India’s base oils supply lagged demand in August for a sixth month as firm demand and lower imports outweighed a pick-up in the country’s base oils output.The shortfall raised the prospect of cutting blenders’ stocks at a time of year when they typically rise.The dynamic left them with lower inventories ahead of a seasonal pick-up in demand from the end of the third quarter of the year.India’s base oils production of 106,000 tonnes in August rose from a three-year low of 75,000 tonnes the previous month, government data showed.Output fell in July because of scheduled maintenance work that involved adding new capacity to a base oils unit.Base oils output recovered in August following the completion of the maintenance work.The impact of the increased production capacity is likely to be felt more from early next year.The rise in output barely covered for the drop in India’s base oils imports in August.The country’s total base oils supply, or output and imports combined, duly edged up to 375,000 tonnes in August, from 371,000 tonnes the previous month.India’s demand, or domestic consumption and exports combined, also edged up in August, climbing to close to 490,000 tonnes, from 480,000 tonnes the previous month.The shortfall of supply to demand duly widened to more than 110,000 tonnes in August. The last time supply exceeded demand was in February.The sustained shortfall mostly reflected India’s strong rise in lube consumption since the second quarter of the year.The firmer demand then coincided with domestic plant maintenance work and a slowdown in base oils imports from June.The shortfall left blenders needing to replenish their inventories in preparation for a seasonal pick-up in consumption over the coming months.The premium of India’s imported Group II light-grade base oil cargo price over FOB NE Asia prices rebounded from end-May.The widening base oil premium coincided with the country’s growing supply shortfall since June. .India’s August base oils imports fall.India’s Aug lube demand holds firm
India’s base oils supply lagged demand in August for a sixth month as firm demand and lower imports outweighed a pick-up in the country’s base oils output.The shortfall raised the prospect of cutting blenders’ stocks at a time of year when they typically rise.The dynamic left them with lower inventories ahead of a seasonal pick-up in demand from the end of the third quarter of the year.India’s base oils production of 106,000 tonnes in August rose from a three-year low of 75,000 tonnes the previous month, government data showed.Output fell in July because of scheduled maintenance work that involved adding new capacity to a base oils unit.Base oils output recovered in August following the completion of the maintenance work.The impact of the increased production capacity is likely to be felt more from early next year.The rise in output barely covered for the drop in India’s base oils imports in August.The country’s total base oils supply, or output and imports combined, duly edged up to 375,000 tonnes in August, from 371,000 tonnes the previous month.India’s demand, or domestic consumption and exports combined, also edged up in August, climbing to close to 490,000 tonnes, from 480,000 tonnes the previous month.The shortfall of supply to demand duly widened to more than 110,000 tonnes in August. The last time supply exceeded demand was in February.The sustained shortfall mostly reflected India’s strong rise in lube consumption since the second quarter of the year.The firmer demand then coincided with domestic plant maintenance work and a slowdown in base oils imports from June.The shortfall left blenders needing to replenish their inventories in preparation for a seasonal pick-up in consumption over the coming months.The premium of India’s imported Group II light-grade base oil cargo price over FOB NE Asia prices rebounded from end-May.The widening base oil premium coincided with the country’s growing supply shortfall since June. .India’s August base oils imports fall.India’s Aug lube demand holds firm
