South Korea’s base oils exports to the US rose to a three-month high in February, adding to a pick-up in premium-grade shipments set to reach the North American country in the month of March.A pick-up in shipments arriving in March would coincide with and help to cover requirements for a seasonal rise in domestic demand in the US.A more muted pick-up in buying interest could conversely trigger a build-up of surplus supplies.South Korea’s base oils exports of more than 52,000 tonnes to the US in February rose from around 26,000 tonnes the previous month to the highest since November, government data showed..The drop in shipments in December and January coincided with and cushioned the impact of a seasonal fall in domestic demand in the US during the winter months.US Group III base oils prices held firm relative to Group II prices and feedstock prices during that period.The rise in South Korea’s base oils exports in February by contrast helped to meet a typical recovery in the US' domestic demand after winter.The rise in exports coincided with signs of a pick-up in shipments from the Middle East to the US, with a large cargo also reaching the country in the month of March.The rise in shipments raised the prospect of increased competition between different suppliers even with a recovery in domestic demand.A more muted recovery in demand could intensify that competition.The premium of domestic US Group III base oils prices over Group II light grades narrowed in second-half March for the first time in almost five months.The rise in South Korea’s base oils exports to the US in February failed to extend to Latin America.Shipments to that market held at less than 2,500 tonnes in February for the fourth time in five months, down from typical levels of more than 5,000 tonnes/month in 2024.The drop in shipments coincided with tighter-than-usual surplus availability in Asia late last year and early this year.The tighter fundamentals supported FOB Asia base oils cargo prices that kept shut the arbitrage to markets like Latin America..S Korea’s Feb base oils exports rebound.S Korea’s Feb exports to India/UAE rise.US’ January base oils imports rise
