India’s lubricating oil demand fell to a six-month low in February, adding to a slowdown in domestic blenders’ requirements for overseas base oils supplies.Lube consumption of 348,000t in February fell from 417,000t the previous month and by 8pc from year-earlier levels, government data showed.The country’s lube demand had held unusually firm at more than 400,000 t/month through the fourth quarter of last year and the beginning of this year..The firm demand had contrasted with unusually low base oils imports. Blenders instead covered more of their feedstock requirements with plentiful supplies from domestic refiners at competitive prices.Blenders’ muted demand for overseas supplies added to pressure on regional base oils prices throughout the fourth quarter of last year and early this year.Lower lube demand in February curbed further blenders’ willingness to secure more feedstock supplies at prices that they deemed to be too high.The slower demand coincided with signs of a gradual pick-up in India’s base oils imports in January and February, even as the volumes remained low.Any subsequent supply-build was likely limited as plant maintenance work in India cut domestic base oils supply.The additional supplies would also help to meet a likely rise in lube demand in the month of March.India’s lube consumption typically surges that month as blenders seek to maximise sales before financial year-end at end-March.Demand typically falls in the month of April at the start of the new financial year.A slowdown in demand would coincide with signs of slower, even if still firm, economic growth in India over the coming year.Slower demand and healthy availability of base oils supply was likely to continue to deter blenders from accepting overseas supplies at prices that they deemed to be too high..India’s January base oils imports rise
India’s lubricating oil demand fell to a six-month low in February, adding to a slowdown in domestic blenders’ requirements for overseas base oils supplies.Lube consumption of 348,000t in February fell from 417,000t the previous month and by 8pc from year-earlier levels, government data showed.The country’s lube demand had held unusually firm at more than 400,000 t/month through the fourth quarter of last year and the beginning of this year..The firm demand had contrasted with unusually low base oils imports. Blenders instead covered more of their feedstock requirements with plentiful supplies from domestic refiners at competitive prices.Blenders’ muted demand for overseas supplies added to pressure on regional base oils prices throughout the fourth quarter of last year and early this year.Lower lube demand in February curbed further blenders’ willingness to secure more feedstock supplies at prices that they deemed to be too high.The slower demand coincided with signs of a gradual pick-up in India’s base oils imports in January and February, even as the volumes remained low.Any subsequent supply-build was likely limited as plant maintenance work in India cut domestic base oils supply.The additional supplies would also help to meet a likely rise in lube demand in the month of March.India’s lube consumption typically surges that month as blenders seek to maximise sales before financial year-end at end-March.Demand typically falls in the month of April at the start of the new financial year.A slowdown in demand would coincide with signs of slower, even if still firm, economic growth in India over the coming year.Slower demand and healthy availability of base oils supply was likely to continue to deter blenders from accepting overseas supplies at prices that they deemed to be too high..India’s January base oils imports rise
