S Korea’s April exports to Americas rise

South Korea’s base oil exports to the Americas stayed low in April for a third month, at a time when Group III base oil prices in the US have held relatively steady compared with surging Group I and Group II prices.

Base oil exports of 56,030t to the Americas in April rose from 49,790t the previous month, government data showed.

The increase mostly reflected an unusual surge in shipments to Ecuador to a record-high of more than 10,000t.

Exports to that market are typically less than 700 t/month.

The jump in shipments followed a similarly unusual rise in exports from the US to Ecuador in March.

The April shipments from South Korea came at a time when the premium of US base oil prices to Asia-Pacific prices is wider than usual.

Excluding that shipment, South Korean base oil exports to other Latin American markets like Brazil and Argentina remained low at a time when demand in those markets has been rising.

Base oil exports to the US were also low. Shipments of 45,620t to the US in April fell from 49,260t the previous month to the lowest in 11 months.

A rise in premium-grade shipments from the Mideast Gulf to the US helped to counter the impact of a slowdown in exports from South Korea to the US earlier in the year.

The ongoing slowdown in shipments from South Korea means that trend will need to continue to avoid supply of premium grades tightening in the US market.