South Korea's base oil exports dropped in December, while total volumes over 2024 held steady compared to 2023, GTT data show.
- Exports dropped in December on the back of a seasonal slowdown in demand and lower refinery runs.
- India remained the top buyer in December and took 27pc of total South Korean cargoes, followed by China and southeast Asia which each absorbed 17pc of total exports.
- Volumes to China rose on the month, likely boosted by restocking efforts to secure cargoes for delivery before the lunar new year holiday on 28 January.
- But total shipments to China fell by 30pc on the year in 2024, reflecting growing domestic production capacity of premium grade base oils that curbed China's appetite for imported supplies.
- US purchases dropped by almost 50pc on the month in December, while full-year volumes were down by 10pc compared to 2023. The US typically imports Group III base oils from South Korea, but import interest fell as some US Group II refiners prioritised Group III production given higher margins. Relatively higher Group III prices in the US also attracted more Group III offers from the Mideast Gulf.
- Lower exports to the US and China were partially offset as sales to Europe climbed by 74pc on the year in 2024. Volumes to Europe fell by 40pc on the month in December, but remained above the five-year monthly average of 18,800t. Europe continues to offer the highest delivered prices for Group III base oils globally.
| South Korea's base oil exports | t | ||||
| Dec | m-o-m ± % | y-o-y ± % | Jan-Dec'24 | y-o-y ± % | |
| India | 78,837.3 | -10.4 | -0.6 | 1,047,155.1 | 20.6 |
| China | 50,003.2 | 46.2 | -39.2 | 499,785.6 | -29.8 |
| US | 36,151.8 | -47.5 | -56.5 | 593,242.2 | -10.4 |
| Singapore | 16,020.2 | -31.7 | -15.2 | 250,742.6 | 7.3 |
| Total | 290,104.6 | -24.2 | -24.0 | 4,170,952.7 | -0.5 |
| Source: GTT | |||||
| Total includes all countries, not just those listed | |||||
