In March, the supply of base oils surged to over 77,000t, up from over 57,000t the month before and the highest level this year. The volume was computed using data from the government and ports.
In the first three months of this year, more than 200,000t of supplies were delivered, down from more than 215,000t in the fourth quarter of last year. During the same time period a year ago, they were about 30,000t higher.
Europe's base oil supply has tightened substantially this year due to delayed plant maintenance work in Italy, some scheduled repair work in other countries, and a decline in base oil exports from Russia.
Regional base oil prices have risen as a result, especially for Group I suppliers.
As a result of tighter supply and the closure of numerous Group I plants in Europe last year, Spain has increased in importance as a key production and distribution hub for all base oil grades within and beyond the region.
The country's base oil supplies declined considerably in the first half of last year due to facilities maintenance. They have quickly recovered since the second half of last year, consistently exceeding 200,000t in each quarter.
For the fourth month in a row, Germany's lubricating oil production declined. Total lubricating oil output fell 35% in April compared to the same month a year ago, reaching its lowest level in four months, according to government estimates.
Furthermore, production decreased by 1% from the previous month.
In Germany, lube manufacturing usually rises in March compared to the previous month, anticipating a seasonal uptick in lube consumption after the winter.
Following a 13 percent increase in domestic demand, German motor oil production increased by 4% in March.
Despite a 4% increase in domestic demand for lubricants, metal-working fluid output fell by 6%.
The difference was exacerbated by a 27 percent drop in lubricant exports to 116,870 t in March. Shipments of process oil were down 45 percent, motor oil were down 11 percent, and hydraulic oil were down 36 percent.
Germany's lubricant output fell in March.
Germany's lubricant demand fell more slowly in March.
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