South Korea’s base oils exports to India and the UAE rebounded in October after dipping sharply the previous month.The drop in shipments in September pushed buyers in those markets to line up alternative supplies from other sources instead.The rise in South Korea’s shipments in October curbed their need to do that.Total base oils exports of 91,500 tonnes to India in October rebounded from less than 50,000 tonnes the previous month, government data showed.Exports of more than 26,000 tonnes to the UAE in October rose from close to 12,000 tonnes the previous month.The slump in shipments in September coincided with the start of maintenance work on a key Group II base oils unit in South Korea that month.The maintenance work continued through October, raising expectations that South Korea’s exports would stay lower that month.The rebound in exports in October instead raised the prospect of boosting supply in India and in the UAE from November.A recovery in supply in turn curbed the urgency for buyers in those markets to seek shipments from other sources or to accept prices that they deemed to be too high.Expectations that availability of supply would continue to improve over the coming months added to the incentive for buyers to hold off replenishing stocks.Base oils prices in Asia and India mirrored the tighter, then easing supply fundamentals in recent months.Imported Group II heavy-grade cargo prices began to strengthen relative to FOB Asia prices from mid-September and extended their rise through October.The premium then steadied from end-October, remaining at much lower levels than in the first four months of the year.Expectations of improving supply also curbed the need for buyers in India and UAE to line up additional shipments from the US unless prices were at unusually competitive levels.The scenario put the onus on a further downward adjustment in US export prices for any shipments targeting India and the Middle East markets..S Korea’s October base oils exports rise.India’s October base oils imports mixed
