South Korea’s base oils exports to the Middle East fell to a two-year low in June, while shipments to India dipped to the lowest in eleven months.Exports to southeast Asia by contrast held firm, pointing to diverging demand trends in those various markets.Total exports of less than 5,000 tonnes to the Middle East in June fell to the lowest since the beginning of 2022, government data showed. The volume fell from more than 22,000 tonnes in each of the previous four months. Exports of less than 60,000 tonnes to India in June were the lowest since July 2023.Shipments to the country exceeded the 95,000-tonne level in each of the previous three months.The high export volumes during the previous months added to brimming stocks in both markets.High stocks then curbed demand as buyers focused on working down those inventories.A narrowing gap between FOB NE Asia Group II base oil prices and CFR India prices during the second quarter of the year reflected the more muted buying interest.The sharp drop in South Korea’s base oils exports to India and the Middle East in June speeded up the drawdown in stocks in both markets.The drop in stocks in turn raised the prospect of a revival in demand in the coming weeks, especially if buyers sought supplies for delivery before the end of the third quarter.The fall in shipments to India and the Middle East contrasted with steadier exports to southeast Asia.Exports to the region held above the 75,000 tonne/month level in June for the fifth time in six months. They rose from year-earlier levels for a third month.The steady shipments pointed to more balanced inventories in southeast Asia even as South Korea's export volumes remained relatively high.The trend pointed to demand that was firm enough to absorb those supplies..S Korea’s June base oils exports fall
