Imports fall on pause in US shipments for first time in more than a year
Pause in shipments slashes total imports of Group II heavy grades
Pause in shipments provide opportunity for Asia refiners to boost market share
Pakistan’s base oils imports slid to a three-month low in September after a sudden halt in shipments from the US — the first pause in more than a year.
The interruption hit Group II heavy-grade supplies hardest.
Pakistan imported just under 18,000 tonnes in September, down sharply from more than 31,000 tonnes in August, provisional customs data showed.
Imports slowed even amid an ongoing pick-up in Pakistan's lube consumption this year.
The halt in US shipments — almost entirely Group II heavy-grade volumes — pushed Pakistan’s imports of the grade to the lowest in more than twenty months.
Group II heavy grades duly accounted for only 40% of Pakistan’s imports in September, down from close to 60% during the previous eight months.
Pakistan is a key outlet for surplus Group II heavy-grade cargoes from both Asia and the US, particularly amid the current global oversupply of these grades.
Any extended pause or slowdown in flows from the US could open the door for Asia’s refiners to move more heavy grades to Pakistan, providing a valuable destination for persistent surplus supplies.
The September slowdown also underscored the advantage to other refiners of reducing the incentive for US suppliers to move shipments to Pakistan at a time when new production capacity and soft demand are intensifying competition for market share.