South Korea’s base oils exports to India rose in August, facilitating buyers’ moves to replenish low stocks.The rise in shipments partially reversed a region-wide slowdown in base oils exports to India in July and signs of a subsequent sharp fall in the country’s imports last month.Tighter supply in August would leave blenders with lower stocks heading into the final weeks of the third quarter of the year.Their lower stocks could face further pressure from an expected seasonal rise in India’s lube demand following the end of the monsoon rains and start of the festive season.The pick-up in South Korea’s base oils exports in August should help to replenish some of those lower stocks this month.Total exports of 99,000 tonnes to India in August rose from less than 75,000 tonnes the previous month, government data showed..The July volume was the lowest in ten months. The higher August volume was closer to more typical levels during the five months to June.India’s imported Group II base oils cargo price-premium to FOB Asia prices held firm and in a narrow range so far during the third quarter of the year.The firm price-differential continued to facilitate the flow of more shipments from Asia and the US to India..The feasible arbitrage suggested that supply-demand fundamentals remained tight even with the pick-up in shipments from South Korea in August.Higher base oils exports to India in August contrasted with a fall in shipments to the Middle East.The trade flows reversed a surge in South Korea's base oils exports to the Middle East and drop in shipments to India in July.Exports of less than 14,000 tonnes to the Middle East in August fell from close to 38,000 tonnes the previous month.The higher shipments to the Middle East in July added to a surge in global exports to the region, boosting stocks at a time when demand faced a seasonal slowdown.The fall in exports to the Middle East in August followed a subsequent dip in demand as buyers first worked down their existing stocks..S Korea’s August base oils exports fall.India’s August lube demand rises.Global base oils exports to Middle East rise in July .Base Oil News stories and analysis also available on ICIS platform
