Imports hold at second-highest level in seventeen months
Group II heavy-grade imports rise to highest in more than four years
Group II light-grade imports revert to more typical levels
India’s Group II base oils imports remained elevated in October, with inflows of heavy grades rising to the highest level in more than four years.
Total Group II base oils imports of more than 120,00 tonnes in October fell from over 130,000 tonnes in September, provisional customs data showed.
The September volume was the highest since May 2024. The October volume was the second-highest since then.
The firm Group II inflows lifted their share of India’s total imports to the highest level in eight months.
Group II imports fell in October as supplies of light-grade base oils reverted to more typical levels for the year.
The slowdown contrasted with a further rise in Group II heavy-grade imports to the highest in more than four years.
The arbitrage to move more heavy-grade shipments to India stayed open so far in the fourth quarter of the year despite the sustained pick-up in supplies.
The dynamic suggested that firm domestic demand continued to complicate blenders’ moves to replenish stocks.
It also pointed to stronger demand for Group II heavy grades instead of Group I base oils in view of their ready availability and competitive price compared with Group I supplies.