India’s lube demand rose for a fourth month in October, keeping pressure on blenders’ stocks and extending their need to procure additional base oils feedstock supplies.
Ongoing demand for additional base oils shipments would provide a welcome boost for overseas suppliers ahead of a likely pick-up in surplus volumes from the US and Asia over the coming months.
An open arbitrage to move base oils shipments to India from Asia and from the US pointed to such ongoing buying interest.
India’s lube consumption of 363,000 tonnes in October rose by 5% from year-earlier levels, government data showed.
The rise in demand lifted total consumption to 3.88 million tonnes in the first ten months of the year, up 4% from year-earlier levels.
The sustained rise in India’s lube consumption could extend at least through the fourth quarter of the year as the festive season, a strong monsoon and tax-cuts spur stronger consumer demand.
India’s automobile sales rose by an unusually-steep 40% in October to a record-high, reflecting the boost in demand from those various factors.
Strong lube demand in turn raised the prospect of keeping pressure on blenders’ stocks and their need to carry on procuring additional base oils supplies to keep inventories at healthy levels.
