India’s June lube demand rises

India’s lubricating oil demand rose in June to a three-month high amid an ongoing recovery in economic activity.

Lube consumption of 370,000t in June rose by 17pc from 316,000t same month a year earlier, government data showed.

The volume was a record-high for the month of June.

Total consumption of 2.34mn t in the first half of the year was up 8pc from 2.17mn t during the same period last year.

India’s lube demand has risen strongly since the start of the year as the easing of pandemic-related restrictions triggered a pick-up in economic growth.

Rising automobile sales and industrial growth reflected that pick-up in activity.

The country’s auto sales rose in June for a third month. Sales of passenger vehicles, commercial vehicles and tractors were also higher than June 2020 and June 2019 levels.

Industrial production rose in May for a 15^th month and at its fastest pace in a year.

The rebound in economic activity faces growing headwinds as interest rates rise to reverse high inflation.

India’s manufacturing purchasing managers’ index rose in June for a twelfth straight month. But the pace of the increase was the weakest since last September.

Lube demand rose in May and June at a slower pace than the country’s diesel consumption.

India’s retail diesel prices have held steady at lower levels since late May following a cut in the excise duty on motor fuels.

The lubricant market enjoyed no such benefit, with prices facing pressure from the surge in regional base oil prices in recent months.