Pakistan’s base oils supply held firm in July, adding to signs of a more sustained recovery in the country’s economic growth.Increasingly firm demand for Group II heavy-grade base oils also boosted the country’s importance as a key outlet for overseas Group II refiners.Base oils supply, or domestic production and imports combined, held at more than 31,000 tonnes in July, industry and customs data showed.The volume edged down from more than 32,500 tonnes the previous month but still rose by 8% and for the third time in four months from year-earlier levels.Firmer supply coincided with rising lube consumption, which also rose in July for the third time in four months.Rising lube demand mirrored firmer industrial production and a recovery in Pakistan’s automobile sales since the start of the year.Economic growth is likely to get further support from easing inflation and a drop in interest rates in July for just the second time in four years.An extended recovery in economic activity is likely to support firm lube consumption and steady demand for more base oils supplies to meet that consumption.Any such trend would provide additional support for Pakistan’s base oils imports, which account for more than 60% of the country’s supply.Any pick-up in imports would in turn likely add to the country’s demand for Group II heavy-grade base oils.Shipments of Group II heavy neutrals accounted for more than 60% of the country’s total imports in July for a third straight month.The share was up from an already-high 50% share in 2023 and a 32% share in 2022.The large share magnified the importance of Pakistan as an outlet for Group II heavy-grade base oils, even compared with much larger markets like India.That country’s total base oils imports were more than fourteen times larger than Pakistan’s imports in July.But its Group II heavy-grade imports of more than 45,000 tonnes were less than four times larger than Pakistan’s imports of the same grade..India’s July Group II imports stay lower
Pakistan’s base oils supply held firm in July, adding to signs of a more sustained recovery in the country’s economic growth.Increasingly firm demand for Group II heavy-grade base oils also boosted the country’s importance as a key outlet for overseas Group II refiners.Base oils supply, or domestic production and imports combined, held at more than 31,000 tonnes in July, industry and customs data showed.The volume edged down from more than 32,500 tonnes the previous month but still rose by 8% and for the third time in four months from year-earlier levels.Firmer supply coincided with rising lube consumption, which also rose in July for the third time in four months.Rising lube demand mirrored firmer industrial production and a recovery in Pakistan’s automobile sales since the start of the year.Economic growth is likely to get further support from easing inflation and a drop in interest rates in July for just the second time in four years.An extended recovery in economic activity is likely to support firm lube consumption and steady demand for more base oils supplies to meet that consumption.Any such trend would provide additional support for Pakistan’s base oils imports, which account for more than 60% of the country’s supply.Any pick-up in imports would in turn likely add to the country’s demand for Group II heavy-grade base oils.Shipments of Group II heavy neutrals accounted for more than 60% of the country’s total imports in July for a third straight month.The share was up from an already-high 50% share in 2023 and a 32% share in 2022.The large share magnified the importance of Pakistan as an outlet for Group II heavy-grade base oils, even compared with much larger markets like India.That country’s total base oils imports were more than fourteen times larger than Pakistan’s imports in July.But its Group II heavy-grade imports of more than 45,000 tonnes were less than four times larger than Pakistan’s imports of the same grade..India’s July Group II imports stay lower
