South Korea’s base oils exports to the US stayed low in August, extending a trend that coincided with a recent slowdown in shipments from the Middle East to the US.The lower export volumes from the US’ two largest sources of Group III base oils tightened the country’s premium-grade supplies during the summer months.The period of tighter supply is now set to ease as steady export volumes from South Korea coincide with a revival in shipments from the Middle East. South Korea’s base oils exports to the US came to 46,000 tonnes in August, government data showed..The volume held in a 44,000-49,000 tonnes range for the fifth time in six months. The range was low, with exports falling by 44% in August and for the third time in four months from year-earlier levels.The steady exports at lower levels coincided with a sharp slowdown in shipments from the UAE and Bahrain to the US during most of the second quarter of the year.The slowdown coincided with a round of plant-maintenance work in both countries during that period.South Korea’s base oils exports to the US held steady during that period..The steady flows curbed the opportunity for supplies from South Korea to boost their share of the US Group III market. That opportunity could now revert back to a growing challenge.The volume of Group III shipments reaching the US showed signs of bottoming out in the month of August.Exports from the UAE and Bahrain to the US gathered pace in second-half July, with the shipments reaching the US around mid-September.More supplies were lined up to reach the US in October.Those shipments, combined with the steady flows from South Korea, raised the prospect of boosting the US’ Group III base oils supply.The shipments were also set to increase their share of that supply.Any subsequent rise in US Group III supply, combined with a seasonal slowdown in demand and downward pressure on prices, could incentivize shipments from South Korea to target other markets instead.South Korea’s steady flows to the US contrasted with an ongoing slowdown in shipments to Latin America.Total exports of less than 2,500 tonnes to the region in August fell by more than 50% and for the fourth time in five months from year-earlier levels.The lower exports reflected Asia’s more balanced Group II base oils supply so far this year and subsequent drop in arbitrage shipments to markets like Latin America..S Korea’s August base oils exports fall.S Korea's Aug base oils exports to India rise.US’ July base oils imports slip.Base Oil News stories and analysis also available on ICIS platform
