Italy’s base oils output stayed unusually low in March while the country’s exports extended their fall.The moves highlighted the widespread repercussions of the closure of one of the country’s Group I base oils units in the first few months of the year.Base oils output of 59,700 tonnes in March edged up from 57,000 tonnes the previous month, government data showed. It still fell by 20% and for the second time in three months from year-earlier levels.The fall in production left total output of 180,500 tonnes in the first quarter of the year down 6% or some 35,000 tonnes from year-earlier levels.Output was likely to stay lower following the closure of one of Italy’s two Group I base oils units early this year.Italy’s base oils exports already fell sharply in recent months even before the drop in its base oils production capacity.Shipments to overseas markets fell by more than 20% in March and for the fourth time in five months from year-earlier levels.Europe’s Group I base oils export prices rebounded from March, highlighting the tighter availability of supply.The rebound in export prices also far outpaced the rise in the region’s domestic prices, highlighting the larger impact of tighter supplies on overseas markets.Italy’s drop in base oils production capacity also raised the prospect of boosting its own requirements for additional supplies from other markets.The country’s imports of more than 132,000 tonnes in the first quarter of the year rose by 6% from year-earlier levels to the highest in more than three years.Most of the imports originated from suppliers in Europe.The move curbed further the availability of surplus supplies from Europe to markets outside the region..Italy’s March lube demand falls
Italy’s base oils output stayed unusually low in March while the country’s exports extended their fall.The moves highlighted the widespread repercussions of the closure of one of the country’s Group I base oils units in the first few months of the year.Base oils output of 59,700 tonnes in March edged up from 57,000 tonnes the previous month, government data showed. It still fell by 20% and for the second time in three months from year-earlier levels.The fall in production left total output of 180,500 tonnes in the first quarter of the year down 6% or some 35,000 tonnes from year-earlier levels.Output was likely to stay lower following the closure of one of Italy’s two Group I base oils units early this year.Italy’s base oils exports already fell sharply in recent months even before the drop in its base oils production capacity.Shipments to overseas markets fell by more than 20% in March and for the fourth time in five months from year-earlier levels.Europe’s Group I base oils export prices rebounded from March, highlighting the tighter availability of supply.The rebound in export prices also far outpaced the rise in the region’s domestic prices, highlighting the larger impact of tighter supplies on overseas markets.Italy’s drop in base oils production capacity also raised the prospect of boosting its own requirements for additional supplies from other markets.The country’s imports of more than 132,000 tonnes in the first quarter of the year rose by 6% from year-earlier levels to the highest in more than three years.Most of the imports originated from suppliers in Europe.The move curbed further the availability of surplus supplies from Europe to markets outside the region..Italy’s March lube demand falls