South Korea’s base oils exports to southeast Asia fell in December to the lowest in more than three years, cutting any build-up of surplus supply in the region at a time when demand faced a seasonal slowdown.The drop in shipments also curbed the opportunity for blenders to bring forward procurement plans to limit their exposure to the prospect of tighter supply-demand fundamentals later in the first quarter of the year.South Korea’s base oils exports of less than 49,000 tonnes to southeast Asia in December fell from close to 80,000 tonnes the previous month, government data showed.The volume was the lowest since the beginning of 2022.The drop in shipments partly reflected the impact of a fall in South Korea’s total base oils exports in December.Even so, shipments to southeast Asia remained much higher in June and September 2024, when South Korea’s total exports fell to even lower levels.The dynamic left shipments to southeast Asia accounting for less than 17% of its total exports in December, down from more than 24% during those two months earlier in the year. The steeper-than-usual drop in South Korea’s shipments to southeast Asia in December coincided with shrinking lube demand in the region in the second half of last year.A seasonal slowdown in consumption compounded the drop in demand at the end of the year.The drop in South Korea’s base oils exports helped to balance out the weaker demand, cutting the size of any build-up of surplus supplies at the end of last year and early this year.Blenders’ balanced-to-tighter supplies boosted the prospect of stronger moves to replenish inventories in preparation for a seasonal rise in lube consumption later in the first quarter of the year.Such moves would coincide with a round of plant maintenance work in Asia that was likely to tighten availability of surplus supply..S Korea December base oils exports fall.Asia’s November lube demand mixed
