India’s Group II base oils imports rose in May to the highest in more than three years as a pick-up in shipments from the US and Saudi Arabia added to still-high volumes from Asia.The rise in shipments contrasted with a drop in imports of Group I base oils to a five-month low.Rising imports of Group II base oils and falling shipments of Group I base oils coincided with a steady rise in the premium of CFR India Group II prices over Group I prices throughout most of this year.The rising Group II premium to Group I base oils prices boosted the incentive for buyers to procure more Group I base oils. Instead, Group I base oils imports fell.The drop in Group I shipments in May could reflect a pause in buying after blenders locked in larger volumes during the first four months of the year.It could reflect a pick-up in procurement of supplies from domestic refiners.It could also reflect a switch in lubricant formulations that require the consumption of more premium-grade base oils.The country’s imports of Group II light, mid-viscosity and heavy-grade base oils rose to more than 125,000 tonnes in May, provisional customs data showed.Imports rose from an already-high volume of close to 115,000 tonnes in April to the highest in more than three years.Imports of Group II heavy grades came to close to 56,000 tonnes in May and to more than 250,000 tonnes in the first five months of the year.The volume was up from less than 200,000 tonnes during the same five-month period in 2023.The surge in Group II heavy-grade shipments to India was one factor behind the tighter availability of the base oils grade in the Asia-Pacific region so far this year.India’s imports of mid-viscosity-grade base oils got a boost from a jump in supplies from the US to a four-month high of more than 7,000 tonnes.The volume accounted for half the total import volume of Group II base oils from the US in May.The mid-viscosity grade also typically accounted for the largest share of Group II supplies from the US over the past year.Light-grade base oils accounted for a much smaller share of Group II supplies from the US in May and over the past year.The smaller volume of light-grade base oils shipments from the US to India was likely to limit the impact of tighter availability of the grade in the US during the second quarter of the year.A less workable arbitrage from the US to India could by contrast complicate the removal of any surplus volumes of mid-viscosity-grade base oils from the country..India’s May base oils imports rise.India’s May lube demand rises
India’s Group II base oils imports rose in May to the highest in more than three years as a pick-up in shipments from the US and Saudi Arabia added to still-high volumes from Asia.The rise in shipments contrasted with a drop in imports of Group I base oils to a five-month low.Rising imports of Group II base oils and falling shipments of Group I base oils coincided with a steady rise in the premium of CFR India Group II prices over Group I prices throughout most of this year.The rising Group II premium to Group I base oils prices boosted the incentive for buyers to procure more Group I base oils. Instead, Group I base oils imports fell.The drop in Group I shipments in May could reflect a pause in buying after blenders locked in larger volumes during the first four months of the year.It could reflect a pick-up in procurement of supplies from domestic refiners.It could also reflect a switch in lubricant formulations that require the consumption of more premium-grade base oils.The country’s imports of Group II light, mid-viscosity and heavy-grade base oils rose to more than 125,000 tonnes in May, provisional customs data showed.Imports rose from an already-high volume of close to 115,000 tonnes in April to the highest in more than three years.Imports of Group II heavy grades came to close to 56,000 tonnes in May and to more than 250,000 tonnes in the first five months of the year.The volume was up from less than 200,000 tonnes during the same five-month period in 2023.The surge in Group II heavy-grade shipments to India was one factor behind the tighter availability of the base oils grade in the Asia-Pacific region so far this year.India’s imports of mid-viscosity-grade base oils got a boost from a jump in supplies from the US to a four-month high of more than 7,000 tonnes.The volume accounted for half the total import volume of Group II base oils from the US in May.The mid-viscosity grade also typically accounted for the largest share of Group II supplies from the US over the past year.Light-grade base oils accounted for a much smaller share of Group II supplies from the US in May and over the past year.The smaller volume of light-grade base oils shipments from the US to India was likely to limit the impact of tighter availability of the grade in the US during the second quarter of the year.A less workable arbitrage from the US to India could by contrast complicate the removal of any surplus volumes of mid-viscosity-grade base oils from the country..India’s May base oils imports rise.India’s May lube demand rises
