Finland’s base oils exports rose in June to a three-month high but still left quarterly shipments at their lowest in a year.Base oils exports of 26,540t in June rose from 23,930t the previous month, EU data showed.The rise in shipments lifted exports to 68,850t in the three months to end-June..The volume was down 34pc from more than 104,000t in the first three months of the year and the lowest since exports fell to 61,200t in the second quarter of last year.Exports were lower than usual at that time last year because of scheduled plant maintenance work in June 2021. Exports were unusually low during the second quarter of this year even with no scheduled maintenance work.The drop in exports coincided with a slowdown in European imports of premium-grade base oils from the Mideast Gulf in June and in the first half of the year..Europe's Group III imports from Mideast Gulf fall.Base oils exports from South Korea to Europe also slowed during the first half of the year.Finland is home to a 260,000 t/yr Group III base oils plant. South Korea is home to the world’s largest Group III base oils producers..South Korea's July exports to Europe stay low .The drop in exports of premium-grade base oils to Europe coincided with unexpectedly tight supplies of Group I base oils in the region and lower Group II supplies from Netherlands and US..Europe's June base oils supply falls from Netherlands, US.The lower supplies coincided with a steady slowdown in European lube consumption, especially of industrial oils. Engine oils are a key market for Group III base oils.The drop in supplies also coincided with unusually high diesel prices relative to crude throughout most of this year. The high prices incentivized refiners to prioritise production of middle distillates over other products like base oils.More than 85pc of Finland’s exports in June moved to Belgium. The share of supplies bound for that market is typically less than 65pc of the total.Belgium is a key storage and distribution hub in northwest Europe before supplies move on to other regions..Europe’s June lube demand falls.Base Oil News stories and analysis also available on ICIS platform
