India’s Group II base oils imports recovered to a three-month high in August as an ongoing rise in shipments of heavy grades balanced out still-muted imports of light-grade base oils.Total Group II imports of light and heavy-grade base oils recovered to around 92,000 tonnes in August, provisional customs data showed.The volume rose from less than 86,000 tonnes the previous month but still fell by 16% and for a third month from year-earlier levels.Imports fell from year-earlier levels because of an ongoing dip in shipments of light-grade base oils.The slowdown contrasted with a rise in imports of Group II heavy neutrals in August for the fourth time in five months.The surge in shipments of Group II heavy grades raised the prospect of leaving blenders with increasingly high inventories of the product.The sustained weakness of CFR India Group II heavy-grade prices relative to FOB NE Asia base oils prices in recent months pointed to such a dynamic.The surge in shipments of Group II heavy grades could also reflect a pick-up in demand for the product as blenders increasingly move away from using Group I base oils in some lubricant formulations.Such a trend would limit any build-up of inventories and instead require regular shipments of replenishment supplies of Group II heavy grades.India’s imports of Group I heavy neutrals from key suppliers fell in August for the first time in eight months from year-earlier levels, supporting such a scenario.The Group I volume was also the lowest in eighteen months, boosting requirements for alternative heavy-grade supplies.Even so, India’s imports of Group I and Group II heavy neutrals combined rose in August for the ninth time in ten months, triggering a surge in the country’s heavy-grade supplies over the past year.Even with firmer domestic lube demand and rising consumption of Group II base oils, the surge in the country's total heavy-grade imports suggested that the supplies outpaced requirements.India’s weak CFR Group II heavy-grade price pointed to such a dynamic..India’s August base oils imports fall.S Korea’s July exports to India/Mideast Gulf stay lower.Singapore’s July base oils exports rise
