South Korea’s base oils output fell to a six-month low in October because of scheduled plant maintenance work during the month.Production levels were still higher than during recent plant maintenance work earlier this year and in 2023.The more muted fall in output in October, combined with stock-building the previous month, left refiners with sufficient supply to cover firm domestic demand and a rebound in base oils exports.Total base oils output of 2.43 million barrels (342,000 tonnes) in October fell from 2.58 million barrels the previous month and from 2.72 million barrels in August, industry data showed.The August volume was closer to more typical levels when the country’s base oils refiners were operating normally.Even so, the October volume remained well above production levels of 2.24 million barrels in April, when another plant underwent maintenance work.It also remained well above production levels of less than 2 million barrels in the middle of last year during another round of plant maintenance work.A build-up of surplus supplies in September cushioned further the impact of the drop in output in October.South Korea’s net supply surplus, or output and imports combined less domestic demand and exports, rose to a two-year high of more than 80,000 tonnes in September.The surplus rose following a slump in South Korea’s base oils exports in September to a multi-year low.The surplus more than covered for a 53,000-tonne shortfall in October.The dynamic suggested that the biggest impact on supply of the plant maintenance work was in the month of September.The plant maintenance work ended at end-October.Relatively balanced supply-demand fundamentals suggested that South Korea’s refiners were well positioned to resume normal flows to domestic and overseas markets in November following the completion of the plant maintenance work. .S Korea’s October base oils exports rise
