India’s Group III base oils imports held firm in June, contrasting with a fall in the country’s imports of Group I and especially Group II base oils.The steady imports followed a rise in regional Group II base oils prices in April and May that narrowed their price differential to Group III base oils.The narrower price gap boosted the incentive for buyers to procure more Group III base oils instead of Group II.The price gap remained narrower than usual in July even as it widened slightly in recent weeks.The competitive prices raised the prospect of sustaining stronger-than-usual buying interest in Group III base oils in India and extending a slowdown in demand for Group II base oils.The country’s imports of Group III 4cSt base oils fell back below 20,000 tonnes in June, from more than 22,000 tonnes the previous month, provisional customs data showed.The volume was still the second-highest in five months and up more than 35% from year-earlier levels.The supplies got a boost from larger-than-usual imports from Malaysia and a jump in shipments of Russian origin, in addition to regular flows from South Korea.The price for some of the supplies of Russian and South Korean origin was unusually competitive relative to Group II light-grade base oils.India’s imports of Group III 8cSt base oils rose in June to a five-month high of more than 15,000 tonnes.Prices for these supplies were also unusually competitive relative to imported supplies of Group II heavy-grade base oils.India’s imports of very-light grade base oils fell back to around 125,000 tonnes in June from more than 150,000 tonnes the previous month.The volume still rose by 8% from year-earlier levels and boosted its share of India’s imports to more than 40% of the total. The share was the highest since the beginning of 2023.The firm import volumes mirrored similarly strong CFR India N70 prices relative to regional gasoil prices in April and May.The high N70 premium versus gasoil prices boosted the feasibility of moving more shipments to India.The premium subsequently fell sharply in June before steadying in July.The lower premium made less attractive for now the shipment of more such very-light grade base oil supplies to India..India's June base oils imports fall.India June Group II base oil imports fall
