South Korea’s base oils exports rose in December as shipments to China rebounded.The rise in total exports curbed the size of any build-up of surplus supplies in South Korea at the end of last year.The rise in exports to China added to the country’s supply amid a steady rise in its domestic base oils output.China’s rising supply coincided with firm domestic base oils prices relative to competing fuel prices and relative to prices in the Asia-Pacific market, ICIS data showed.The firm prices even with a rise in supplies pointed to a pick-up in China’s domestic demand.South Korea’s total base oils exports of 381,000t in December rose from close to 311,000t the previous month and by 27pc from year-earlier levels.Total exports of 4.19mn t in 2023 fell from year-earlier levels of 4.22mn t to the lowest since 2015.Base oils exports fell because of plant-maintenance work and refinery run-cuts.The sustained fall in exports in 2022 and 2023 pointed to more prolonged run-cuts in a market that faced growing structural oversupply and a sharp slowdown in demand from China.Base oils exports to China improved from the end of the third quarter and rose in December to a ten-month high of 82,800t.Any extension of the pick-up in shipments to China would tighten availability of South Korea’s supplies for other regions.The trend could in turn incentivize South Korea’s refiners to raise run-rates, leaving supply more readily available. .S Korea’s Nov base oils output rises.S Korea’s Nov base oils exports fall.Base Oil News stories and analysis also available on ICIS platform
