India’s November Base Oils Imports Hold Firm

India’s base oils imports remained resilient in November as a rebound in shipments from the Middle East offset weaker inflows from Asia.

Strong import volumes helped cushion the impact of plant-maintenance in India and persistently-rising domestic demand.

These solid fundamentals limited any build-up of surplus supplies and sustained blenders’ requirements for follow-up shipments.

Key Highlights:

·         Imports exceeded 330,000 tonnes in November, up 2% year on year and rising for a sixth straight month, highlighting India’s growing structural demand for base oils.

·         Middle East shipments rebounded from a 34-month low in October, signalling limited disruption from regional plant-maintenance.

·         Higher imports from the Middle East offset a decline in supplies from Asia, with shipments from Singapore sliding to an eleven-month low.

·         Very-light-grade base oils imports from the Middle East rose to a six-month high, countering reduced volumes from South Korea and Spain.

·         Imports from the US held steady, with heavy grades accounting for most of the paraffinic Group II shipments.

·         The most recent Group II light-grade cargo from the US arrived in mid-2024, underscoring tighter availability of those supplies.

·         Group I heavy-neutrals imports from the US held firm for a fifth straight month, contrasting with minimal flows before July.

·         India’s Group II light-grade imports fell to their second-lowest level in eight months, reinforcing signs of tighter supply across Asia.

Market Implications

India’s sustained appetite for imported base oils helped absorb surplus volumes from Asia and the Middle East during H2 2025, supporting regional balances.

The expected imminent start-up of new base oils capacity in India should reduce those requirements.

But rising lube demand and any start-up delays are likely to keep India a major importer from overseas markets over the coming months.