ILMA Compoundings – December 2019 - 13
U.S. BASE OIL IMPORTS (TONS)
2018 Imports
2019 Imports
(through August)
Jan 198,890
203,872
Feb 119,419
142,614
Mar 273,329
212,452
Apr 233,232
196,768
May 168,547
165,003
Jun 238,913
176,373
Jul 193,047
232,798
Aug 173,056
234,108
Source: ICIS Supply and Demand Database
Mississippi, refineries and Group III base oils at Richmond,
the latter as part of an agreement with a Neste subsidiary.
Chevron's decision was driven by rising market demand
toward Group II+ and Group III to meet needs for higher-quality oils as engine designs evolve and advance.
Demand for these groups will continue to grow ahead
of the May 1, 2020, implementation of the new ILSAC
GF-6 standard for engine oils to improve fuel economy and
engine capabilities.
Base oil imports gained strength in late summer, after
volumes declined from March through June. Imports
were 21% higher year on year in July and 35% higher
year on year in August, according to the ICIS Supply and
Demand Database.
Supply was expected to remain sufficient as producers
with turnarounds scheduled had plenty of inventory.
Demand, meanwhile, remained lackluster as most end
users experienced difficult years - an overarching trend
of 2019.
IMO 2020 IMPACTS COMING, BUT NOT YET CERTAIN
As of October, the market was still searching for clarity on
how the new International Maritime Organization (IMO)
sulfur limits, which mandate that marine fuels contain no
more than 0.5% sulfur and will go into effect in January
2020, would affect fuels and lubricants markets.
Many market players had anticipated some pressure on
base oils markets if production costs were to rise and pinch
margins and if base oil supply were to tighten.
Refiners could opt to use feedstock to meet rising demand for
diesel as fuel specifications change, which could tighten base oils
markets. Additionally, shipping costs will rise across the globe.
All scenarios remained possible and players agreed there
would be a big impact to base oils, but many questions
remained as of press time.
Hay is senior editor manager at ICIS. She may be
reached at amanda.hay@icis.com.
13
ILMA Compoundings – December 2019
Table of Contents for the Digital Edition of ILMA Compoundings – December 2019
LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
NEW MEMBERS
INDUSTRY RUNDOWN
In the Know
International Insight
Market Report
PEERING INTO THE FUTURE
BREEDING PERFORMANCE
IT’S IN THE DETAILS
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
Member Connections
Cross Connections
PORTRAIT
ILMA Compoundings – December 2019 - Cover1
ILMA Compoundings – December 2019 - Cover2
ILMA Compoundings – December 2019 - 1
ILMA Compoundings – December 2019 - 2
ILMA Compoundings – December 2019 - LETTER FROM THE CEO
ILMA Compoundings – December 2019 - INSIDE ILMA
ILMA Compoundings – December 2019 - 5
ILMA Compoundings – December 2019 - WHAT’S COMING UP
ILMA Compoundings – December 2019 - NEW MEMBERS
ILMA Compoundings – December 2019 - INDUSTRY RUNDOWN
ILMA Compoundings – December 2019 - In the Know
ILMA Compoundings – December 2019 - International Insight
ILMA Compoundings – December 2019 - 11
ILMA Compoundings – December 2019 - Market Report
ILMA Compoundings – December 2019 - 13
ILMA Compoundings – December 2019 - PEERING INTO THE FUTURE
ILMA Compoundings – December 2019 - 15
ILMA Compoundings – December 2019 - 16
ILMA Compoundings – December 2019 - 17
ILMA Compoundings – December 2019 - BREEDING PERFORMANCE
ILMA Compoundings – December 2019 - 19
ILMA Compoundings – December 2019 - 20
ILMA Compoundings – December 2019 - 21
ILMA Compoundings – December 2019 - IT’S IN THE DETAILS
ILMA Compoundings – December 2019 - 23
ILMA Compoundings – December 2019 - 24
ILMA Compoundings – December 2019 - 25
ILMA Compoundings – December 2019 - BUSINESS HUB
ILMA Compoundings – December 2019 - 27
ILMA Compoundings – December 2019 - COUNSEL COMPOUND
ILMA Compoundings – December 2019 - 29
ILMA Compoundings – December 2019 - WASHINGTON LANDSCAPE
ILMA Compoundings – December 2019 - 31
ILMA Compoundings – December 2019 - Member Connections
ILMA Compoundings – December 2019 - 33
ILMA Compoundings – December 2019 - Cross Connections
ILMA Compoundings – December 2019 - 35
ILMA Compoundings – December 2019 - PORTRAIT
ILMA Compoundings – December 2019 - Cover3
ILMA Compoundings – December 2019 - Cover4
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