India’s base oils imports fell to a seventeen-month low in August, contrasting with unusually firm domestic lube demand for the time of year.Total imports of close to 270,000 tonnes in August fell from around 300,000 tonnes in July and in June, provisional customs data showed.The June and July volumes already slowed from typical levels of more than 330,000 tonnes/month in the seven months to May.The August volume fell further below those levels to the lowest since the first quarter of 2023.A fall in imports in the month of August would typically coincide with a seasonal drop in India’s lube demand during the monsoon season.Lower imports would limit any subsequent build-up of surplus supplies.India’s lube demand duly fell in August from the previous month. But the size of the drop was smaller than usual.The steadier consumption in turn followed a shortfall of base oils supply to demand during the previous five months to July, eroding Indian blenders’ inventories.The drop in imports and steadier consumption in August limited blenders’ opportunity to replenish those inventories.Imports fell in August mostly because of a further drop in shipments from South Korea. The slowdown preceded the shutdown of a key base oils unit in the country in September for scheduled maintenance work.Imports of paraffinic base oils from the US also stayed unusually low in August for a second month.The drop in shipments reflected a closed arbitrage from the US.Prices got support and supply was tighter in that market because of a round of stock-building during the Atlantic hurricane season.India’s base oils imports from Spain and Qatar also fell sharply in August. Those markets are typically key sources of very-light grade base oils for the Indian market.Imports from Spain are likely to get a boost in September, with several cargoes scheduled to reach India during the month..S Korea’s July exports to India/Mideast Gulf stay lower.India’s Aug lube demand holds firm
India’s base oils imports fell to a seventeen-month low in August, contrasting with unusually firm domestic lube demand for the time of year.Total imports of close to 270,000 tonnes in August fell from around 300,000 tonnes in July and in June, provisional customs data showed.The June and July volumes already slowed from typical levels of more than 330,000 tonnes/month in the seven months to May.The August volume fell further below those levels to the lowest since the first quarter of 2023.A fall in imports in the month of August would typically coincide with a seasonal drop in India’s lube demand during the monsoon season.Lower imports would limit any subsequent build-up of surplus supplies.India’s lube demand duly fell in August from the previous month. But the size of the drop was smaller than usual.The steadier consumption in turn followed a shortfall of base oils supply to demand during the previous five months to July, eroding Indian blenders’ inventories.The drop in imports and steadier consumption in August limited blenders’ opportunity to replenish those inventories.Imports fell in August mostly because of a further drop in shipments from South Korea. The slowdown preceded the shutdown of a key base oils unit in the country in September for scheduled maintenance work.Imports of paraffinic base oils from the US also stayed unusually low in August for a second month.The drop in shipments reflected a closed arbitrage from the US.Prices got support and supply was tighter in that market because of a round of stock-building during the Atlantic hurricane season.India’s base oils imports from Spain and Qatar also fell sharply in August. Those markets are typically key sources of very-light grade base oils for the Indian market.Imports from Spain are likely to get a boost in September, with several cargoes scheduled to reach India during the month..S Korea’s July exports to India/Mideast Gulf stay lower.India’s Aug lube demand holds firm
