India’s base oils imports rose in September to the highest since early-2022.The rebound in shipments helped to replenish blenders’ depleted stocks ahead of a seasonal rise in domestic lube consumption over the following months.Any extension of India’s strong lube demand seen during the third quarter of the year would magnify the pick-up in consumption during the fourth quarter.Stronger demand raised the prospect of sustaining requirements for high volumes of base oils from overseas markets during that period.The country’s total imports of more than 400,000 tonnes in September recovered from little more than 300,000 tonnes the previous month, provisional customs data showed..The lower imports in August contrasted with stronger-than-usual lube demand at a time of year when consumption typically slows.Lower supply and stronger demand squeezed blenders’ stocks.The rebound in shipments in September helped to replenish those low stocks rather than trigger a large build-up of surplus volumes..Imports rebounded on the back of a surge in shipments from South Korea to a multi-year high.The rise in shipments followed a recovery in the northeast Asian country’s base oils output to a three-year high in August.Imports also got a boost from a pick-up in shipments from Saudi Arabia to an eight-month high.Supplies from that country are likely to fall in the fourth quarter because of scheduled plant-maintenance work.Imports of paraffinic base oils from the US fell back to a three-month low in September, from a multi-year high in August.Group I base oils unusually accounted for most of the September supplies.Any additional arbitrage shipments from the US to India could get more challenging over the coming months amid a structural rise in supply in southeast Asia and India.The higher supply, and the logistical proximity of that supply, leaves it well positioned to cover more of India’s requirements.The scenario could force more surplus volumes from the US to target other markets instead..India’s September lube demand rises.India’s August base oils supply lags demand.India’s August base oils imports fall.Base Oil News stories and analysis also available on ICIS platform
