Pakistan’s base oils supply rose to a seven-month high in November, helping to meet a pick-up in the country’s lube consumption.The prospect of demand extending its revival, along with Pakistan’s limited base oils production capacity, boosted the attraction for overseas suppliers to target the country with more shipments.The scenario already showed signs of triggering a rise in competition among key overseas suppliers for a larger share of the growing market.Pakistan’s base oils supply, or domestic output and imports combined, rose to close to 45,000 tonnes in November, OCAC and customs data showed.The volume rose for the fifth time in six months from year-earlier levels to the highest since last April.Imports accounted for more than 72% of the total for a fourth month. The share was up from 67% during the first seven months of the year.Imports’ share of supply rose even as Pakistan’s domestic base oils output also rose in second-half 2024.But the more limited increase in output pointed to a growing need for overseas supplies to cover the rise in the country's lube requirements.Pakistan’s lack of premium-grade base oils production capacity added to the reliance on more supplies from overseas markets.The need for additional overseas supplies could continue to rise amid numerous signs of improving economic activity as lower inflation gave the central bank more room to cut interest rates.The drop in inflation and interest rates in turn coincided with an increasingly prolonged rebound in Pakistan’s automobile sales, as well as steadier industrial production growth.Improving economic activity supported firmer lube consumption, which rose in October and November.South Korea was Pakistan’s largest overseas base oils supplier in November for a second month, with Singapore the second largest.Pakistan also continued to take delivery of increasingly regular shipments from the US in November. All the supplies consisted of Group II heavy grades..US’ Nov base oils/lube exports slip.S Korea Nov base oils exports hold firm.Pakistan's Sept base oils imports fall
Pakistan’s base oils supply rose to a seven-month high in November, helping to meet a pick-up in the country’s lube consumption.The prospect of demand extending its revival, along with Pakistan’s limited base oils production capacity, boosted the attraction for overseas suppliers to target the country with more shipments.The scenario already showed signs of triggering a rise in competition among key overseas suppliers for a larger share of the growing market.Pakistan’s base oils supply, or domestic output and imports combined, rose to close to 45,000 tonnes in November, OCAC and customs data showed.The volume rose for the fifth time in six months from year-earlier levels to the highest since last April.Imports accounted for more than 72% of the total for a fourth month. The share was up from 67% during the first seven months of the year.Imports’ share of supply rose even as Pakistan’s domestic base oils output also rose in second-half 2024.But the more limited increase in output pointed to a growing need for overseas supplies to cover the rise in the country's lube requirements.Pakistan’s lack of premium-grade base oils production capacity added to the reliance on more supplies from overseas markets.The need for additional overseas supplies could continue to rise amid numerous signs of improving economic activity as lower inflation gave the central bank more room to cut interest rates.The drop in inflation and interest rates in turn coincided with an increasingly prolonged rebound in Pakistan’s automobile sales, as well as steadier industrial production growth.Improving economic activity supported firmer lube consumption, which rose in October and November.South Korea was Pakistan’s largest overseas base oils supplier in November for a second month, with Singapore the second largest.Pakistan also continued to take delivery of increasingly regular shipments from the US in November. All the supplies consisted of Group II heavy grades..US’ Nov base oils/lube exports slip.S Korea Nov base oils exports hold firm.Pakistan's Sept base oils imports fall
