India’s Group III base oils imports held firm in October, pointing to strong demand and contrasting with a slump in Group II base oils supplies.The fall in Group II shipments likely added to buying interest in the Group III base oils, especially for supplies at increasingly competitive prices compared with Group II base oils.The dynamic highlighted the healthy availability of Group III supplies, as well as signs of buyers’ flexibility in using more of the supplies as an alternative to Group II base oils.India’s total imports of Group III 4cSt and 8cSt base oils combined held at more than 30,000 tonnes in October for a sixth straight month. They exceeded that level just four times in all of 2023.The volume rose by 13% and for the seventh time in eight months from year-earlier levels.The rise in shipments contrasted with a 20% drop in imports of Group II base oils in October, mostly because of a nearly-40% slide in imports of heavy grades.Group II imports fell mostly because of a drop in supplies from South Korea.The fall in shipments incentivized buyers to line up supplies from alternative sources instead.The competitive price of some of those alternative supplies added to their attraction.The average CFR India price of Group III 8cSt base oils imports held at less than $950/tonne in October for a second month, the customs data showed.The price compared with the CFR India Group II N500 price of $950/tonne in September and more than $970/tonne in October, ICIS data showed.The discount of 8cSt base oils to the Group II heavy grades added to the attraction of using more of the Group III supplies instead.India’s imports of 8cSt base oils held at more than 16,000 tonnes in October and rose for a sixth straight month from year-earlier levels.The competitive price for products like Group III 8cSt base oils and Group I heavy neutrals could sustain strong demand for those supplies and curb buying interest in Group II heavy grades even when availability improves..India’s October base oils imports mixed.India’s Oct Grp II base oils imports fall
