South Korea’s base oils exports to the Americas rose to a seven-month high in July amid a pick-up in shipments to the US and signs of more arbitrage flows to Brazil.Base oils exports of 64,800 tonnes to the US in July rose from less than 34,000 tonnes the previous month to the highest this year, government data showed.The higher volumes followed a 29% slump in exports to the US in the first half of the year. Most of the supplies consisted of Group III base oils.Exports slowed because of a combination of lower demand as domestic Group III production in the US covered more of the country’s requirements.Lower US Group III base oil prices on an outright basis and relative to feedstock prices and to prices in other regions cut further the incentive to move supplies to the US.The move left South Korean suppliers with the challenge of boosting shipments to other markets.These also faced complications.Demand in Europe remained muted. At the same time, China’s growing domestic Group III supply curbed that country’s requirements for additional supplies. The drop in South Korea’s exports to the US also provided the opportunity for refiners in the Middle East to boost shipment volumes to and their share of premium-grade supplies in the US market.The rise in South Korea’s shipments in July partially reversed that trend.It also raised the prospect of a pick-up in the US’ premium-grade supplies from overseas markets during the third quarter of the year.Such a rise in supply could put further pressure on US Group III base oil prices.South Korea’s July exports also included a 5,600-tonne shipment to Brazil, following a 6,600-tonne cargo the previous month.Before June, the last time exports to the Latin American country exceeded 1,000 tonnes was last November.The pick-up in shipments followed a widening of the price-gap between Asia and US base oils prices, making the trans-Pacific arbitrage more feasible.The shipments should help improve Brazil’s tight supply-demand balance and partially cushion any disruptions to supplies from the US during the Atlantic hurricane season. .S Korea July base oils exports stay lower.S Korea’s July exports to India/Mideast Gulf stay lower.US’ June base oils imports rise
South Korea’s base oils exports to the Americas rose to a seven-month high in July amid a pick-up in shipments to the US and signs of more arbitrage flows to Brazil.Base oils exports of 64,800 tonnes to the US in July rose from less than 34,000 tonnes the previous month to the highest this year, government data showed.The higher volumes followed a 29% slump in exports to the US in the first half of the year. Most of the supplies consisted of Group III base oils.Exports slowed because of a combination of lower demand as domestic Group III production in the US covered more of the country’s requirements.Lower US Group III base oil prices on an outright basis and relative to feedstock prices and to prices in other regions cut further the incentive to move supplies to the US.The move left South Korean suppliers with the challenge of boosting shipments to other markets.These also faced complications.Demand in Europe remained muted. At the same time, China’s growing domestic Group III supply curbed that country’s requirements for additional supplies. The drop in South Korea’s exports to the US also provided the opportunity for refiners in the Middle East to boost shipment volumes to and their share of premium-grade supplies in the US market.The rise in South Korea’s shipments in July partially reversed that trend.It also raised the prospect of a pick-up in the US’ premium-grade supplies from overseas markets during the third quarter of the year.Such a rise in supply could put further pressure on US Group III base oil prices.South Korea’s July exports also included a 5,600-tonne shipment to Brazil, following a 6,600-tonne cargo the previous month.Before June, the last time exports to the Latin American country exceeded 1,000 tonnes was last November.The pick-up in shipments followed a widening of the price-gap between Asia and US base oils prices, making the trans-Pacific arbitrage more feasible.The shipments should help improve Brazil’s tight supply-demand balance and partially cushion any disruptions to supplies from the US during the Atlantic hurricane season. .S Korea July base oils exports stay lower.S Korea’s July exports to India/Mideast Gulf stay lower.US’ June base oils imports rise
