South Korea’s base oils exports climbed to an eighteen-month high in August, rebounding from a slump in shipments during the previous two months even as output rose.Total base oils exports of 428,700 tonnes in August rose from 332,500 tonnes the previous month and from less than 273,000 tonnes in June, government data showed.The lower exports in June and July contrasted with a rise in the country's base oils output during that two-month period. Output in July was the highest in more than two years.The subsequent rise in surplus supplies preceded and could have helped to cover for a drop in production during the planned shutdown of a major base oils unit in South Korea in September.The surge in exports in August instead cleared a swathe of those surplus volumes.The lower surplus cut South Korean refiners’ exposure to the risk of base oils price volatility at a time when crude oil prices were trending lower.The lower surplus also raised the prospect of increasing the market impact of a drop in base oils output during the plant maintenance work over the coming weeks.The rebound in South Korea’s base oils exports in August contrasted with a drop in shipments to southeast Asia.Exports of 67,100 tonnes to the region in August fell from more than 100,000 tonnes the previous month to the lowest this year.The July volume added to a surge in shipments to southeast Asia from other Asia-Pacific refiners that month.The shipments likely replenished blenders’ depleted stocks. They then curbed any immediate requirements for additional volumes, especially at a time when demand faced a seasonal slowdown.The slowdown in demand from southeast Asia duly put pressure on South Korean refiners to move more shipments to other markets instead..S Korea’s July base oils output rises
South Korea’s base oils exports climbed to an eighteen-month high in August, rebounding from a slump in shipments during the previous two months even as output rose.Total base oils exports of 428,700 tonnes in August rose from 332,500 tonnes the previous month and from less than 273,000 tonnes in June, government data showed.The lower exports in June and July contrasted with a rise in the country's base oils output during that two-month period. Output in July was the highest in more than two years.The subsequent rise in surplus supplies preceded and could have helped to cover for a drop in production during the planned shutdown of a major base oils unit in South Korea in September.The surge in exports in August instead cleared a swathe of those surplus volumes.The lower surplus cut South Korean refiners’ exposure to the risk of base oils price volatility at a time when crude oil prices were trending lower.The lower surplus also raised the prospect of increasing the market impact of a drop in base oils output during the plant maintenance work over the coming weeks.The rebound in South Korea’s base oils exports in August contrasted with a drop in shipments to southeast Asia.Exports of 67,100 tonnes to the region in August fell from more than 100,000 tonnes the previous month to the lowest this year.The July volume added to a surge in shipments to southeast Asia from other Asia-Pacific refiners that month.The shipments likely replenished blenders’ depleted stocks. They then curbed any immediate requirements for additional volumes, especially at a time when demand faced a seasonal slowdown.The slowdown in demand from southeast Asia duly put pressure on South Korean refiners to move more shipments to other markets instead..S Korea’s July base oils output rises
