South Korea’s base oils output rebounded to a sixteen-month high in May following the completion of plant maintenance work the previous month.The surge in output coincided with a rise in shipments from other key suppliers in the Asia-Pacific region such as Singapore.The rise in supply contrasted with a slowdown in demand in markets like China and India.Rising supply and falling demand raised the prospect of a build-up of surplus volumes in the region.A similar surge in South Korea’s base oils exports in May curbed the prospect of such a scenario, at least in the northeast Asian country.More balanced supplies gave the country’s refiners more leverage over how to respond to the seasonal slowdown in demand at the end of the second quarter and start of the third quarter of the year.South Korea’s base oils output of 2.75 million barrels (386,600 tonnes) in May rose from 2.24 million barrels the previous month, KPA data showed.The volume was the highest since the beginning of 2023.Output rebounded from a ten-month low in April, when maintenance work on a key Group III base oils unit slashed production.The unit resumed operations in late-April.The rise in output added to a strong pick-up in regional base oils supply in a market that already faced downward price pressure.A similar surge in South Korea’s base oils exports in May added to that pressure.The rise in shipments also slowed any build-up of surplus volumes in the northeast Asian country.More balanced supply in turn curbed pressure on the country’s refiners to make the arbitrage more feasible to clear surplus volumes.The dynamic could change fast if South Korea’s base oils output were to stay high and outpace the country’s exports..S Korea’s May base oils exports rise.Singapore’s May base oils exports rise.Japan’s May base oils supply lags demand
South Korea’s base oils output rebounded to a sixteen-month high in May following the completion of plant maintenance work the previous month.The surge in output coincided with a rise in shipments from other key suppliers in the Asia-Pacific region such as Singapore.The rise in supply contrasted with a slowdown in demand in markets like China and India.Rising supply and falling demand raised the prospect of a build-up of surplus volumes in the region.A similar surge in South Korea’s base oils exports in May curbed the prospect of such a scenario, at least in the northeast Asian country.More balanced supplies gave the country’s refiners more leverage over how to respond to the seasonal slowdown in demand at the end of the second quarter and start of the third quarter of the year.South Korea’s base oils output of 2.75 million barrels (386,600 tonnes) in May rose from 2.24 million barrels the previous month, KPA data showed.The volume was the highest since the beginning of 2023.Output rebounded from a ten-month low in April, when maintenance work on a key Group III base oils unit slashed production.The unit resumed operations in late-April.The rise in output added to a strong pick-up in regional base oils supply in a market that already faced downward price pressure.A similar surge in South Korea’s base oils exports in May added to that pressure.The rise in shipments also slowed any build-up of surplus volumes in the northeast Asian country.More balanced supply in turn curbed pressure on the country’s refiners to make the arbitrage more feasible to clear surplus volumes.The dynamic could change fast if South Korea’s base oils output were to stay high and outpace the country’s exports..S Korea’s May base oils exports rise.Singapore’s May base oils exports rise.Japan’s May base oils supply lags demand