India’s base oils imports rose to a fourteen-month high in July amid a surge in supplies from South Korea.Shipments from Singapore, UAE and US also held firm.Total imports came to close to 390,000 tonnes in July, provisional customs data showed..The volume rose for the fourth time in five months from year-earlier levels and held above the 370,000-tonnes level for the third time in four months.That level was well above typical import volumes of around 315,000 tonnes/year in 2024.The sustained pick-up in imports helped to cover for India’s growing lube consumption and for a protracted round of base oils plant-maintenance in the country.The maintenance began early this year and extended into the third quarter.The rise in shipments in July helped to balance out a supply-shortfall the previous month and to cover for unusually firm domestic lube consumption at the start of the third quarter.The strong lube demand curbed blenders’ moves to replenish low stocks. The rise in shipments to India also slowed the pace of any build-up of surplus volumes in the Asia-Pacific region at a time of year when such a build-up often occurs..Firm demand in markets like India duly cut Asia refiners’ need to target more distant markets with any surplus shipments.India's July imports included an unusually large volume of very-light grade base oils.Demand for these supplies often rises when India’s domestic retail diesel prices maintain or widen a steep premium to imported light-grade cargo prices.That premium remained unusually firm so far this year.India’s imports also included a large volume of supplies from the US. Shipments of Group II base oils accounted for a large portion of the US supplies in the first half of the year.Group I base oils instead accounted for a larger share than Group II base oils in July, with most of the volume consisting of brightstock.The rise in shipments of the heavy-grade product followed a drop in US brightstock export prices to a discount to CFR India prices early this year.The discount widened steadily over the following months, making more feasible the arbitrage to move brightstock supplies to India.The pick-up in supplies helped to balance out a pause in brightstock shipments from Thailand to India in recent months..S Korea's June exports to India rise.India’s July lube demand rises.US June base oils/lube exports fall.Asia base oils supply outlook: Week of 11 August.Base Oil News stories and analysis also available on ICIS platform
