India’s imports of Group III 4cSt and especially 8cSt base oils extended their rise in July, contrasting with an ongoing slowdown in the country’s total base oils imports.The move added to signs of a strong pick-up in imports of heavier-grade base oils in July and a slowdown in shipments of lighter grades.Imports of Group III 4cSt base oils held at close to 19,000 tonnes in July for a second month, provisional customs data showed.The volume rose by more than 20% and for an eleventh month from year-earlier levels.Imports of Group III 8cSt base oils rose to a six-month high of more than 18,500 tonnes in July. The volume was up 90% from year-earlier levels.Imports of Group III 8cSt base oils likely got a boost from competitive prices for the supplies.The average CFR India price of the 8cSt supplies held at close to $1,000/tonne, the customs data showed.The price was lower than published CFR India Group II N500 prices in May 2024 and only slightly higher than prices in June 2024.The narrow price-gap between Group III 8cSt prices and Group II heavy-grade prices boosted the attraction of procuring more of the 8cSt supplies.Even so, the rise in imports of 8cSt base oils coincided with a recovery in India’s imports of Group II heavy grades in July, adding to total supplies of heavier-grade base oils.Rising imports of heavier grades contrasted with a dip in India’s imports of very-light grade base oils in July to a four-month low.The drop in shipments coincided with lower-than-usual imports of Group II light-grade base oils in July, compounding a fall in total supplies of lighter grades.The contrasting dynamics raised the prospect of Indian buyers targeting more replenishment supplies of lighter-grade base oils before a seasonal pick-up in demand from the end of the third quarter of the year.More plentiful stocks of heavier grades could similarly curb requirements for those supplies.India’s imported prices for Group II light and heavy-grade base oils showed signs of reflecting those supply fundamentals.The premium of CFR India N150 base oils over FOB NE Asia prices rose in August to its widest level in four months, making the arbitrage more feasible.The price of CFR India N500 base oils fell back to parity to FOB NE Asia prices in August, complicating the arbitrage for those supplies.The price level matched the lowest in more than two years and fell from a premium of more than $60/tonne at the beginning of the second quarter of the year..India’s July base oils imports fall.India’s July Group II imports stay lower
