South Korea’s base oils exports to the US fell to a six-month low in December, easing pressure on a build-up of Group III supplies in the US market.Exports to Brazil by contrast surged to a multi-year high despite a less feasible arbitrage between Asia and Latin America.The pick-up in shipments raised the prospect of trimming the region’s requirements for supplies from the US.South Korea’s base oils exports of 36,000 tonnes to the US in December fell from more than 68,000 tonnes in each of the previous two months to the lowest since June, government data showed.The rise in shipments in October especially added to a surge in US base oils imports in November, at a time when its domestic demand faced a seasonal slowdown.Rising supply and weaker demand in the US raised the prospect of a larger build-up of surplus supplies at year-end.That pressure could ease at the start of this year following the slowdown in South Korea’s base oils exports to the US in December.Exports to the US also showed signs of staying lower so far in January.The slowdown in South Korea’s exports to the US contrasted with a surge in shipments to Brazil in December.Exports of 9,600 tonnes to Brazil were the highest in more than a decade. The cargo is likely to reach Brazil in late-January.The shipment added to a pick-up in such flows during the third quarter of the year, when the arbitrage to move Group II base oils from Asia to the Americas was more feasible.A pause in such shipments in October and November followed a fall in US base oils export prices that made less feasible the arbitrage for supplies from Asia.The large shipment moved to Brazil in December even with the arbitrage still hard to work and even with signs of more balanced-than-usual supply in South Korea at year-end.The delivery of the shipment from Asia could curb Brazil’s requirements for additional supplies from the US at a time of year when that market sought more outlets for its surplus volumes..S Korea December base oils exports fall.US’ November base oils imports rise
