S Korea’s exports to Americas slip

South Korea’s base oil exports to the Americas held relatively firm in June even as the northeast Asian country’s total shipments slumped.

Exports of 72,430t to the Americas edged down by 6pc from 76,770t the previous month, government data showed.

The volume was still the second highest in the last five months and up from typical levels of around 65,000 t/month in the year to April.

Exports held relatively steady even as South Korea’s total shipment volume slumped in June by 21pc from May to its lowest since first-half 2020.

Tighter availability of spot supplies in the US and firm prices in the Americas market likely supported the steadier volumes from South Korea.

Premium-grade prices in the region remained at a steep premium to prices in the Asia-Pacific market.

The steep price premium incentivized South Korean producers to maximise term shipments to the US.

It also incentivized buyers in Latin America especially to seek to line up arbitrage spot shipments from Asia-Pacific to move to their markets.

South Korean base oil exports of 65,070t to the US in June fell from 69,870t the previous month. A large portion of the supplies likely consisted of Group III base oils.

Base oil exports of 7,350t to Latin America in June rose from 6,900t the previous month. Most of the supplies were bound for Colombia.

The shipments boosted total exports to the region to 40,990t in the first half of the year.

The volume was up more than threefold from 13,420t during the same period last year. The supplies likely included arbitrage supplies of Group II base oils.