India’s imports of Group II heavy-grade base oils rose in November as a pick-up in shipments from Singapore and Taiwan outweighed still-low volumes from South Korea.Imports faced the prospect of getting a further boost when shipments from South Korea revert to more typical levels.Such a dynamic could put more downward pressure on imported base oils cargo prices that already weakened in December relative to FOB Asia prices.India’s imports of Group II heavy-grade base oils recovered to more than 43,000 tonnes in November, provisional customs data showed.The volume rose from around 37,000 tonnes in September and a seventeen-month low of less than 30,000 tonnes in October.The drop in imports during those two months coincided with maintenance work on a key base oils unit in South Korea. The refiner is India’s largest source of overseas base oils supplies.The maintenance work was completed at end-October.India’s imports of heavy grades from South Korea stayed close to a multi-year low in November even after the completion of the maintenance work.The lack of any sharp recovery in supplies pointed to moves to replenish stocks after the shutdown.It also raised the prospect of a stronger rise in heavy-grade shipments from South Korea to India in the coming months.Any such move would supplement signs of healthy availability of heavy-grade supplies from other sources in Asia.India’s imports of Group II heavy grades from Singapore rose to a six-month high in November.Imports of heavy grades from Taiwan were the highest in more than two years.There were also, unusually, no imports of Group II heavy-grade base oils from the Middle East in November.The last time shipments from the US included heavy grades was in mid-year.Any pick-up in flows from those other sources would provide additional supplies of the product.Such a scenario is more feasible after US Group II heavy-grade export prices flipped from a premium of more than $150/tonne to CFR India prices in September to a discount to India prices from second-half October.India’s imported heavy-grade Group II base oils price premium to FOB Asia prices by contrast stayed relatively narrow in October and November even with the tighter supply.The premium then narrowed in December.The narrower premium curbed the attraction of moving more supplies to India and pointed to more-than-enough supplies..India’s November base oils imports rise.India’s November lube demand rises.S Korea's Nov base oils exports to India hold firm.Base Oil News stories and analysis also available on ICIS platform
