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Lubricant Basestock Trade Continues to Grow Substitution of Group I is not enough for Group II and Group III suppliers—they have to look for business in export markets as well. While the basestocks industry has always been a global industry—trade flows have expanded at a rapid pace due to the capacity build up. Two examples—Group III flow into the United States and Group II flow into Europe have been very illuminating. This is Kilotonnes especially so because the United States has practically no Group III capacity, and Europe, until now, had very little Group II capacity.  Basestocks Imports by EU-28 Region from the United States, 2007 to 2018 Kilotonnes

900 800 700

Chevron’s Pascagoula plant commenced operation

600 500 400 300 200 100 0

2007

2008

2009

2010

2011

2012

2013

2014

a- Includes imports only for the period January to November 2018. SOURCE: Eurostat. www.klinegroup.com

2015

2016

2017 2018-a

Profile for Kline

Kline Perspectives 2019