India’s base oils imports fell to a three-month low in June amid a slump in shipments from refiners in Asia.The slowdown contrasted with a rise in the country’s lube consumption that month.The diverging trends raised the prospect of working down faster the large base oils inventories that Indian buyers accumulated in April and May.Demand for overseas shipments is likely to revive once those stocks have reverted to more typical levels.Buying interest is likely to get a further boost as importers then start to rebuild inventories ahead of a seasonal pick-up in lube consumption from the end of the third quarter of the year. India’s base oils imports of 304,000 tonnes in June fell by 22% from close to 390,000 tonnes the previous month, provisional customs data showed.The May volume was the highest in more than two years and left the country’s supply far outpacing demand.The June volume helped to partially reverse that dynamic, mostly because of a slump in shipments from Asia.Total imports of around 172,000 tonnes from the region in June fell at a steeper 34% pace from more than 260,000 tonnes in May to the lowest in eight months.Imports from South Korea fell to a four-month low in June. Shipments from Singapore fell to a one-year low.The drop in shipments followed a sustained fall in CFR India Group II base oils prices relative to FOB NE Asia prices from the beginning of April to end-May.The narrowing price-spread coincided with and reflected Indian buyers' waning demand for overseas supplies.It also cut the attraction of moving more shipments to the country.Overseas refiners then faced the choice of redirecting shipments to other markets or of cutting production.An unusually steep slump in South Korea’s base oils exports in June suggested that some refiners duly trimmed run-rates that month.India’s base oils imports would have fallen even more in June but for a further rise in shipments from the US to a seven-month high.There were signs of a subsequent slowdown in flows from that market to India.Imports also got support from a pick-up in shipments of Russian origin to a three-month high of more than 9,000 tonnes..S Korea’s June base oils exports fall.India’s June lube demand rises
India’s base oils imports fell to a three-month low in June amid a slump in shipments from refiners in Asia.The slowdown contrasted with a rise in the country’s lube consumption that month.The diverging trends raised the prospect of working down faster the large base oils inventories that Indian buyers accumulated in April and May.Demand for overseas shipments is likely to revive once those stocks have reverted to more typical levels.Buying interest is likely to get a further boost as importers then start to rebuild inventories ahead of a seasonal pick-up in lube consumption from the end of the third quarter of the year. India’s base oils imports of 304,000 tonnes in June fell by 22% from close to 390,000 tonnes the previous month, provisional customs data showed.The May volume was the highest in more than two years and left the country’s supply far outpacing demand.The June volume helped to partially reverse that dynamic, mostly because of a slump in shipments from Asia.Total imports of around 172,000 tonnes from the region in June fell at a steeper 34% pace from more than 260,000 tonnes in May to the lowest in eight months.Imports from South Korea fell to a four-month low in June. Shipments from Singapore fell to a one-year low.The drop in shipments followed a sustained fall in CFR India Group II base oils prices relative to FOB NE Asia prices from the beginning of April to end-May.The narrowing price-spread coincided with and reflected Indian buyers' waning demand for overseas supplies.It also cut the attraction of moving more shipments to the country.Overseas refiners then faced the choice of redirecting shipments to other markets or of cutting production.An unusually steep slump in South Korea’s base oils exports in June suggested that some refiners duly trimmed run-rates that month.India’s base oils imports would have fallen even more in June but for a further rise in shipments from the US to a seven-month high.There were signs of a subsequent slowdown in flows from that market to India.Imports also got support from a pick-up in shipments of Russian origin to a three-month high of more than 9,000 tonnes..S Korea’s June base oils exports fall.India’s June lube demand rises