Base oil exports from South Korea tanked in June, falling 4% from the same month of 2023, when the quantity was also exceptionally meager.
Refiners shipped 272,327 metric tons of base oil last month, down from 284,660 tons in June last year, according to the latest data from the Korea Customs Service. Those two months accounted for half of the four times in the past five years that the total sank below 300,000 tons. The other two were July of 2023 (259,281 tons) and May of 2020 (247,102 tons).
Last month’s exports were valued at U.S.$276,063, the smallest amount since February of 2021. It was also represented a 5% drop from June of 2023.
South Korea is one of the world’s largest base oil exporters supplying markets around the world with API Group II and III base stocks. Global markets are challenging at the moment. Finished lubricant demand has been generally lackluster, and Chinese refiners have begun exporting from that market, which has a large surplus of base oil production capacity.
Base oil imports to South Korea also sank last month, coming in at 20,329 tons, which was 41% less than in June of 2023. The value of those imports was $23,577, off by 41%.