India’s Aug Group II imports hold firm

India’s Group II base oils imports held firm in August even as the country’s total imports dipped to a two-year low.

Group II base oils imports of more than 85,000t in August fell from more than 99,000t in July to a three-month low, provisional customs data showed.

Imports were up some 30pc from year-earlier levels.

The increase was the sixth in seven months and contrasted with the 31pc fall in India’s total base oils imports in August.

The sustained rise in Group II shipments boosted their imports to more than 694,000t in the first eight months of the year. The volume was up 19pc from around 581,000t during the same period last year.

Rising supplies of Group II base oils helped to meet healthy domestic lube demand amid strong economic growth.

The country’s car sales rose in August for the fourth time in five months and for a seventh straight month versus 2019 levels.

India’s manufacturing purchasing managers’ index held firm in August at its second-highest level since last November.

Firm Group II base oils supplies contrasted with a sustained slump in India’s imports of very-light grade base oils.

The drop in shipments of those supplies is less reflective of the impact of strong economic growth on the country's rising lube demand.

The rising Group II imports also contrasted with the sustained slowdown in Chinese demand for overseas supplies.

Its drop in demand reflected the country’s rising base oils production capacity and waning lube consumption as economic growth slowed.

China’s slowdown and the rise in demand in India attracted a growing volume of supplies that was previously consumed in China.

India’s Group II base oils imports from Taiwan rose in August to their highest in more than five years.

Imports from China itself have also surged in recent months.

India’s August Group II imports fell from the previous month amid a dip in shipments of light-grade base oils. These outweighed a rise in imports of heavy grades to their highest in more than 20 months.