India’s lube demand stayed relatively firm in July, sustaining blenders' requirements for base oils supplies from domestic and overseas refiners.Strong lube demand kept the country’s base oils supply tighter than usual since the start of the second quarter, even with a pick-up in base oils imports in April and May.An upward revision to India’s lube consumption volumes in the second quarter left supply even tighter.Lube consumption of 362,000 tonnes in July edged down from a revised 365,000 tonnes the previous month, government data showed.The revision lifted demand to 1.21 million tonnes in the second quarter of the year, up more than 20% from the previous level of around 980,000 tonnes.The higher demand in turn left India with a base oils supply shortfall for four straight months to June.India’s steady lube demand in July then coincided with scheduled maintenance work on a base oils unit in the country.The plant shutdown raised the prospect of the tight supply-demand balance extending into last month.An expected seasonal slowdown in India’s lube demand in August curbed blenders’ urgency to replenish stocks for this month.Even so, they faced the prospect of replenishing lower inventories to prepare for a seasonal pick-up in lube consumption from the end of the third quarter of the year.Signs of firm shipment volumes from sources like Singapore, Taiwan and South Korea in recent weeks suggested that those replenishment moves have already begun.Firm lube demand in July and rising consumption in the second quarter of the year coincided with a sustained increase in the country’s automobile sales.Passenger-vehicle sales rose by 10% in July from a year earlier and two-wheeler sales by 17%.The two-wheeler segment got a boost from strong rural economic growth, positive monsoon effects, and government support programs, according to the Federation of Automobile Dealers Associations..India’s June base oils supply lags demand
India’s lube demand stayed relatively firm in July, sustaining blenders' requirements for base oils supplies from domestic and overseas refiners.Strong lube demand kept the country’s base oils supply tighter than usual since the start of the second quarter, even with a pick-up in base oils imports in April and May.An upward revision to India’s lube consumption volumes in the second quarter left supply even tighter.Lube consumption of 362,000 tonnes in July edged down from a revised 365,000 tonnes the previous month, government data showed.The revision lifted demand to 1.21 million tonnes in the second quarter of the year, up more than 20% from the previous level of around 980,000 tonnes.The higher demand in turn left India with a base oils supply shortfall for four straight months to June.India’s steady lube demand in July then coincided with scheduled maintenance work on a base oils unit in the country.The plant shutdown raised the prospect of the tight supply-demand balance extending into last month.An expected seasonal slowdown in India’s lube demand in August curbed blenders’ urgency to replenish stocks for this month.Even so, they faced the prospect of replenishing lower inventories to prepare for a seasonal pick-up in lube consumption from the end of the third quarter of the year.Signs of firm shipment volumes from sources like Singapore, Taiwan and South Korea in recent weeks suggested that those replenishment moves have already begun.Firm lube demand in July and rising consumption in the second quarter of the year coincided with a sustained increase in the country’s automobile sales.Passenger-vehicle sales rose by 10% in July from a year earlier and two-wheeler sales by 17%.The two-wheeler segment got a boost from strong rural economic growth, positive monsoon effects, and government support programs, according to the Federation of Automobile Dealers Associations..India’s June base oils supply lags demand
