South Korea’s base oil exports slumped in June to their lowest level since a wave of lockdowns throughout the world in first-half 2020.Exports of 300,690t in June slumped by 21pc from 378,980t the previous month to the lowest since May 2020, government data showed..That was when refiners slashed run rates and exports in response to lockdowns everywhere from Asia to Europe and US in a bid to slow the spread of the Covid-19 virus.China has faced intermittent lockdowns throughout this year. The moves have slashed base oils demand in that country..China’s May base oil imports extend fall.Beyond China, a steady easing of pandemic-related restrictions has supported a recovery in economic activity and base oils demand in many key markets throughout the world.Yet South Korea’s base oil exports slumped in June even with that revival in demand throughout most of the world.Some plant maintenance work in South Korea had taken place earlier in the year. Scheduled work was completed by second-half May.The fall in base oils exports partly reflected weak Chinese demand.It also followed several months of persistent surplus availability throughout the region and unusually weak base oil margins.The low margins mostly reflected pressure from the sharp rise in feedstock costs from the start of the year. Producers had less leverage to pass on those rising costs through higher prices because of the persistent surplus availability.Low base oil margins coincided with unusually strong diesel prices.The slump in South Korea’s base oil exports in June suggested moves to trim base oils production and redirect feedstock or very-light grade base oil supplies back into the diesel pool.The fall in base oil shipments cut total exports to 1.02mn t in the second quarter of the year. The volume was down 6pc from the first quarter and the lowest since second-quarter 2020..South Korea’s May base oil exports rise
South Korea’s base oil exports slumped in June to their lowest level since a wave of lockdowns throughout the world in first-half 2020.Exports of 300,690t in June slumped by 21pc from 378,980t the previous month to the lowest since May 2020, government data showed..That was when refiners slashed run rates and exports in response to lockdowns everywhere from Asia to Europe and US in a bid to slow the spread of the Covid-19 virus.China has faced intermittent lockdowns throughout this year. The moves have slashed base oils demand in that country..China’s May base oil imports extend fall.Beyond China, a steady easing of pandemic-related restrictions has supported a recovery in economic activity and base oils demand in many key markets throughout the world.Yet South Korea’s base oil exports slumped in June even with that revival in demand throughout most of the world.Some plant maintenance work in South Korea had taken place earlier in the year. Scheduled work was completed by second-half May.The fall in base oils exports partly reflected weak Chinese demand.It also followed several months of persistent surplus availability throughout the region and unusually weak base oil margins.The low margins mostly reflected pressure from the sharp rise in feedstock costs from the start of the year. Producers had less leverage to pass on those rising costs through higher prices because of the persistent surplus availability.Low base oil margins coincided with unusually strong diesel prices.The slump in South Korea’s base oil exports in June suggested moves to trim base oils production and redirect feedstock or very-light grade base oil supplies back into the diesel pool.The fall in base oil shipments cut total exports to 1.02mn t in the second quarter of the year. The volume was down 6pc from the first quarter and the lowest since second-quarter 2020..South Korea’s May base oil exports rise
