India’s imports of Group II and Group III base oils stayed lower in March than in recent months amid a dip in shipments of Group II heavy grades and of Group III 4cSt base oils.The slowdown in imports of Group II heavy grades coincided with a rise in shipments of Group III 8cSt base oils and of Group I base oils.The trend pointed to steady demand for heavy-grade base oils, and instead a switch to supplies that were available at more competitive prices.The premium of FOB NE Asia Group II N500 over FOB Asia SN 500 prices widened to $40/tonne in first-half April, ICIS data showed.The N500 price recovered steadily throughout the first quarter of the year from a discount of more than $40/tonne to SN 500 in early January.The premium of FOB Asia Group III 8cSt base oils over FOB NE Asia N500 prices narrowed to $30/tonne in first-half April, from $160/tonne at the start of the year.Buyers’ leverage to take advantage of such price trends pointed to sufficient availability of supply, even with a slowdown in shipments in March from the US and Mideast Gulf.India’s Group II base oils imports of around 94,000 tonnes in March rose from close to 90,000 tonnes the previous month and by 12% from year-earlier levels, provisional customs data showed.A pick-up in imports of light grades in March more than countered a drop in shipments of heavy-grade base oils to an eight-month low.Lower Group II heavy-grade imports contrasted with a pick-up in Group III 8cSt shipments in March from a four-month low in February.Supplies of Group III 8cSt base oils also exceeded the import volume of 4cSt base oils for the first time in eleven months.The slowdown in imports of 4cSt base oils in February and March followed a surge in shipments of the product in the fourth quarter of last year and early this year.The slowdown coincided with a drop in India’s lube consumption in March from year-earlier levels for a third month..India March base oil imports edge lower
