India’s imports of Group III 4cst and 8cst base oils stayed high in December amid a sustained rise in shipments from South Korea.Imports of Group III 4cst base oils came to more than 22,000t in December, provisional customs data showed.The volume was the second highest in at least three years. The highest was in November.Total 4cst imports of close to 197,000t in 2023 rose by more than 60pc from around 122,000t the previous year.India’s rising demand for the premium-grade base oil provided a welcome outlet for overseas refiners that faced more muted demand in the key markets of US and Europe.India’s demand for overseas Group III supplies could also face pressure over the coming year once new base oils capacity in the country starts operations.The start-up of the new Group III capacity is unlikely to trigger a sudden change in India’s overseas requirements as production and specifications take time to stabilize.India’s rising lube demand and its even faster rise in consumption of Group III base oils is also set to cushion the impact of an increase in supply.Even so, a rise in India’s domestic Group III base oils supply raises the prospect of a slowdown in overseas demand in the medium term.The scenario incentivizes overseas refiners to develop alternative markets for their supplies in anticipation of such a development.India’s imports of Group III 8cst base oils rose to a fifteen-month high of more than 15,000t in December.Total imports of 115,000t of 8cst supplies in 2023 fell by more than 40pc from around 207,000t the previous year.Shipments slumped as more competitive Group II heavy-neutrals prices versus 8cst base oils incentivized buyers to procure more heavy grades instead..India's Dec base oils imports fall.India's Dec v light-grade imports rise.Base Oil News stories and analysis also available on ICIS platform
