South Korea Base Oil Export Value Drops

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Base oil exports from South Korea dipped 3% last month, compared to October of 2023, but the value of those exports fell 26%, reflecting the decline in base oil prices the past year.

The country exported 392,079 metric tons of base oil in October, according to the latest data from the South Korea Customs Service, down from 405,330 tons in the same month of last year. The tally for this October was still relatively solid, but the number for October 2023 was exceptionally high – one of just three months in the past 22 to top 400,000 tons.

The declared value of October’s exports was U.S. $348 million, down from $468 million year to year. Base oil prices have been declining the second half of this year on reduced crude oil prices, slackening base oil demand and flush availability.

South Korea is the world’s largest exporter of API Group III base oils, and also exports large amounts of Group II oils. Its base oils are shipped around the world and represent important supply to markets such as the United States, Europe, China and India.

In terms of mass, the country’s base oil exports this year are running dead even with last year at 3.5 million tons through the first 10 months of the year. The value of those shipments is down 12%, from $3.9 billion to $3.5 billion.

South Korea imported 16,003 tons of base oil in October, down from 28,991 tons the same month of last year. The value of those imports fell to $17 million, down from $33 million.