South Korea’s base oils exports to Europe rose to an 11-month high in September amid a sustained pick-up in shipments of Group III and arbitrage shipments.Base oils exports of 35,370t in September rose from an already-high 33,010t in August and by 73pc from year-earlier levels, government data showed.The rise in base oils exports to Europe in three of the last four months followed a sustained slide in shipments to the region in six of the previous seven months to May.The recovery in exports lifted total shipments to Europe to 190,120t in the first nine months of the year.The volume was down 18pc from 232,520t during the same period last year. The slowdown narrowed from a 37pc shortfall in the first half of the year.Exports of more than 84,100t in the third quarter of the year were up from less than 54,000t in the three months to end June and the highest quarterly volume since first half 2021..A surge in South Korean shipments to Europe in second-quarter 2021 had helped to cover for planned plant maintenance work in Spain during that time.Other factors supported the rise in shipments this time.A wide-open arbitrage incentivized sellers to move a large volume of surplus Group II base oils from Asia-Pacific to Europe throughout the third quarter.Asia-Pacific Group II prices fell earlier than prices in Europe during the third quarter of the year. They also fell more steeply than prices in Europe.Their discount to European prices had already been unusually wide during the second quarter of the year.South Korea’s September shipments to Europe included another large cargo to France and record-large volumes bound for Germany and Turkey.South Korea’s base oils shipments to Belgium and Netherlands typically mostly consist of Group III base oils.Exports of 25,570t to those two markets combined in September were the highest in 11 months.The sharp rise in supplies in August and September coincided with Group III plant maintenance work in Mideast Gulf and Europe during that time.The shipments from South Korea were likely to reach Europe in October or early November, at a time when slowing economic growth in the region was compounding a seasonal slowdown in demand..S Korea’s Sept base oils exports rise
South Korea’s base oils exports to Europe rose to an 11-month high in September amid a sustained pick-up in shipments of Group III and arbitrage shipments.Base oils exports of 35,370t in September rose from an already-high 33,010t in August and by 73pc from year-earlier levels, government data showed.The rise in base oils exports to Europe in three of the last four months followed a sustained slide in shipments to the region in six of the previous seven months to May.The recovery in exports lifted total shipments to Europe to 190,120t in the first nine months of the year.The volume was down 18pc from 232,520t during the same period last year. The slowdown narrowed from a 37pc shortfall in the first half of the year.Exports of more than 84,100t in the third quarter of the year were up from less than 54,000t in the three months to end June and the highest quarterly volume since first half 2021..A surge in South Korean shipments to Europe in second-quarter 2021 had helped to cover for planned plant maintenance work in Spain during that time.Other factors supported the rise in shipments this time.A wide-open arbitrage incentivized sellers to move a large volume of surplus Group II base oils from Asia-Pacific to Europe throughout the third quarter.Asia-Pacific Group II prices fell earlier than prices in Europe during the third quarter of the year. They also fell more steeply than prices in Europe.Their discount to European prices had already been unusually wide during the second quarter of the year.South Korea’s September shipments to Europe included another large cargo to France and record-large volumes bound for Germany and Turkey.South Korea’s base oils shipments to Belgium and Netherlands typically mostly consist of Group III base oils.Exports of 25,570t to those two markets combined in September were the highest in 11 months.The sharp rise in supplies in August and September coincided with Group III plant maintenance work in Mideast Gulf and Europe during that time.The shipments from South Korea were likely to reach Europe in October or early November, at a time when slowing economic growth in the region was compounding a seasonal slowdown in demand..S Korea’s Sept base oils exports rise
