South Korea’s base oils exports to the US held firm in April for a third month at a time when Group III plant maintenance in the Middle East raised the prospect of curbing supplies from that region.The steady flows from South Korea and any dip in shipments from the Middle East provided an opportunity for the northeast Asian country to boost its share of the US Group III base oils market.That share rose in second-half 2024 after slumping in the first half of last year.South Korea’s base oils exports of more than 49,000 tonnes in April rose from 47,000 tonnes the previous month and more than doubled from year-earlier levels, government showed..The surge in shipments for a third month from year-earlier levels mostly reflected the impact of the shutdown of a key Group III base oils unit in South Korea for plant maintenance work in March 2024.Base oils exports to the US fell ahead of and during the shutdown.The drop in shipments left supplies from South Korea accounting for less than 25% of the US’ Group III base oils imports in first-half 2024, down from a 30% share in 2023.Additional maintenance work on a Group III unit began in South Korea this month.Unlike last year, the country’s base oils exports to the US held firm ahead of this month’s plant shutdown.A large cargo loaded from South Korea in first-half May before heading to the US Gulf coast.The shipment raised the prospect of limiting the size of any dip in exports this month.The plant maintenance in South Korea coincided with maintenance work on several Group III units in the Middle East during the second quarter of the year.Those units are also regular sources of large volumes of Group III base oils for the US market.Any slowdown in shipments from those units could add to the attraction of the supplies from South Korea.The country’s share of US Group III base oils imports already rebounded to close to 40% of the total in second-half 2024.The shutdowns in the Middle East could enable South Korea to consolidate that larger market share..S Korea’s April base oil exports stay low.S Korea April exports to India stay high.US’ March base oils imports rise
