South Korea’s base oils exports to India rebounded in August, boosting the country’s depleted supply ahead of a seasonal pick-up in demand at the end of the third quarter.Total base oils exports of 115,000 tonnes to India in August rose from less than 72,000 tonnes in June and in July, government data showed.The volume was the highest since May, the second highest in ten months and third highest in thirty-four months.The rise in exports to India was timely.For South Korean refiners, the shipments helped to trim a build-up of supplies after output far outpaced exports during the previous two months.For India, the additional shipments helped to plug a shortfall after the country’s base oils supply lagged demand for five straight months to July.The shortfall showed signs of extending into August, when stronger-than-usual demand contrasted with a dip in base oils imports to a seventeen-month low.India’s increasingly firm light-grade base oils prices relative to FOB Asia prices in recent months reflected signs of tighter supply fundamentals.The premium of CFR India Group II light-grade base oils prices over FOB NE Asia prices widened in August to the highest in four months.The surge in exports from South Korea to India coincided with signs of a pick-up in shipments from Saudi Arabia to the country in September, as well as a revival in flows of paraffinic base oils from the US to India.The recovery in shipments raised the prospect of replenishing India’s base oils supplies ahead of an expected pick-up in demand during the festive season over the coming months.Easing supply tightness would curb buyers’ urgency to lock in additional shipments.The CFR India N150 price premium to FOB NE Asia prices fell in mid-September for the first time in more than three months, pointing to signs of easing demand..S Korea’s August base oils exports rise.India’s August base oils imports fall
South Korea’s base oils exports to India rebounded in August, boosting the country’s depleted supply ahead of a seasonal pick-up in demand at the end of the third quarter.Total base oils exports of 115,000 tonnes to India in August rose from less than 72,000 tonnes in June and in July, government data showed.The volume was the highest since May, the second highest in ten months and third highest in thirty-four months.The rise in exports to India was timely.For South Korean refiners, the shipments helped to trim a build-up of supplies after output far outpaced exports during the previous two months.For India, the additional shipments helped to plug a shortfall after the country’s base oils supply lagged demand for five straight months to July.The shortfall showed signs of extending into August, when stronger-than-usual demand contrasted with a dip in base oils imports to a seventeen-month low.India’s increasingly firm light-grade base oils prices relative to FOB Asia prices in recent months reflected signs of tighter supply fundamentals.The premium of CFR India Group II light-grade base oils prices over FOB NE Asia prices widened in August to the highest in four months.The surge in exports from South Korea to India coincided with signs of a pick-up in shipments from Saudi Arabia to the country in September, as well as a revival in flows of paraffinic base oils from the US to India.The recovery in shipments raised the prospect of replenishing India’s base oils supplies ahead of an expected pick-up in demand during the festive season over the coming months.Easing supply tightness would curb buyers’ urgency to lock in additional shipments.The CFR India N150 price premium to FOB NE Asia prices fell in mid-September for the first time in more than three months, pointing to signs of easing demand..S Korea’s August base oils exports rise.India’s August base oils imports fall