South Korea’s base oils exports rebounded to a seven-month high in May, adding to a pick-up in supplies throughout the Asia-Pacific region.The country’s total base oils exports of almost 405,000 tonnes in May rose from less than 315,000 tonnes the previous month, government data showed.Base oils exports fell to a five-month low in April because of the shutdown of a key Group III base oils unit in South Korea during most of the month for maintenance work.The rise in exports in May followed the completion of the maintenance work.The May volume was the highest since last October and second-highest in fifteen months.The rise in exports added to a pick-up in shipments from Taiwan and Singapore in May.The rise in shipments from key regional suppliers coincided with signs of weaker consumption in markets like China, India and Middle East.Asia’s base oils supply-demand fundamentals were relatively balanced in the first four months of the year.That dynamic faced the prospect of changing during the second quarter of the year in response to rising supply and lower demand.Asia’s base oils prices edged lower relative to feedstock and competing fuel prices in recent weeks.But they remained unusually firm, at levels that were unlikely to incentivize refiners to trim output.China was unlikely to absorb any large volumes of additional supplies in the region in view of its weak demand and plentiful domestic supply.South Korea’s base oils exports to the country held at less than 50,000 tonnes in May for the fourth time in five months. Exports had averaged close to 60,000 tonnes/month in 2023.Demand for South Korea’s Group II supplies could still get a boost following China’s imposition of tariffs on base oils shipments from Taiwan from mid-June.The higher cost of shipments from Taiwan boosts the competitiveness of supplies from South Korea..Taiwan’s May base oils exports rise.S Korea’s April base oils output falls.Asia’s April base oils supply falls
South Korea’s base oils exports rebounded to a seven-month high in May, adding to a pick-up in supplies throughout the Asia-Pacific region.The country’s total base oils exports of almost 405,000 tonnes in May rose from less than 315,000 tonnes the previous month, government data showed.Base oils exports fell to a five-month low in April because of the shutdown of a key Group III base oils unit in South Korea during most of the month for maintenance work.The rise in exports in May followed the completion of the maintenance work.The May volume was the highest since last October and second-highest in fifteen months.The rise in exports added to a pick-up in shipments from Taiwan and Singapore in May.The rise in shipments from key regional suppliers coincided with signs of weaker consumption in markets like China, India and Middle East.Asia’s base oils supply-demand fundamentals were relatively balanced in the first four months of the year.That dynamic faced the prospect of changing during the second quarter of the year in response to rising supply and lower demand.Asia’s base oils prices edged lower relative to feedstock and competing fuel prices in recent weeks.But they remained unusually firm, at levels that were unlikely to incentivize refiners to trim output.China was unlikely to absorb any large volumes of additional supplies in the region in view of its weak demand and plentiful domestic supply.South Korea’s base oils exports to the country held at less than 50,000 tonnes in May for the fourth time in five months. Exports had averaged close to 60,000 tonnes/month in 2023.Demand for South Korea’s Group II supplies could still get a boost following China’s imposition of tariffs on base oils shipments from Taiwan from mid-June.The higher cost of shipments from Taiwan boosts the competitiveness of supplies from South Korea..Taiwan’s May base oils exports rise.S Korea’s April base oils output falls.Asia’s April base oils supply falls
