South Korea’s base oils exports fell to a three-month low in August even after the completion of a protracted round of plant-maintenance and production issues.The drop in shipments coincided with a fall in Taiwan’s base oils exports to a seven-month low in August, as well as signs of a slowdown in Singapore’s base oils exports.The lower supply coincided with and cushioned the impact of a typical seasonal slowdown in consumption in the Asia-Pacific region, as well as in Europe and the US, in the month of August.A smaller build-up of surplus supplies curbed pressure on an adjustment in Asia’s base oils prices to facilitate the removal of any surplus volumes.Base oils prices instead held firm versus gasoil prices and versus prices in other markets like the Americas during the third quarter of the year.South Korea’s base oils exports of 331,700 tonnes in August fell from more than 350,000 tonnes the previous month and by 23% from year-earlier levels, government data showed..The volume was closer to monthly export levels during a round of plant-maintenance work in the first and second quarters of the year.Base oils output rose in July following the completion of the maintenance work, raising the prospect of a rebound in exports.The fall in export volumes in August instead pointed to unexpected production issues, to run-cuts or to stock-building following the maintenance-work..Lower shipments from Taiwan and Singapore compounded the slowdown.Total exports from the three markets combined fell to less than 520,000 tonnes in August.The volume was the lowest in seven months and down by more than 100,000 tonnes from year-earlier levels.Asia’s base oil supply-demand fundamentals had already been tighter than usual during the first seven months of the year.The tighter supply cushioned the impact of an expected seasonal slowdown in regional demand in the month of August.The steep drop in exports in August and more limited availability of spot volumes raised the prospect of extending the supply tightness through the rest of the third quarter..Taiwan’s August base oils exports slip.South Korea’s July base oils output rises
