India’s Group II base oils imports rose to a sixteen-month high in September on the back of a jump in shipments of both light- and heavy-grade supplies.India's lower imported cargo prices for Group II heavy-grade base oils in recent weeks contrasted with steady prices for light grades, despite the pick-up in supplies of both light and heavy grades.The dynamic pointed to still-tight availability of light grades even with the pick-up in supplies. That dynamic could continue while Asia’s Group II heavy-grade prices maintain a still-steep premium to light-grade prices.India’s imports of Group II heavy-grade base oils came to more than 63,000 tonnes in September, provisional customs data showed..The volume rose from already-firm levels of more than 58,000 tonnes in each of the previous two months to the highest in more than four years.The rise in Group II heavy-grade imports in September contrasted with a drop in shipments of Group I heavy-neutrals to a three-month low.India’s imported Group II heavy-grade prices edged higher relative to Group I prices in September despite the tighter availability of Group I supplies..The dynamic contrasted with increasingly strong Group I prices at the start of the third quarter of the year following a slump in imports of Group I heavy neutrals during the previous three months.Firmer Group II prices this time could reflect their-still competitive price versus Group I, as well as buyers’ moves to use more of the premium-grade supplies in place of Group I base oils.India’s Group II light-grade base oils imports rose above the 60,000 tonnes/month level in September for the first time since April and for just the third time in more than four years.The high volume contrasted more volatile shipments in recent months, including imports that slid to a one-year low in August.The lower shipments in July and August contrasted with India’s unusually strong lube consumption during those two months, leaving blenders with tighter stocks of those supplies.A still-open arbitrage to move light-grade base oils from Asia to India pointed to ongoing buying interest in securing additional volumes..India’s September base oils imports rise.India’s September lube demand rises.S Korea's Sept base oils exports rise.Base Oil News stories and analysis also available on ICIS platform
