India’s base oils supply climbed to a fourteen-month high in May amid a simultaneous rise in the country’s domestic production and imports.The rise in supply far exceeded demand, triggering a surge in the country’s supply surplus to the highest in more than four years.The rebound in blenders’ inventories in April and May triggered a subsequent slowdown in demand as buyers focused on working down their elevated stocks.The rise in supplies in April and May helped to remove surplus volumes from refiners in the Asia-Pacific region and from more distant markets like the US during the first few months of the year.The subsequent slowdown in demand curbed India’s role as an outlet for any additional surplus volumes from those regions.The slowdown was less problematic for refiners in the US, where supply fundamentals were tighter in the second quarter of the year.The slowdown was more problematic for refiners in Asia, where a sustained slowdown in China’s demand increased the importance of outlets like India to clear surplus volumes.Rising base oils exports from key sources like Singapore and South Korea in May increased the importance of those outlets. India’s total base oils supply, or domestic output and imports combined, rose to more than 500,000 tonnes in May, government and customs data showed.Output of 125,000 tonnes in May rose from 100,000 tonnes in April to an eleven-month high.The rise in output coincided with increasingly firm base oils prices relative to feedstock and gasoil prices.It also preceded some scheduled plant maintenance work in India from mid-June to end-July.The rise in supply in May contrasted with a dip in India’s demand, or domestic consumption and exports combined, to a three-month low of less than 375,000 tonnes.The surplus of supply over demand duly rose to more than 140,000 tonnes. The volume rose from less than 60,000 tonnes in April to the highest since at least 2020..India’s May base oils imports rise.India’s May lube demand rises
India’s base oils supply climbed to a fourteen-month high in May amid a simultaneous rise in the country’s domestic production and imports.The rise in supply far exceeded demand, triggering a surge in the country’s supply surplus to the highest in more than four years.The rebound in blenders’ inventories in April and May triggered a subsequent slowdown in demand as buyers focused on working down their elevated stocks.The rise in supplies in April and May helped to remove surplus volumes from refiners in the Asia-Pacific region and from more distant markets like the US during the first few months of the year.The subsequent slowdown in demand curbed India’s role as an outlet for any additional surplus volumes from those regions.The slowdown was less problematic for refiners in the US, where supply fundamentals were tighter in the second quarter of the year.The slowdown was more problematic for refiners in Asia, where a sustained slowdown in China’s demand increased the importance of outlets like India to clear surplus volumes.Rising base oils exports from key sources like Singapore and South Korea in May increased the importance of those outlets. India’s total base oils supply, or domestic output and imports combined, rose to more than 500,000 tonnes in May, government and customs data showed.Output of 125,000 tonnes in May rose from 100,000 tonnes in April to an eleven-month high.The rise in output coincided with increasingly firm base oils prices relative to feedstock and gasoil prices.It also preceded some scheduled plant maintenance work in India from mid-June to end-July.The rise in supply in May contrasted with a dip in India’s demand, or domestic consumption and exports combined, to a three-month low of less than 375,000 tonnes.The surplus of supply over demand duly rose to more than 140,000 tonnes. The volume rose from less than 60,000 tonnes in April to the highest since at least 2020..India’s May base oils imports rise.India’s May lube demand rises