US base oils imports from markets with Group III production held firm in July for a second month even with less competitive domestic prices and weak domestic demand.Total imports of 1.24 million barrels (175,000 tonnes) from those markets were similar to the previous month and up 10% from year-earlier levels, government data showed.The year-on-year increase was the second in a row and followed a sharp fall in shipments during the previous year to May.Imports of premium-grade base oils rose even after US Group III base oils prices fell to a steep discount to prices in Europe and to a rare discount to prices in Asia.The pick-up in shipments also coincided with a time of year when already-weak domestic demand faced further pressure from a seasonal slowdown in activity.Imports rose because of a surge in shipments from South Korea to more than 600,000 barrels in July. The volume was the highest since end-2019.The rebound in shipments partly reflected a recovery in South Korea’s Group III base oils output following the completion of plant maintenance work at the start of the second quarter of the year.It also pointed to moves to maintain market share after US Group III base oils imports from the Middle East surged this year.The shipments helped to cover for the fall in imports from South Korea and boosted sharply their share of the US’ total Group III base oils imports.The prospect of suppliers in South Korea and the Middle East seeking to maintain or increase market share would coincide with a rise in the US’ domestic Group III base oils output.Higher domestic output in turn raised the prospect of growing competition among overseas suppliers to maintain or increase their share of a shrinking market.Weak US lube demand cut further the size of the market.US imports of Group III base oils accounted for more than 97% of the country’s total imports of 1.28 million barrels in July.The volume was down 6% from year-earlier levels, when imports got a boost from unusually high shipments from the Netherlands and Saudi Arabia.Imports from those two countries almost ground to a halt in July this year..US July base oils exports fall.S Korea’s July exports to Americas rise
US base oils imports from markets with Group III production held firm in July for a second month even with less competitive domestic prices and weak domestic demand.Total imports of 1.24 million barrels (175,000 tonnes) from those markets were similar to the previous month and up 10% from year-earlier levels, government data showed.The year-on-year increase was the second in a row and followed a sharp fall in shipments during the previous year to May.Imports of premium-grade base oils rose even after US Group III base oils prices fell to a steep discount to prices in Europe and to a rare discount to prices in Asia.The pick-up in shipments also coincided with a time of year when already-weak domestic demand faced further pressure from a seasonal slowdown in activity.Imports rose because of a surge in shipments from South Korea to more than 600,000 barrels in July. The volume was the highest since end-2019.The rebound in shipments partly reflected a recovery in South Korea’s Group III base oils output following the completion of plant maintenance work at the start of the second quarter of the year.It also pointed to moves to maintain market share after US Group III base oils imports from the Middle East surged this year.The shipments helped to cover for the fall in imports from South Korea and boosted sharply their share of the US’ total Group III base oils imports.The prospect of suppliers in South Korea and the Middle East seeking to maintain or increase market share would coincide with a rise in the US’ domestic Group III base oils output.Higher domestic output in turn raised the prospect of growing competition among overseas suppliers to maintain or increase their share of a shrinking market.Weak US lube demand cut further the size of the market.US imports of Group III base oils accounted for more than 97% of the country’s total imports of 1.28 million barrels in July.The volume was down 6% from year-earlier levels, when imports got a boost from unusually high shipments from the Netherlands and Saudi Arabia.Imports from those two countries almost ground to a halt in July this year..US July base oils exports fall.S Korea’s July exports to Americas rise
