South Korea’s base oils exports to the US stayed low in July, coinciding with a seasonal slowdown in the North American country’s Group III base oils consumption during the summer-holiday period.Exports to Latin America, by contrast, rose. South Korea's total base oils exports to the US came to 44,000 tonnes in July, government data showed.The volume edged down from 45,000 tonnes in June and from typical levels of around 52,000 tonnes/month over the past year..The low export volumes contrasted with signs of a pick-up in shipments from the Middle East to the US in July. Those shipments are set to reach the US in September.South Korea and the Middle East are the key sources of Group III base oils supplies for the US market.The dynamic raised the prospect of a marked drop in Group III shipments set to reach the US in August.US Group III base oils prices began to edge lower from end-July even ahead of a likely slowdown in imports.The price-pressure suggested that demand-weakness outweighed the prospect of lower Group III imports this month.The expected pick-up in US base oils imports in September would help to balance out the drop in supplies this month and replenish depleted stocks.The rise in supplies would also increase the need for a reciprocal pick-up in demand to maintain balanced fundamentals..South Korea’s lower base oils exports to the US contrasted with a pick-up in shipments to Latin America.Exports of more than 6,000 tonnes in July were the highest in four months and mostly reflected a large shipment to Brazil.Even with the shipment, South Korea’s exports of around 20,000 tonnes to Latin America in the first seven months of the year remained more than 50% lower than during the same period last year.The lower volume reflected Asia’s more balanced supply-demand fundamentals this year and subsequent lack of need to clear surplus volumes in more distant markets like Latin America.The rise in exports in July pointed to a pick-up in such surplus supplies following the completion of a heavy round of plant-maintenance in Asia.Asia’s relatively rangebound Group II base oils prices in the third quarter of the year suggested that any supply-surplus remained manageable, with only a muted impact on prices..S Korea’s July base oils exports stay low.S Korea’s July base oils exports to Middle East rise .Base Oil News stories and analysis also available on ICIS platform
