South Korea’s base oils exports to Latin America rose in June as shipments to Brazil surged to a record high.Exports to the US by contrast fell.The rise in shipments to Latin America followed a steady widening of the spread between Asia and US Group II base oils prices since the end of the first quarter of the year.The wider price-gap began to make the arbitrage from Asia to the Americas more feasible, especially for larger cargoes.The ongoing rise in US Group II prices, combined with pressure on Asia-Pacific prices, raised the prospect of a further pick-up in trans-Pacific shipments over the coming months.South Korea’s base oils exports to Latin America rose to more than 7,000 tonnes in June, up from less than 3,500 tonnes in each of the previous three months.Almost all the June volume consisted of supplies bound for Brazil.The last time a shipment of more than 2,000 tonnes moved from South Korea to the Latin American country was in the third quarter of last year.The prospect of additional shipments moving to Latin America over the coming months contrasted with a sustained slowdown in South Korea’s base oils exports to the US.Exports of close to 34,000 tonnes to the US in June reverted to more typical levels so far this year, following a rare rise in shipments to more than 55,000 tonnes in May.The lower volumes cut total exports to the US to 226,000 tonnes in the first half of the year. The volume was down more than 40% from 318,000 tonnes during the same period last year.Exports slowed as the US' rising domestic Group III base oils production and falling Group III prices cut the attraction of moving premium-grade supplies to the country.Firmer Group III prices in Europe relative to the US in recent months instead boosted the incentive for refiners to move more shipments to that market.South Korea’s base oils exports of around 113,000 tonnes to the Netherlands and Belgium combined in the first half of the year duly rose by more than 45% from 77,000 tonnes during the same period last year.Current price levels and supply dynamics in the US and Europe suggested the adjustment in trade flows from South Korea was unlikely to change any time soon..S Korea’s June base oils exports fall.S Korea’s June base oil exports to UAE, India fall.US' May base oils imports fall.Brazil’s May base oils supply-demand balance stays tighter
South Korea’s base oils exports to Latin America rose in June as shipments to Brazil surged to a record high.Exports to the US by contrast fell.The rise in shipments to Latin America followed a steady widening of the spread between Asia and US Group II base oils prices since the end of the first quarter of the year.The wider price-gap began to make the arbitrage from Asia to the Americas more feasible, especially for larger cargoes.The ongoing rise in US Group II prices, combined with pressure on Asia-Pacific prices, raised the prospect of a further pick-up in trans-Pacific shipments over the coming months.South Korea’s base oils exports to Latin America rose to more than 7,000 tonnes in June, up from less than 3,500 tonnes in each of the previous three months.Almost all the June volume consisted of supplies bound for Brazil.The last time a shipment of more than 2,000 tonnes moved from South Korea to the Latin American country was in the third quarter of last year.The prospect of additional shipments moving to Latin America over the coming months contrasted with a sustained slowdown in South Korea’s base oils exports to the US.Exports of close to 34,000 tonnes to the US in June reverted to more typical levels so far this year, following a rare rise in shipments to more than 55,000 tonnes in May.The lower volumes cut total exports to the US to 226,000 tonnes in the first half of the year. The volume was down more than 40% from 318,000 tonnes during the same period last year.Exports slowed as the US' rising domestic Group III base oils production and falling Group III prices cut the attraction of moving premium-grade supplies to the country.Firmer Group III prices in Europe relative to the US in recent months instead boosted the incentive for refiners to move more shipments to that market.South Korea’s base oils exports of around 113,000 tonnes to the Netherlands and Belgium combined in the first half of the year duly rose by more than 45% from 77,000 tonnes during the same period last year.Current price levels and supply dynamics in the US and Europe suggested the adjustment in trade flows from South Korea was unlikely to change any time soon..S Korea’s June base oils exports fall.S Korea’s June base oil exports to UAE, India fall.US' May base oils imports fall.Brazil’s May base oils supply-demand balance stays tighter
