South Korea’s base oils exports to Europe rose to a three-month high in January, adding to a pick-up in the region’s Group III supply in the first quarter of the year.Base oils exports of more than 23,000t to Europe in January rose from less than 18,000t during the previous two months combined, government data showed.Almost 20,000t of the volume was bound for the Netherlands and Belgium. The two countries are the key destinations for Group III base oils from South Korea.A rise in Group III shipments early this year would add to a recovery in Europe’s supplies of the premium-grade product at the end of last year.Higher Group III supplies would help to cover a typical seasonal rise in the region’s base oils demand from the end of the first quarter of the year.It could also leave a larger supply overhang if the seasonal pick-up in demand stays lower than usual.Europe’s Group III base oils prices steadied at low levels relative to Group I and Group II prices so far this year, ICIS data showed.They extended their fall versus feedstock prices and versus US Group III prices.The price-weakness reflected weak supply-demand fundamentals so far this year.The lower prices could also support firmer buying interest if demand gets a seasonal lift in the coming weeks.South Korea’s base oils exports to the US slowed in January, after shipments surged in December to a fifteen-month high.Exports of around 52,500t to the US in January fell from more than 83,000t the previous month.The slowdown followed a surge in US imports of premium-grade base oils from South Korea and Indonesia in December, with more large shipments from Asia arriving early this year.Plentiful supply and muted demand triggered a drop in US Group III posted prices at end-2023 and the beginning of this year..S Korea’s January exports stay higher
