Base oils and waxes
Overview
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Latest base oils and waxes news
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Singapore’s Aug base oil imports hit one-year high
Singapore’s Aug base oil imports hit one-year high
Singapore, 8 October (Argus) — Singapore's base oil imports rose for the fourth consecutive month, boosting volumes to the highest since August 2023 and above the five-year monthly average of 66,000t, GTT data show. Imports rose on the back of stronger factory activity, which grew at the fastest rate since June 2021. Manufacturing output increased by 21pc on the year, and by 6.7pc on a seasonally adjusted month-on-month basis, according to data from the Economic Development Board. Qatari supplies almost tripled compared to a month earlier, as well as compared to the five-year monthly average of 7,800t — making up for a shortfall in South Korean cargoes. Both Qatar and South Korea produce premium-grade supplies, while Singapore's refineries produce Group I and II base oils. Russian bulk volumes were imported for the first time in almost three years, with the last shipment above 1,000t recorded in October 2021. Exports from Russia to Singapore have declined in size and frequency since late 2021. Russian exports are typically for Group I base oils as the country is predominantly a Group I producer, and it is subject to a price cap of $100/bl if they rely on western service providers for insurance, shipping or finance. Asia's structural shortage of Group I base oils likely supported interest in Russian cargoes, despite greater logistics or financing challenges in procuring the latter. By Tara Tang Singapore's base oil imports t Aug'24 m-o-m ± % y-o-y ± % Jan-Aug'24 y-o-y ± % Qatar 21,353 171.9 268.2 110,646 117.8 Russia 12,417 3,004.2 NA 12,873 NA US 9,082 -37.5 331.2 59,676 1,148.5 South Korea 4,368 -69.7 -70.4 74,010 -16.1 Thailand 4,282 5.7 123.5 26,190 1.3 Total 68,600 15.2 -13.9 400,239 -22.4 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Eurozone manufacturing slides deeper into contraction
Eurozone manufacturing slides deeper into contraction
London, 1 October (Argus) — The eurozone manufacturing sector slid further into contraction in September, when strength in Spain and Greece was unable to outweigh underperformance from other, larger, economies including France and Germany. The Hamburg Commercial Bank (HCOB) eurozone manufacturing purchasing managers' index (PMI) reading, compiled by S&P Global, was 45.0 in the month, a nine-month low. It was the first fall after three months of stability at 45.8. A PMI reading of below 50 indicates a deterioration. HCOB chief economist Cyrus de la Rubia noted a combination of falling demand and supply-chain constraints that were last seen during the Covid-19 pandemic. "Since June, the index tracking delivery issues has been dropping alongside new orders and for the first time since February, businesses are saying they are having to wait even longer for goods than they did in the previous month," he said. "The ongoing geopolitical tensions are obviously taking their toll here." Attacks on shipping in the Red Sea have lengthened delivery times to Europe from east of Suez, with many vessels taking the longer route around the Cape of Good Hope. Readings fell for production, new orders, employment and procurement, and producers depleted inventories. One bright spot for producers was the first fall in input costs since May, although selling prices also dropped. In the UK the S&P Global manufacturing PMI reading was 51.5 in September, a fifth successive month of expansion, albeit at a slower rate than the 52.5 in August. Output, new orders and suppliers' delivery times were "consistent with improved manufacturing operating conditions", while levels of employment and stocks of purchases declined. Input cost inflation was at a 20-month high, and the survey noted some caution ahead of the new government setting out its fiscal priorities on 30 October. By Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s base oil imports fall in July
India’s base oil imports fall in July
Singapore, 1 October (Argus) — India's base oil imports fell by 38pc on the year to 169,648t in July, following high volumes of cargo arrivals in the second quarter. India imported a total of 920,097t of base oils in the second quarter, a 72pc jump from the same period a year earlier. South Korea remained the top supplier in July, but imports from South Korea fell by 33pc on the year and 58pc on the month. Indian blenders carried ample inventory and were not in a hurry to replenish cargoes for July arrivals. Finished lubricant demand ebbed between June to September because of the monsoon season, when transport and industrial activities slowed down. Argus -assessed N150 cfr India prices averaged at $866.25/t in July, down by 2.4pc from a month earlier. N500 cfr India prices averaged at $982.50/t in July, stable from a month earlier because of tighter spot supply of heavy grades. By Chng Li Li India base oils imports (t) Jul'24 m-o-m ± % y-o-y ± % Jan-Jun'24 y-o-y ± % South Korea 52,939 -58.1 -33.3 693,135 39.5 Singapore 32,714 2.4 1.9 233,660 32.4 Saudi Arabia 24,228 21.5 30.7 137,320 -21 UAE 20,026 -38.4 -41.5 173,011 34.3 Taiwan 10,808 26,920 4.9 50,459 -17.5 Monthly total 169,648 -40.4 -38.1 1,647,053 19.3 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Pentas Flora launches re-refined Group II N150 base oil
Pentas Flora launches re-refined Group II N150 base oil
Singapore, 11 September (Argus) — Malaysia-based Pentas Flora launched its re-refined Group II N150 base oil grade today, in line with a shift in industry trends towards premium-grade base oils. The re-refiner started producing Group I SN 150 in 2022 but has converted production to Group II base oils with high-viscosity index from mid-August. The re-refiner also has the capability to produce Group III base oils depending on market demand. Its re-refining facility at Banting, Selangor has a capacity of up to 36,000 t/yr. Pentas Flora collects up to 50,000 t/yr of used motor oils from nine collection points, targeting to expand this to 28 collection points by 2026. Most Asian re-refined base oils (RRBO) produced are Group I grades. The transition from Group I to Group II and III RRBO has been dictated by what has been happening in the lubricant industry, which is moving towards using higher performing base oils, said Pentas Flora technical director H Ernest Henderson. "The industry wants to bring in oils that have better fuel economy, extended drain capabilities, reduce emissions and enhance fuel ability," Henderson said. "So over the years we have seen a shift from older performing standards to new performance standards. These are now demanding the use of higher VI and higher quality base oils." "And because re-refining basically takes engine motor oil and recaptures and re-establishes the original base oil within those formulation. The fact that we are now using higher performance motor oil using Group II and III… that in turn becomes feedstock which allows us to capture and produce higher quality base oil," he added. The shift driven by feedstock change is complemented by technology. Pentas Flora's re-refining processes involve distillation to separate the base oil components from the used motor oils, then purification using solvent extraction and lube polishing processes. Pentas Flora started with Group I RRBO initially because of sulphur content exceeding the Group II and III specifications. But with a lube polishing system installed in August it has been able to increase saturates and reduce sulphur content to meet Group II and III classifications. Lower carbon footprint RRBO has been gaining traction in recent years with governments around the world pushing for sustainability and a more circular economy. More companies are also placing more emphasis on environmental, social and governance objectives. So blenders are increasingly looking to include RRBO in finished lubricants. RRBO takes less energy to produce than virgin base oils, reduces carbon dioxide emissions and is therefore more environmentally friendly and sustainable, said Henderson. Pentas Flora is one of the few re-refiners in Malaysia, with China and India bigger markets for RRBO. India in April this year implemented the Extended Producer Responsibility for Used Oil regulation where producers of base oils and lubrication oils and importers of used oil have a recycling target of 5pc in 2024-25. This target will progressively increase to 50pc from 2030-31 onwards. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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