India’s imports of very-light grade base oils rose to a two-year high in May, boosting their share of the country’s total base oils imports.Imports of more than 150,000 tonnes in May rose from less than 120,000 tonnes the previous month, provisional customs data showed. The volume was the highest since March 2022.The increase in supplies mostly reflected a surge in shipments from South Korea.Imports from the US also rose but remained relatively low. Shipments from the Middle East and Europe were steady.The size of the increase in imports of very light grades outpaced the rise in imports of Group II and Group III base oils in May and contrasted with a fall in Group I imports.The pick-up in shipments in May followed a sustained rise in the premium of CFR India N70 prices over Singapore gasoil prices from early February to the beginning of June.The firm premium boosted the incentive for Asia-Pacific refiners to maintain or increase output of very-light grade base oils during that period.The move raised the prospect of more such shipments moving to India at least in the month of June.But India’s demand for very light grades showed signs of lagging the rise in supply, with CFR India N70 outright prices falling steadily since early-May.Lower Singapore gasoil prices throughout May gave regional refiners the leverage to adjust their FOB cargo price offers in response.The dynamic changed this month, with the recent rebound in Singapore gasoil prices.The disconnect between lower CFR India N70 prices and higher feedstock and gasoil prices could prompt refiners to adjust output in response.Any such move would likely only start to impact India’s imports of very-light grade base oils in a few months’ time..India’s May base oils imports rise.India’s May Grp II base oil imports rise.India’s May lube demand rises
India’s imports of very-light grade base oils rose to a two-year high in May, boosting their share of the country’s total base oils imports.Imports of more than 150,000 tonnes in May rose from less than 120,000 tonnes the previous month, provisional customs data showed. The volume was the highest since March 2022.The increase in supplies mostly reflected a surge in shipments from South Korea.Imports from the US also rose but remained relatively low. Shipments from the Middle East and Europe were steady.The size of the increase in imports of very light grades outpaced the rise in imports of Group II and Group III base oils in May and contrasted with a fall in Group I imports.The pick-up in shipments in May followed a sustained rise in the premium of CFR India N70 prices over Singapore gasoil prices from early February to the beginning of June.The firm premium boosted the incentive for Asia-Pacific refiners to maintain or increase output of very-light grade base oils during that period.The move raised the prospect of more such shipments moving to India at least in the month of June.But India’s demand for very light grades showed signs of lagging the rise in supply, with CFR India N70 outright prices falling steadily since early-May.Lower Singapore gasoil prices throughout May gave regional refiners the leverage to adjust their FOB cargo price offers in response.The dynamic changed this month, with the recent rebound in Singapore gasoil prices.The disconnect between lower CFR India N70 prices and higher feedstock and gasoil prices could prompt refiners to adjust output in response.Any such move would likely only start to impact India’s imports of very-light grade base oils in a few months’ time..India’s May base oils imports rise.India’s May Grp II base oil imports rise.India’s May lube demand rises
