South Korea’s base oils exports to India rose in May to the highest in almost three years, with most of the shipments likely to arrive in the month of June.The flows raised the prospect of extending a steep pick-up in India’s base oils imports during the second quarter of the year.Indian blenders’ stocks were already high after a sharp rise in base oils imports in April and May.High stocks and the prospect of a seasonal slowdown in demand during the monsoon season were likely to prolong a slowdown in blenders’ buying interest.South Korea’s base oils exports to India rose to more than 126,000 tonnes in May, government data showed.The volume rose from an already-high 105,000 tonnes the previous month to the highest since mid-2021.Exports to the country could stay higher than usual over the coming months as China’s muted demand forces regional refiners to redirect more shipments to other markets like India.At the same time, an increasingly narrow gap between CFR India and FOB NE Asia Group II base oil prices could complicate moves to sustain high shipments to the country.Refiners would then face the choice of redirecting shipments to other markets or cutting prices or output to limit a build-up of surplus supplies.Refiners could start to face those choices more frequently following the planned start-up of new base oils production capacity in India during the third quarter of the year.The rise in domestic supply over the coming year is likely to curb Indian buyers’ requirements for overseas supplies. South Korea’s base oils exports to the UAE fell in May to a four-month low of less than 15,000 tonnes.The slowdown coincided with a less attractive arbitrage to move shipments to the region..S Korea’s May base oils exports rise.India’s May base oils imports rise.India’s May lube demand rises
South Korea’s base oils exports to India rose in May to the highest in almost three years, with most of the shipments likely to arrive in the month of June.The flows raised the prospect of extending a steep pick-up in India’s base oils imports during the second quarter of the year.Indian blenders’ stocks were already high after a sharp rise in base oils imports in April and May.High stocks and the prospect of a seasonal slowdown in demand during the monsoon season were likely to prolong a slowdown in blenders’ buying interest.South Korea’s base oils exports to India rose to more than 126,000 tonnes in May, government data showed.The volume rose from an already-high 105,000 tonnes the previous month to the highest since mid-2021.Exports to the country could stay higher than usual over the coming months as China’s muted demand forces regional refiners to redirect more shipments to other markets like India.At the same time, an increasingly narrow gap between CFR India and FOB NE Asia Group II base oil prices could complicate moves to sustain high shipments to the country.Refiners would then face the choice of redirecting shipments to other markets or cutting prices or output to limit a build-up of surplus supplies.Refiners could start to face those choices more frequently following the planned start-up of new base oils production capacity in India during the third quarter of the year.The rise in domestic supply over the coming year is likely to curb Indian buyers’ requirements for overseas supplies. South Korea’s base oils exports to the UAE fell in May to a four-month low of less than 15,000 tonnes.The slowdown coincided with a less attractive arbitrage to move shipments to the region..S Korea’s May base oils exports rise.India’s May base oils imports rise.India’s May lube demand rises
