India’s base oils supply fell to a seventeen-month low in July amid a simultaneous drop in output and imports.Lower supply contrasted with demand that held close to a two-year high for a fourth month and outpaced supply for a fifth month.An extension of the supply-shortfall into the start of the third quarter of the year raised the prospect of balancing out a seasonal dip in lube consumption in the month of August.The lack of any large supply-build would also boost buyers’ requirements for replenishment volumes for delivery in the final weeks of the third quarter in preparation for a seasonal pick-up in demand.India’s firmer base oils prices relative to FOB Asia prices pointed to such a trend.The premium of India’s imported Group II light-grade base oils cargo price over FOB NE Asia cargo prices rose in August to the highest since the start of the second quarter of the year, making the arbitrage more feasible. India’s supply fell as the country’s base oils output dipped to a three-year-low of 75,000 tonnes in July.The volume was down from more than 110,000 tonnes in May and in June.Output fell because of planned plant maintenance work in the country in July.Output levels likely rose in August following the completion of the maintenance work, that involved adding new production capacity to the plant.Lower output in July coincided with a drop in India’s base oils imports to a four-month low.Total supply duly dipped to less than 375,000 tonnes in July, from more than 415,000 tonnes in each of the previous three months.The country’s demand, or domestic consumption and exports combined, held at at least 470,000 tonnes in July for a fourth straight month.Before April, monthly demand had exceeded that level just once in the previous two years.Firm demand and lower supply widened the supply-shortfall to almost 100,000 tonnes in July.The shortfall was the fifth in a row and the largest in more than four years..India’s July lube demand holds firm.India’s July base oils imports fall
India’s base oils supply fell to a seventeen-month low in July amid a simultaneous drop in output and imports.Lower supply contrasted with demand that held close to a two-year high for a fourth month and outpaced supply for a fifth month.An extension of the supply-shortfall into the start of the third quarter of the year raised the prospect of balancing out a seasonal dip in lube consumption in the month of August.The lack of any large supply-build would also boost buyers’ requirements for replenishment volumes for delivery in the final weeks of the third quarter in preparation for a seasonal pick-up in demand.India’s firmer base oils prices relative to FOB Asia prices pointed to such a trend.The premium of India’s imported Group II light-grade base oils cargo price over FOB NE Asia cargo prices rose in August to the highest since the start of the second quarter of the year, making the arbitrage more feasible. India’s supply fell as the country’s base oils output dipped to a three-year-low of 75,000 tonnes in July.The volume was down from more than 110,000 tonnes in May and in June.Output fell because of planned plant maintenance work in the country in July.Output levels likely rose in August following the completion of the maintenance work, that involved adding new production capacity to the plant.Lower output in July coincided with a drop in India’s base oils imports to a four-month low.Total supply duly dipped to less than 375,000 tonnes in July, from more than 415,000 tonnes in each of the previous three months.The country’s demand, or domestic consumption and exports combined, held at at least 470,000 tonnes in July for a fourth straight month.Before April, monthly demand had exceeded that level just once in the previous two years.Firm demand and lower supply widened the supply-shortfall to almost 100,000 tonnes in July.The shortfall was the fifth in a row and the largest in more than four years..India’s July lube demand holds firm.India’s July base oils imports fall
