South Korea’s base oils exports rebounded in October even with the shutdown of a key base oils unit in the country for maintenance work.The rise in shipments raised the prospect of easing Asia’s relative base oils supply tightness earlier than expected in the fourth quarter of the year.South Korea’s total base oils exports of 392,100 tonnes in October rose from less than 239,000 tonnes the previous month, government data showed.The September volume was the lowest in eleven years. The October volume was the third highest in the past year.The size of the fall in shipments in September far exceeded the drop in South Korea’s base oils output that month, triggering a large supply-build.The build-up of surplus volumes provided cover for a likely steeper drop in South Korea’s base oils output in October during the plant maintenance work.The maintenance work ran from second-half September to end-October.The rebound in base oils exports in October suggested shipments got a boost from the supply-build.The dynamic suggested that the plant maintenance work in South Korea had the largest market impact in the month of September even as most of the work took place in October.Surplus volumes likely helped to support higher exports in October.Exports should then get support from a recovery in South Korea’s base oils output in the month of November.Asia’s base oils prices remained at firm levels relative to feedstock and competing fuel prices so far in the fourth quarter of the year, especially for heavy grades.The unusually firm price differentials throughout most of the year coincided with tighter-than-usual supply-demand fundamentals in the region.Those fundamentals now show signs of easing as supply improved and demand faced a seasonal slowdown..S Korea’s Sept base oils output falls.India’s Oct Grp II base oils imports fall.Asia exports to SE Asia fall in September
South Korea’s base oils exports rebounded in October even with the shutdown of a key base oils unit in the country for maintenance work.The rise in shipments raised the prospect of easing Asia’s relative base oils supply tightness earlier than expected in the fourth quarter of the year.South Korea’s total base oils exports of 392,100 tonnes in October rose from less than 239,000 tonnes the previous month, government data showed.The September volume was the lowest in eleven years. The October volume was the third highest in the past year.The size of the fall in shipments in September far exceeded the drop in South Korea’s base oils output that month, triggering a large supply-build.The build-up of surplus volumes provided cover for a likely steeper drop in South Korea’s base oils output in October during the plant maintenance work.The maintenance work ran from second-half September to end-October.The rebound in base oils exports in October suggested shipments got a boost from the supply-build.The dynamic suggested that the plant maintenance work in South Korea had the largest market impact in the month of September even as most of the work took place in October.Surplus volumes likely helped to support higher exports in October.Exports should then get support from a recovery in South Korea’s base oils output in the month of November.Asia’s base oils prices remained at firm levels relative to feedstock and competing fuel prices so far in the fourth quarter of the year, especially for heavy grades.The unusually firm price differentials throughout most of the year coincided with tighter-than-usual supply-demand fundamentals in the region.Those fundamentals now show signs of easing as supply improved and demand faced a seasonal slowdown..S Korea’s Sept base oils output falls.India’s Oct Grp II base oils imports fall.Asia exports to SE Asia fall in September
