South Korea’s base oils exports stayed lower than usual in July even as they recovered from an eleven-month low in June.Total base oils exports of 333,600 tonnes in July rose from 272,300 tonnes the previous month, government data showed.The volume was also up 29% from year-earlier levels, when plant maintenance work impacted supply.But it was down from average levels of 370,000 tonnes/month in the first quarter of the year and from close to 350,000 tonnes/month in 2023.Exports stayed lower even after base oils output in June far outpaced the country’s export volumes that month.The disconnect pointed to signs of stock-building and raised the prospect of a sharp pick-up in shipments in July.The more muted recovery in exports instead pointed to ongoing moves to build stocks.Any such moves would precede planned maintenance work on a major Group II base oils unit in the country starting in September.The more muted rise in base oils exports also partially muffled the impact of a seasonal slowdown in demand in key markets in the Asia-Pacific region in July and August.Asia’s Group II base oils prices held unusually firm relative to regional gasoil prices so far in the third quarter of the year, pointing to signs of relatively balanced supply-demand fundamentals.The price-strength contrasted with the same time last year, when Asia Group II prices slipped to a discount to gasoil prices during the third quarter.The muted pick-up in South Korea’s total base oils exports in July lagged a much larger rise in shipments to southeast Asia.Shipments of more than 100,000 tonnes to the region were the highest in twenty-two months and accounted for a 30% share of South Korea's total exports.The share of exports was the highest ever and the highest of all the regions that South Korea’s shipments move to.The trend highlighted the growing importance of the southeast Asian market as a crucial outlet for South Korea’s base oils supplies..Taiwan’s July base oils exports rise.S Korea’s June base oils output slips.Base Oil News stories and analysis also available on ICIS platform
