South Korea’s base oils output fell to a three-month low in September while exports rose.The diverging trends flipped the country’s base oils surplus to a shortfall for the first time in three months.The shortfall slowed any build-up of surplus volumes and eased pressure on refiners to make larger price-adjustments to clear such supplies.But supply lagged demand more because of a pick-up in exports than the drop in production.South Korea’s base oils output of 2.67 million barrels (376,200 tonnes) in September fell from 2.87 million barrels the previous month, industry data showed..Even with the slowdown, the September volume was the third-highest since August 2024.The highest and second-highest volumes since then were in July and August.The lower-than-usual volumes through most of the year to June 2025 coincided with a protracted round of plant-maintenance work.The lack of any such scheduled maintenance-work over the coming months raised the prospect of base oils output holding at more elevated levels.Higher output left refiners with the choice of boosting exports or of cutting run-rates to maintain balanced supplies..Asia’s Group II base oils margins stayed relatively firm in September even as they edged lower from the previous month.The firm margins curbed pressure on refiners to trim run-rates and sustained the incentive to maintain steady-to-high exports.That dynamic changed in October, with a further dip in base oils margins combined with increasingly firm diesel margins.Asia’s base oils and lube demand also faced the prospect of a seasonal slowdown during the final months of the year.Slower demand would limit buyers’ interest in absorbing another wave of large shipment volumes from suppliers like South Korea.Weaker demand and those diverging base oils and diesel price-trends boosted the incentive for South Korea’s refiners to adjust base oils output in response..S Korea's Sept base oils exports rise.S Korea's August base oils output rises
