India’s imports of Group III 4cst and 8cst base oils rose to a six-month high in February even amid firm prices and a slowdown in shipments from the Mideast Gulf.Imports of Group III 4cst base oils also outpaced shipments of 8cst base oils for the fourth time in five months.The trend highlighted India’s growing demand for premium-grade base oils to produce high-end engine oils.Group III 4cst imports held firm even as prices remained relatively steady. The dynamic widened even further the premium of Group III base oils prices over Group II light grades.The premium of more than $500/t was up from less than $200/t during the third quarter of last year.The trend extended into the month of March, with Group III prices holding relatively steady for shipments delivered this month.The March shipments included a pick-up in supplies from the Mideast Gulf.A rising Group III premium to Group II base oils typically incentivizes blenders to consume more of the lower-priced product instead. Such a move was previously more common in India.The lack of any such move this time highlighted buyers’ growing requirements for Group III base oils to meet increasingly stringent lubricant specifications.India’s imports of Group III 4cst base oils came to almost 13,000t in February, provisional customs data showed..The volume was down from a one-year high of more than 14,700t the previous month but up 80pc from year-earlier levels.The year-on-year rise in shipments contrasted with a 30pc fall in India’s total base oils imports in February.India’s imports of 8cst base oils came to almost 12,700t in February. The volume fell by 37pc from year-earlier levels and was down for an eighth straight month.India has historically been a key outlet for surplus supplies of 8cst base oils.These volumes now faced more competition from other base oils products at a time when India’s domestic supply has been plentiful and prices unusually competitive..India’s Feb base oils imports rise
