Imports fall from three-year high in September
Imports fall on slump in shipments from Middle East
Lower imports and firm demand keep stocks under pressure
India’s base oils imports fell in October amid a slump in shipments from the Middle East.
Total imports of around 340,000 tonnes in October fell from more than 400,000 tonnes the previous month, provisional customs data showed.
The September volume was the highest in more than three years.
The October volume reverted to more typical monthly levels over the past year.
Those more typical import levels stayed higher throughout the year to keep pace with India’s persistently-firm lube demand.
The firm demand slowed blenders’ ability to replenish low stocks even with the rise in imports.
Lower supply, firm demand and squeezed stocks raised the prospect of sustaining steady buying interest in shipments from overseas markets.
That buying interest could get a further boost as blenders seek alternative shipments to cover for an expected dip in supplies from Saudi Arabia over the coming weeks.
Supplies are likely to fall because of the scheduled shutdown of a key base oils unit in the Middle East country from mid-November to the end of the year.
India’s imports from Saudi Arabia already fell to a thirty-month low in October ahead of the start of the shutdown.
India’s import demand could then change from early next year, with the expected imminent start-up of new production capacity in the country set to cover more of the country’s requirements.
