South Korea’s base oils output fell to a five-month low in December at the same time as the country’s exports surged.The diverging trends likely reversed a build-up of surplus supplies, especially of Group III base oils.The shipment of a swathe of those exports to the US also removed the supplies from the Asia-Pacific market.Lower output and higher exports to other regions also cushioned the impact of a seasonal slowdown in consumption in the Asia-Pacific region at year-end.An extension of some refinery run-cuts extended into early this year.The move, along with weaker base oil margins and scheduled plant maintenance work, raised the prospect of keeping pressure on output during the first few months of this year.The country’s base oils output of 2.62mn bl (369,000t) in December fell from 2.73mn bl the previous month to the lowest since July, industry data showed.The drop in supply cut total output to around 31mn bl in 2023, down from more than 33mn bl the previous year.Base oils supply fell mostly because of plant maintenance work in the second quarter of the year.More plant maintenance work is scheduled to take place in the first and third quarters of this year.Lower output in December coincided with a fall in South Korea’s base oils imports, compounding the drop in the country’s supply..S Korea's Dec base oils exports rise.S Korea Dec base oils exports to US rise
South Korea’s base oils output fell to a five-month low in December at the same time as the country’s exports surged.The diverging trends likely reversed a build-up of surplus supplies, especially of Group III base oils.The shipment of a swathe of those exports to the US also removed the supplies from the Asia-Pacific market.Lower output and higher exports to other regions also cushioned the impact of a seasonal slowdown in consumption in the Asia-Pacific region at year-end.An extension of some refinery run-cuts extended into early this year.The move, along with weaker base oil margins and scheduled plant maintenance work, raised the prospect of keeping pressure on output during the first few months of this year.The country’s base oils output of 2.62mn bl (369,000t) in December fell from 2.73mn bl the previous month to the lowest since July, industry data showed.The drop in supply cut total output to around 31mn bl in 2023, down from more than 33mn bl the previous year.Base oils supply fell mostly because of plant maintenance work in the second quarter of the year.More plant maintenance work is scheduled to take place in the first and third quarters of this year.Lower output in December coincided with a fall in South Korea’s base oils imports, compounding the drop in the country’s supply..S Korea's Dec base oils exports rise.S Korea Dec base oils exports to US rise