India’s base oils imports rose to a four-month high in January, boosted by the arrival of a wave of shipments from the US.Total imports of more than 330,000 tonnes in January rose from around 300,000 tonnes the previous month and by 6% from year-earlier levels, provisional customs data showed.Imports rose even as supplies from Asia fell amid a drop in shipments from South Korea.A jump in imports from the US more than made up the shortfall.Imports of more than 33,000 tonnes from the US in January were the highest since mid-2023 and up from less than 10,000 tonnes in five of the previous six months.The shipments also included paraffinic base oils for the first time in four months.The surge in shipments and resumption of flows of paraffinic base oils reflected moves to clear surplus supplies from the US market at the end of last year, when domestic demand faced a seasonal slowdown.The resumption of arbitrage shipments from the US to India was later than expected.Even so, it raised the prospect of additional surplus supplies from the country moving to India early this year, enabling blenders to boost stocks ahead of the peak lube-demand season in March.An ongoing rise in India’s outright lube consumption added to the need for buyers to replenish inventories more frequently and with ever-growing volumes.Any such additional arbitrage supplies from the US curbed pressure on buyers to line up shipments from other sources instead.India’s imported Group II base oils cargo prices weakened relative to FOB Asia prices in January, pointing to more muted interest in supplies from Asia.But there was little sign of a repeat of the surge in shipments from US that reached India in January.The arrival of the shipments in January followed a jump in US exports to India during the last two months of 2024 to their highest levels in a year.The lack of any such follow-up arbitrage shipments from the US would put the onus on domestic buyers to line up supplies from other sources instead..India’s Jan lube demand extends rise.India’s Dec base oil supply lags demand.India’s December base oils imports slip
