South Korea’s base oils exports stayed low in April for the fourth time in five months as plant maintenance work continued throughout most of the month.Exports of 325,500 tonnes in April edged up from 324,000 tonnes the previous month, government data showed..The March and April volumes were down from typical levels of more than 347,000 tonnes/month in 2024, reflecting the impact of plant maintenance work during those two months.But the volumes were up from less than 290,000 tonnes/month in the two months to January.The lower volumes at that time reflected the impact of unplanned base oils production issues that coincided with stock-building ahead of the scheduled maintenance work.The sustained drop in exports, combined with a heavy round of plant maintenance throughout Asia, left the region’s base oils supply tighter than usual in the first few months of the year.A seasonal rise in demand at the end of the first quarter, and stock-building ahead of the pick-up in consumption, compounded the supply tightness.Asia’s base oils prices rose strongly versus Singapore gasoil prices so far this year, reflecting the firm supply-demand fundamentals.South Korea’s base oils exports could now start to revive following last month’s completion of maintenance work on a key Group II base oils unit.Any such pick-up in shipments would coincide with the completion of plant maintenance work in other markets and a subsequent recovery in supply.It would also follow slower-than-expected regional demand at the end of the first quarter of the year, with that dynamic showing signs of extending into the second quarter.Slower demand could magnify a typical seasonal dip in consumption during the summer months.Any such concerns could incentivize South Korea’s refiners to boost exports and limit any stock-build in the coming weeks..S Korea’s March base oils output falls.S Korea’s March base oils exports fall.Base Oil News stories and analyses also available on the ICIS platform
