India’s base oils imports fell to a six-month low in August amid a slump in shipments from Asia.A rising flow of shipments from the US cushioned the fall.Total base oils imports of little more than 300,000 tonnes in August fell from close to 390,000 tonnes the previous month, provisional customs data showed..The volume was the lowest since February and contrasted with an unusual rise in India’s lube demand in August at a time of year when it typically slows.The unusual dynamic left domestic lube consumption outpacing the country’s base oils imports by the largest volume in five months.Lower imports and firmer demand cut blenders’ stocks at a time of year when they typically rise.Higher stocks leave blenders well prepared ahead of a typical seasonal pick-up in consumption from the end of the third quarter of the year.Lower stocks instead boosted the need for additional replenishment supplies from domestic and overseas sources..India’s firm imported base oils cargo prices reflected that dynamic.Imported Group II base oils cargo prices maintained a steady or widening premium to FOB prices in Asia and US throughout the third quarter of the year.The wide premium sustained the feasibility and attraction of lining up more shipments to move to India.India’s imports would have been even lower in August but for a jump in shipments from the US to a four-month high.The sustained pick-up in flows from the US in turn provided that market with a crucial outlet to clear surplus volumes at a time of year when it faced a seasonal slowdown in domestic demand.The pick-up in shipments highlighted the benefit to the US of the slowdown in flows from Asia to India.Any subsequent pick-up in flows from Asia could by contrast complicate an extension of the rise in shipments from the US to India.A lighter round of plant-maintenance work and the start-up of new production capacity in Asia in second-half 2025 raised the prospect of such a pick-up in flows..India’s August lube demand rises.S Korea's Aug base oils exports to India rise.Base Oil News stories and analysis also available on ICIS platform
