Exports rise to fourteen-month high
Rising exports coincide with firm shipment volumes from other key Asia suppliers
Firm exports at start of Q4 precede seasonal slowdown in demand
South Korea’s base oils exports rose to a fourteen-month high in October, extending a strong rebound in shipments from the northeast Asian country.
Base oils exports of 395,600 tonnes in October rose from 386,100 tonnes the previous month, government data showed.
The October volume was the highest since August 2024.
The September volume was the second-highest in eleven months.
The sustained rise in exports pointed to high base oils output levels and the lack of any scheduled plant-maintenance work since the start of the third quarter of the year.
The rise in shipments added to signs of healthy export volumes from other key suppliers in Asia and coincided with a time of year when regional demand typically faces a seasonal slowdown.
The rise in shipments suggested that regional refiners’ base oils output remained at high levels at the start of the fourth quarter of the year, even with the recent pressure on base oils margins.
That pressure on margins intensified in recent weeks amid signs of persistent surplus supply of heavy-grade base oils especially.
The squeeze on margins, a rise in surplus supply and the lack of any scheduled plant maintenance over the coming months could boost the incentive for refiners to adjust output accordingly.
