South Korea’s base oils exports to the Americas and Europe slumped in January, pointing to a dip in shipments of Group III base oils and of arbitrage supplies of Group II base oils.Total exports of 26,000 tonnes to the US in January fell from an already-low 36,200 tonnes in December to a nine-month low, government data showed.Exports averaged close to 50,000 tonnes/month in 2024.Most of South Korea’s shipments to the US consist of Group III base oils.Exports of less than 100 tonnes to the Netherlands and Belgium in January were the lowest in two years and down from typical levels of close to 20,000 tonnes/month in 2024..The two countries are the key destinations and distribution points in Europe for Group III base oils shipments from South Korea.The slump in exports to two of South Korea’s key markets for its Group III base oils pointed to stock-building, or to a drop in production, or to the redirection of shipments to other outlets.Any redirection of shipments would face constraints because of the smaller size of other outlets compared with the US and Europe.Scheduled maintenance work in South Korea in the first quarter of the year was set to have the largest impact on Group II base oils production rather than Group III base oils.Weaker Group II base oils margins in Asia in January also prompted some moves to cut run-rates of the base oils grade.Group III base oils margins also fell to multi-year lows in January in Asia, US and Europe.The drop in shipments to the US and Europe raised the prospect of slowing a build-up of Group III base oils supplies in those markets during the winter months, when demand faced a seasonal slowdown.The drop in South Korea’s exports to the Americas and Europe in January also showed signs of extending to Group II base oils.Exports of less than 1,500 tonnes to markets in Latin America in January were the lowest since mid-2022 and down from typical levels of more than 5,000 tonnes/month in 2024.The drop in shipments coincided with increasingly firm Asia Group II base oils prices relative to US export prices from the end of the third quarter of last year, especially for heavy grades.A slowdown in arbitrage flows from Asia to Latin America increased the reliance on US supplies for buyers in that market..S Korea’s January base oils exports fall.S Korea Jan base oils exports to UAE fall
South Korea’s base oils exports to the Americas and Europe slumped in January, pointing to a dip in shipments of Group III base oils and of arbitrage supplies of Group II base oils.Total exports of 26,000 tonnes to the US in January fell from an already-low 36,200 tonnes in December to a nine-month low, government data showed.Exports averaged close to 50,000 tonnes/month in 2024.Most of South Korea’s shipments to the US consist of Group III base oils.Exports of less than 100 tonnes to the Netherlands and Belgium in January were the lowest in two years and down from typical levels of close to 20,000 tonnes/month in 2024..The two countries are the key destinations and distribution points in Europe for Group III base oils shipments from South Korea.The slump in exports to two of South Korea’s key markets for its Group III base oils pointed to stock-building, or to a drop in production, or to the redirection of shipments to other outlets.Any redirection of shipments would face constraints because of the smaller size of other outlets compared with the US and Europe.Scheduled maintenance work in South Korea in the first quarter of the year was set to have the largest impact on Group II base oils production rather than Group III base oils.Weaker Group II base oils margins in Asia in January also prompted some moves to cut run-rates of the base oils grade.Group III base oils margins also fell to multi-year lows in January in Asia, US and Europe.The drop in shipments to the US and Europe raised the prospect of slowing a build-up of Group III base oils supplies in those markets during the winter months, when demand faced a seasonal slowdown.The drop in South Korea’s exports to the Americas and Europe in January also showed signs of extending to Group II base oils.Exports of less than 1,500 tonnes to markets in Latin America in January were the lowest since mid-2022 and down from typical levels of more than 5,000 tonnes/month in 2024.The drop in shipments coincided with increasingly firm Asia Group II base oils prices relative to US export prices from the end of the third quarter of last year, especially for heavy grades.A slowdown in arbitrage flows from Asia to Latin America increased the reliance on US supplies for buyers in that market..S Korea’s January base oils exports fall.S Korea Jan base oils exports to UAE fall
