India’s lube demand fell in February for a second month, curbing blenders’ urgency to secure additional base oils supplies from overseas markets.A persistent surplus of base oils supply over demand in recent months left blenders in India with healthy inventories.Healthy stocks and signs of slower lube consumption coincided with relatively rangebound CFR India prices for most base oils grades so far this year.Lube demand also faced the prospect of slowing further from the start of the second quarter of the year after an expected seasonal rise in consumption in the month of March.Slower demand and healthy supplies cut the incentive for blenders to add to their stocks unless prices were at competitive levels.The country’s lube consumption of 322,000t in February fell by 7pc from year-earlier levels, government data showed. It was down from 324,000t the previous month.The slower lube demand in recent months followed a drop in India’s core industrial output growth rate in January to its slowest in more than a year.The country’s automobile sales rose in February for a fourth month. But sales of electric rickshaws drove most of the growth in sales of three-wheeler vehicles.Dealers' inventories of passenger vehicles also remained elevated. The slowdown in lube consumption is expected to be temporary.Lube demand is forecast to continue to rise this year as it benefits from the country’s rapid economic growth..India’s Jan base oils supply exceeds demand
India’s lube demand fell in February for a second month, curbing blenders’ urgency to secure additional base oils supplies from overseas markets.A persistent surplus of base oils supply over demand in recent months left blenders in India with healthy inventories.Healthy stocks and signs of slower lube consumption coincided with relatively rangebound CFR India prices for most base oils grades so far this year.Lube demand also faced the prospect of slowing further from the start of the second quarter of the year after an expected seasonal rise in consumption in the month of March.Slower demand and healthy supplies cut the incentive for blenders to add to their stocks unless prices were at competitive levels.The country’s lube consumption of 322,000t in February fell by 7pc from year-earlier levels, government data showed. It was down from 324,000t the previous month.The slower lube demand in recent months followed a drop in India’s core industrial output growth rate in January to its slowest in more than a year.The country’s automobile sales rose in February for a fourth month. But sales of electric rickshaws drove most of the growth in sales of three-wheeler vehicles.Dealers' inventories of passenger vehicles also remained elevated. The slowdown in lube consumption is expected to be temporary.Lube demand is forecast to continue to rise this year as it benefits from the country’s rapid economic growth..India’s Jan base oils supply exceeds demand