highest in nine months.Higher base oils output helped to cover firm domestic demand and a pick-up in the country’s exports.Shipments to overseas markets recovered to more than 25,000 tonnes in April, up from unusually low volumes of less than 15,000 tonnes in February and in March.Exports to markets in the EU rebounded to a nine-month high and accounted for more than 45% of the total. The share was up from typical levels of less than 35% of total exports over the past year.Strong consumption in the UK and EU in turn trimmed the share of supplies available for other overseas markets like Africa.The trend mirrored a similar pattern throughout Europe, where Group I base oils supply showed signs of holding relatively firm in March and April.Europe’s Group I base oils exports to overseas markets outside the region still fell to a five-month low in April even with the steadier supply.The fall in shipments to more distant markets highlighted Europe’s more limited surplus Group I base oils supply, especially at a time of year when the region faced a seasonal pick-up in demand.Europe’s Group I supply tightened further through the rest of the second quarter of the year because of scheduled and unexpected plant shutdowns.The dynamic supported a rebound in Europe’s Group I base oils prices during the second quarter of the year.It also highlighted the need for buyers in overseas markets to line up alternative supply sources, and ideally, to consume more premium-grade base oils instead of Group I supplies..Italy’s April base oils output rises.Europe’s April Group III supply falls
The UK’s base oils supply stayed higher than usual in April for a second month, helping to cover firm consumption in the domestic and continental Europe markets.The UK’s base oils output of 29,000 tonnes in April fell from more than 34,000 tonnes the previous month, government data showed.The volume was still the second-highest in nine months.Higher base oils output helped to cover firm domestic demand and a pick-up in the country’s exports.Shipments to overseas markets recovered to more than 25,000 tonnes in April, up from unusually low volumes of less than 15,000 tonnes in February and in March.Exports to markets in the EU rebounded to a nine-month high and accounted for more than 45% of the total. The share was up from typical levels of less than 35% of total exports over the past year.Strong consumption in the UK and EU in turn trimmed the share of supplies available for other overseas markets like Africa.The trend mirrored a similar pattern throughout Europe, where Group I base oils supply showed signs of holding relatively firm in March and April.Europe’s Group I base oils exports to overseas markets outside the region still fell to a five-month low in April even with the steadier supply.The fall in shipments to more distant markets highlighted Europe’s more limited surplus Group I base oils supply, especially at a time of year when the region faced a seasonal pick-up in demand.Europe’s Group I supply tightened further through the rest of the second quarter of the year because of scheduled and unexpected plant shutdowns.The dynamic supported a rebound in Europe’s Group I base oils prices during the second quarter of the year.It also highlighted the need for buyers in overseas markets to line up alternative supply sources, and ideally, to consume more premium-grade base oils instead of Group I supplies..Italy’s April base oils output rises.Europe’s April Group III supply falls
