South Korea’s base oils exports to India rose to a ten-month high in June.The shipments provided a valuable outlet for a pick-up in supplies as plant-maintenance work in the northeast Asian country drew to a close.The shipments similarly provided a valuable source of supplies for India amid signs of persistently firm supply-demand fundamentals in the country so far this year.South Korea’s total base oils exports to India climbed to 112,000 tonnes in June, government data showed..The volume rose from more than 94,000 tonnes in each of the previous four months to the highest since August 2024.The higher volumes earlier in the year coincided with and helped to cover a seasonal rise in demand in India.The even-higher shipments in June preceded a typical slowdown in demand during the monsoon season.The high volumes pointed to tight inventories and a continued rise in year-on-year consumption even with a seasonal slowdown.The dynamic boosted requirements for more supplies from overseas sources like South Korea.A prolonged round of plant-maintenance in India compounded the need for additional supplies.South Korea’s typical export volumes of more than 97,000 tonnes/month to India in the first half of the year were up from 92,000 tonnes/month during the same period last year.The volume rose even as South Korea’s total exports fell by 6% in first-half 2024 from a year earlier because of a heavy round of plant-maintenance.The rise in exports helped to plug a growing gap between India’s domestic base oils production and consumption.The supply-demand divergence raised the prospect of sustaining strong demand for supplies from overseas sources like South Korea until production rises to shrink the shortfall.Such a rise in production is expected in the coming months, with new units set to start operations in India and Singapore.The additional supply could force supplies from South Korea to target other markets instead.Any delay to the start-up of those units could conversely leave India’s fundamentals staying tighter for longer.India’s prices for imported Group II base oils cargoes continued to reflect that relative tightness, with the arbitrage remaining feasible from both Asia and the US..S Korea’s June base oils exports rise.India’s June base oils imports fall
