India’s base oils supply stayed higher than usual in December for a second month, adding to the country’s surplus supply.The strong rise in surplus volumes in the fourth quarter of the year boosted blenders’ inventories.The trend curbed buyers’ urgency to secure additional volumes unless they deemed prices to be at competitive levels.It also raised the prospect of complicating the delivery of additional shipments from overseas markets because of tight storage space.India’s base oils output of 114,000t in December fell from 117,000t the previous month. The country’s base oils imports also fell in December, to around 330,000t, from more than 350,000t the previous month.Total supply fell in response to around 445,000t in December, down from close to 470,000t the previous month.It remained well above typical levels of around 410,000 t/month over the past year.Supply is likely to get a further boost following the planned start-up of new Group III base oils production capacity in the coming months.India’s base oils and lube demand, or domestic consumption and exports combined, also held firm at around 380,000t in December.But it lagged supply for a third month and by more than 60,000t.The persistent surplus contrasted with more balanced supplies during the third quarter of last year and curbed blenders’ urgency to buy.India’s weaker very-light grade margins versus regional gasoil prices reflected such a trend.The premium of CFR India N70 prices over regional gasoil prices extended its fall throughout the month of January to the lowest since the third quarter of last year, ICIS data showed..India's Dec base oils imports fall.India’s Dec lube demand rises
India’s base oils supply stayed higher than usual in December for a second month, adding to the country’s surplus supply.The strong rise in surplus volumes in the fourth quarter of the year boosted blenders’ inventories.The trend curbed buyers’ urgency to secure additional volumes unless they deemed prices to be at competitive levels.It also raised the prospect of complicating the delivery of additional shipments from overseas markets because of tight storage space.India’s base oils output of 114,000t in December fell from 117,000t the previous month. The country’s base oils imports also fell in December, to around 330,000t, from more than 350,000t the previous month.Total supply fell in response to around 445,000t in December, down from close to 470,000t the previous month.It remained well above typical levels of around 410,000 t/month over the past year.Supply is likely to get a further boost following the planned start-up of new Group III base oils production capacity in the coming months.India’s base oils and lube demand, or domestic consumption and exports combined, also held firm at around 380,000t in December.But it lagged supply for a third month and by more than 60,000t.The persistent surplus contrasted with more balanced supplies during the third quarter of last year and curbed blenders’ urgency to buy.India’s weaker very-light grade margins versus regional gasoil prices reflected such a trend.The premium of CFR India N70 prices over regional gasoil prices extended its fall throughout the month of January to the lowest since the third quarter of last year, ICIS data showed..India's Dec base oils imports fall.India’s Dec lube demand rises