India’s imports of Group I heavy-neutrals base oils rebounded to a four-month high in July amid a pick-up in shipments from regular as well as infrequent sources.The rise in shipments from a growing number of sources followed a jump in India’s imported Group I SN 500 cargo price relative to prices everywhere from Asia to Europe and the US.The rise in shipments pointed to sufficient availability of supplies even with any disruptions to more regular flows from the Middle East.The rise in prices pointed to the higher cost of those supplies in order to secure sufficient volumes.The rise in volumes suggested buyers were willing to pay those higher prices to secure the supplies.India’s imports of Group I heavy neutrals rebounded to close to 20,000 tonnes in July, provisional customs data showed.The volume rose from less than 10,000 tonnes in each of the previous two months and from typical levels of around 14,000 tonnes/month during the year to April..Supplies rose on the back of a pick-up in shipments from more regular sources like the Middle East and Singapore.Imports got a further boost from flows from less frequent sources like Turkey, Turkmenistan and even the US.India's increasingly higher imported cargo prices relative to other markets boosted the attraction of moving more such shipments to the country..The premium of CFR India Group I heavy-neutrals prices over FOB Asia prices rose in July and August to the highest since late-2023.India’s imported cargo prices rose versus FOB Europe prices to their firmest levels since February.Imported cargo prices also rose versus prices in other markets like UAE and the US.The rise in shipments boosted their share of India’s combined imports of Group I and Group II heavy neutrals to around 25% of the total in July.The share was up from less than 10% the previous month and closer to more typical levels in the year to April, before the recent slump in shipments.The rise in shipments, higher prices to secure the supplies, and increasingly competitive prices for Group II base oils, pointed to ongoing structural demand in India for supplies of Group I heavy neutrals..India’s July base oils imports rise.India’s July lube demand rises.US June base oils/lube exports fall.Base Oil News stories and analysis also available on ICIS platform
