India’s Group II heavy-grade base oils imports rose to a multi-year high in May, contrasting with a slump in shipments of Group I heavy neutrals.The dynamic reversed a recent trend of rising imports of Group I heavy neutrals, partly as buyers sought to take advantage of their steep price-discount to Group II heavy grades.Tighter availability of Group I heavy neutrals instead left buyers more reliant on Group II heavy grades to cover their requirements.Any extended pause or slowdown in Group I heavy-grade shipments from Iran over the coming weeks could prolong that trend.India’s Group II heavy-grade base oils imports of more than 60,000 tonnes in May were the highest in more than four years, provisional customs data showed..The volume rose from around 40,000 tonnes the previous month and from typical levels of around 44,000 tonnes/month over the past year.The pick-up in imports followed the completion of maintenance work in April on a key Group II base oils unit in South Korea.Group II heavy-grade imports from the northeast Asian country rose to a seventeen-month high in May.India's Group II heavy-grade imports rose even with cargo prices maintaining an unusually steep premium to light-grade prices and to Group I heavy-neutrals prices.The steep price-premium had incentivized buyers to procure more supplies of Group I base oils instead.That strategy was less feasible in May because of the shutdown of a key Group I base oils unit in Iran for maintenance work during most of that month.India's imports of Group I heavy neutrals duly dipped to less than 10,000 tonnes in May.The volume fell from close to 20,000 tonnes/month in the first four months of the year to the lowest since December.The slowdown left Group II heavy-grades accounting for more than 86% of India’s combined Group I and Group II heavy-grade base oils imports in May.The share was up from less than 72% during the first four months of the year.The base oils unit in Iran restarted at end-May, raising the prospect of a revival in flows from that market to India.The pause in its exports in second-half June and uncertainty about future shipments could instead sustain firmer demand for Group II heavy grades, despite their steep premium to Group I base oils prices. .India’s May base oils imports stay high.India’s May lube demand falls.S Korea’s May exports to India/Middle East rise
