South Korea’s base oils exports to the US rose to a seven-month high in September, adding to a recent pick-up in the North American country’s Group III supplies from the Middle East.South Korea’s total exports of 52,000 tonnes to the US in September rose from 46,000 tonnes the previous month to the highest since February, government data showed..The arrival of the supplies in October followed the delivery of several large Group III shipments from the Middle East the previous month.The pick-up in shipments from Asia and the Middle East pointed to a resumption of more regular flows after Group III plant-maintenance work in both regions during the second quarter of the year.The impact on shipments extended well into the third quarter of the year even after completion of the maintenance work..US Group III base oils prices rose strongly versus Group II light-grade prices from late-May, then maintained that higher price-premium into the start of the fourth quarter of the year.The timing of the higher Group III price-premium to Group II base oils coincided with the plant-maintenance and its extended impact on cargo flows.A resumption of more typical Group III base oils flows to the US boosted the country’s stocks at a time of year when blenders typically start to trim inventories ahead of a seasonal lull in activity.South Korea’s base oils exports to Latin America also rose in September, lifting total shipments to close to 15,000 tonnes in the third quarter of the year.The quarterly volume was the highest this year and followed a sharp slowdown in South Korea’s exports to the region during the first half of the year.The slowdown in shipments during that period coincided with firm FOB Asia base oils prices relative to US export prices, complicating the arbitrage to the Americas.Shipments rose in the third quarter of the year even as the arbitrage remained hard to work.The rise in shipments coincided with a recovery in Asia’s base oils supply that is likely to extend over the coming months.Any such scenario could put pressure on an adjustment in prices to facilitate the arbitrage to move larger volumes to Latin America..S Korea's Sept base oils exports rise.S Korea September exports to India rise.Base Oil News stories and analysis also available on ICIS platform
