Pakistan’s base oils supply rose to a six-month high in August, highlighting the country’s importance as a key outlet for shipments from refiners in US and Asia.Pakistan's rising supply reflected and helped to meet a sustained pick-up in demand against the backdrop of healthy economic growth.That growth could slow and inflation could rise in the coming months because of flood-related damage during the third quarter of the year.Any such slowdown and impact on lubricants consumption could complicate overseas base oils refiners’ moves to line up outlets to absorb rising or surplus supplies, especially of Group II heavy grades.Pakistan’s total base oils supply, or production and imports combined, came to more than 42,000 tonnes in August, industry and customs data showed..The volume rose from year-earlier levels for the third time in four months to the highest since February.The rising volumes helped to lift Pakistan’s total supply by 6% in the first eight months of the year to close to 275,000 tonnes.The rising volume boosted the attraction for overseas refiners to target Pakistan with more base oils supplies..The country’s imports accounted for a rising share of those supplies, adding to the incentive for overseas suppliers to target Pakistan with more shipments.Group II heavy-grade base oils accounted for a growing share of the rising imports.A persistent surplus of Group II heavy-grade base oils in the US this year extended to the Asia-Pacific in recent months.The surplus could face additional upward pressure following the start-up of new Group II base oils production capacity in southeast Asia in recent weeks.The growing surplus, and Pakistan’s rising demand for Group II heavy grades, added to the importance for suppliers in Asia to boost their share of the country’s imports.Pakistan’s importance as a key outlet for surplus Group II heavy grades could in turn increase the impact of any slowdown in its requirements over the coming months..S Korea's August base oils output rises.US’ July base oils exports fall.India’s August base oils imports fall.Pakistan’s June base oils supply falls.Base Oil News stories and analysis also available on ICIS platform
