India’s lube demand rose in September for the fifth time in six months, keeping pressure on domestic and imported base oils supply to keep pace.Lube consumption of 364,000 tonnes in September rose by 7% from year-earlier levels, provisional government data showed.Consumption of 1.04 million tonnes in the third quarter fell by 19% from 1.29 million tonnes during the previous three months as activity slowed during the monsoon season.India’s lube consumption typically then rises in the fourth quarter following the end of the monsoon rains and during a wave of festivals in the final months of the year.The slowdown in lube demand in the third quarter from the previous three months cushioned the impact of a drop in the country’s base oils supply in recent months compared with the second quarter. But the rise in demand from year-earlier levels continued to outpace the country’s relatively steady supply so far this year.The contrasting trends left supply lagging demand throughout most of the year.Any seasonal pick-up in demand in the fourth quarter of the year could exacerbate the supply shortfall unless India’s base oils output and imports rise more strongly.The dynamic highlighted the growing need for the expected rise in India’s base oils output over the coming year as new production capacity starts operations.It also highlighted the country’s ongoing need for large volumes of base oils from overseas markets, at least in the interim.India’s base oils imports instead trended lower from June.Imports are likely to stay lower at least at the start of the fourth quarter of the year because of maintenance work at a base oils plant in South Korea. The plant is a key source of supplies for buyers in India..India’s Aug base oils supply lags demand.India’s August base oils imports fall.S Korea Aug base oil output edges down.Base Oil News stories and analysis also available on ICIS platform
