South Korea’s base oils exports fell to a 31-month low in December, extending a sharp slowdown in shipments throughout the final quarter of last year.The fall in exports curbed producers' surplus supply and their need to offer steep price discounts to move the shipments.It also left buyers with lower inventories heading into the first quarter of this year.The relatively tighter supply fundamentals now faced a likely pick-up in demand over the coming weeks.Weak base oils margins raised the prospect of delaying refiners’ moves to raise output to meet any such rise in demand.South Korea’s base oils exports of little more than 300,000t in December fell by 11pc from more than 337,800t the previous month, government data showed..The volume was the lowest since May 2020. That was when lockdown measures throughout the world slashed base oils and lubricants demand.Base oils and lube demand also faced a seasonal slowdown at the end of last year. Slowing economic growth added to the slowdown in all the key markets.But the slowdown paled in comparison with the slump in demand in May 2020 because of the Covid-19 pandemic.The fall in South Korea’s base oils exports for a seventh month cut its total shipments to 4.22mn t in 2022.The volume fell by 11pc from 4.74mn t the previous year to the lowest since 2016.The fall in shipments in December coincided with an even steeper slowdown in base oils exports from Taiwan and signs of still lower-than-usual exports from Singapore that month.The lower exports extended a regionwide slowdown in shipments from the start of the fourth quarter of last year.The fall in supplies coincided with and countered the impact of weaker demand during that period.Demand was now likely to rise over the coming weeks as a seasonal pick-up in regional consumption coincides with an economic recovery in China.Supply will need to respond in kind.Regional base oils prices would need to incentivize such a response..Taiwan’s Dec base oils exports fall
South Korea’s base oils exports fell to a 31-month low in December, extending a sharp slowdown in shipments throughout the final quarter of last year.The fall in exports curbed producers' surplus supply and their need to offer steep price discounts to move the shipments.It also left buyers with lower inventories heading into the first quarter of this year.The relatively tighter supply fundamentals now faced a likely pick-up in demand over the coming weeks.Weak base oils margins raised the prospect of delaying refiners’ moves to raise output to meet any such rise in demand.South Korea’s base oils exports of little more than 300,000t in December fell by 11pc from more than 337,800t the previous month, government data showed..The volume was the lowest since May 2020. That was when lockdown measures throughout the world slashed base oils and lubricants demand.Base oils and lube demand also faced a seasonal slowdown at the end of last year. Slowing economic growth added to the slowdown in all the key markets.But the slowdown paled in comparison with the slump in demand in May 2020 because of the Covid-19 pandemic.The fall in South Korea’s base oils exports for a seventh month cut its total shipments to 4.22mn t in 2022.The volume fell by 11pc from 4.74mn t the previous year to the lowest since 2016.The fall in shipments in December coincided with an even steeper slowdown in base oils exports from Taiwan and signs of still lower-than-usual exports from Singapore that month.The lower exports extended a regionwide slowdown in shipments from the start of the fourth quarter of last year.The fall in supplies coincided with and countered the impact of weaker demand during that period.Demand was now likely to rise over the coming weeks as a seasonal pick-up in regional consumption coincides with an economic recovery in China.Supply will need to respond in kind.Regional base oils prices would need to incentivize such a response..Taiwan’s Dec base oils exports fall
