South Korea’s base oils exports edged lower in July even after the completion of a protracted round of plant-maintenance work in the country.Total base oils exports of 351,000 tonnes in July fell from 355,000 tonnes the previous month, government data showed..The volume was up from less than 330,000 tonnes in each of the three months to May, when plant-maintenance impacted supply.But it remained well down from typical levels of at least 380,000 tonnes/month when there were no production issues like plant-maintenance work or run-cuts.The lack of any pick-up in shipments in July could have reflected South Korean refiners’ lower stocks and subsequent lack of pressure to boost exports.Squeezed light-grade base oils margins and firmer diesel prices relative to crude oil in July could also have incentivized refiners to prioritize middle distillates production..The lower export volumes coincided with signs of a slowdown in Singapore’s base oils exports in July.The drop in base oils shipments from Asia’s largest exporters curbed the pace of any pick-up in surplus supplies in the region at a time of year when demand usually faces a seasonal slowdown.Some ongoing plant-maintenance work in Asia also trimmed supply.Signs of steadier-than-usual demand in the region further limited any build-up of surplus volumes.The dynamic raised the prospect of continuing to curb the need for Asia's refiners to line up arbitrage shipments to more distant markets like the Americas to clear any surplus supplies.More manageable supply and a seasonal pick-up in demand at the end of the third quarter could then prolong the region’s more balanced fundamentals at least into the start of the fourth quarter.The expected rise in supply following the planned start-up of new production capacity in Asia in the coming months could disrupt that balance.But the rise in supply is unlikely to have a major impact at least for several more months..S Korea’s June base oils output falls.Taiwan’s July base oils exports rise.Asia’s June lube demand recovers.Base Oil News stories and analysis also available on ICIS platform
