India’s Group I heavy-grade base oil prices fall in Oct

: Oil products
25/11/03

Prices for India's Group I high-viscosity grade base oils fell in October from a month earlier because of rising supply availability.

India's Group I SN 500 cfr import prices averaged $902/t in October, down from $929/t in the previous month and $910/t a year earlier.

India's bright stock cfr import prices averaged $1,316/t in October, down from $1,339/t in September and up from $1,208/t a year earlier.

Lower heavy-grade prices reflect a seasonal slowdown because grades with lower viscosity are better suited for formulations used in the winter months.

India typically imports Group I supplies from the Mideast Gulf and Asia, in addition to consuming domestic volumes. Group I spot supplies from Asia have risen in the second half of the year, especially from China and Thailand because scheduled maintenances for the year have largely been completed. Some suppliers have also diverted surplus volumes from the US and Europe towards India in the second-half of the year.

The rise in supply is countering an anticipated tightness because of scheduled maintenance at a key refinery in Saudi Arabia from mid-November to December. Blenders in India have largely stocked up ahead of the maintenance.

Most spot offers have been for heavy grades. Spot supply of Group I SN 150 remains more limited and prices have risen. India's Group I SN 150 cfr import prices averaged $731/t in October, up from $725/t on the month but down from $763/t a year earlier.

The price rise for Group I SN 150 coincides with higher Group II N150 values in October. Several base oil producers have sought to optimise heavy-grade output because of higher premiums to gasoil values.

By Chng Li Li

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