S Korea’s May exports to Europe fall

South Korea’s base oils exports to Europe fell in May amid a slowdown in arbitrage supplies to the region.

Total exports of 15,510t to Europe in May fell by more than half from more than 31,000t the previous month, government data showed.

Almost all the volume consisted of supplies bound for the Netherlands and Belgium and likely consisted mostly of Group III base oils.

Shipments bound for other markets came to less than 1,500t, down from more than 9,000t in April.

A slowdown in Group III shipments to Europe coincided with the start of plant maintenance work in South Korea.

A slowdown in Group II shipments to Europe would follow a fall in the premium of Europe’s Group II prices versus Asia prices in March and April, making the arbitrage less attractive.

The premium then widened in May and June, especially for heavy grades.