India’s Group II base oils imports stayed lower than usual in July for a second month amid a muted recovery in shipments of light-grade supplies.Imports of heavy-grade base oils by contrast rebounded more strongly.Total Group II base oils imports of around 85,000 tonnes in July recovered from a three-year low of less than 65,000 tonnes in June, provisional customs data showed.Imports of Group II heavy-grade base oils rebounded to more than 47,000 tonnes in July.The volume was up from close to 30,000 tonnes the previous month and accounted for some 55% of total Group II light and heavy-grade imports.Heavy-grade import volumes are typically lower than shipments of light grades.The rise in Group II heavy-grade shipments coincided with an ongoing slowdown in imports of Group I heavy neutrals from key global suppliers.The dynamic pointed to a gradual rise in consumption of Group II heavy-grade base oils in place of Group I supplies.Increasingly tight availability of Group I base oils and its narrowing price differential to Group II base oils boosted the attraction of such a move.The rebound in Group II heavy-grade imports in July preceded a seasonal slowdown in India’s lube consumption in the month of August.India’s imported prices for Group II heavy grades stayed unusually low relative to FOB NE Asia prices since second-half May, making the arbitrage hard to work.The weak prices and surge in imports suggested that supply was more than sufficient to cover demand.India’s imported prices for Group II light-grade prices by contrast extended their rise in recent weeks relative to FOB NE Asia prices.The firmer prices made the arbitrage more feasible and coincided with Group II N150 imports that held below 40,000 tonnes in July for a second month.Before June, the last time light-grade imports fell below that level was in September 2023.The drop in imports and more feasible arbitrage pointed to tighter-than-expected supply, even at a time of year when demand was lower..India’s July base oils imports fall
