Indian Domestic Refiners Base Oils Group I & II Prices May Gain Ground from April 2013
The Indian Base Oil Market remains steady with inventories at optimum levels with surplus of imported grades. During the month of January 2013, approximately 138195 MT of Base Oils of all the grades have been procured at Indian Ports which is substantially down from November 2012, which was 191856 MT.
The Indian Base Oil Market remains steady with inventories at optimum levels with surplus of imported grades. During the month of January 2013, approximately 138195 MT of Base Oils of all the grades have been procured at Indian ports which is substantially reduced as compared to November 2012, where it was 191856 MT. Major imports are from Korea, Singapore, USA, UAE, Iran, Taiwan, France, UK, Netherlands, Japan, Italy, Belgium, etc. Indian State Oil PSU viz. the IOC and HPCL have marked up their base oil prices for Group I & II approximately by Rs 0.75/0.75/0.75/0.75 per liter on their basic price for their grades SN 70-H-70/SN-150-H-150/SN-500-H-500/ Bright stock effective March 1, 2013.
The BPCL prices for Mak Base N -65/500 increased to Rs 2.50/0.25 per liter, whereas N -150 reduced to Rs 0.35 per liter. Prices remained unchanged for the second half of March 2013. It is also signifi cant to note that Indian currency has reduced down to Rs 54.55 against the USD. Hefty discounts are being offered by the refiners which are in the range of Rs.12.00 – 15.00 per liter for buyers who commit to lift more than 1500 MT.
Group I Base Oil prices for neutrals SN -150/500 (Russian and Iranian origin) are being offered in the domestic market at Rs. 50-90 – 51.70/51.70 – 51.90 per liter (excise duty and VAT as applicable) Ex-Silvassa in bulk for one tanker load. Availability at present is not a concern.
Indian Base Oil Prices of State Oil PSU's viz. Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd. during the period Oct to Dec 2012 were competitive with respect to imported cargoes. This will continue till the financial year end i.e. March 2013. From April 2013, there may be reversal in trend and prices may rise from the current level.
The Indian domestic market, Korean Origin Group II plus N-60-70/150/500 prices increased marginally. As per discussion with the domestic importers and traders, the prices have gone up for all the above grades and the current levels are quoted in the range of Rs. 49.20-49.75/51.50-51.90/52.70-52.80 per liter in bulk respectively with an additional 14 percent excise duty and VAT as applicable. No Sales Tax/ Vat is charged if products are offered Ex-Silvassa which is a tax free zone. The above mentioned price is offered by a manufacturer who also offers the grades in the domestic market. Another import trader offers the same grades which is cheaper by Rs. 0.25-0.35 per liter on basic prices. 'Light Liquid Paraffin' (IP) is priced at Rs. 49.80 - 50.15 per liter in bulk and Heavy Liquid paraffin' (IP) at Rs. 58.75-58.95 per liter in bulk respectively excluding taxes.
Base Oil Group I of Iranian Origin is mostly preferred by Indian buyers as the shipment to India takes less time and the cargoes are also priced competitively. Base Oil Group II is mostly consumed by Indian industries which are sourced from USA, South Korea and Taiwan.
Bright Stock-150 CFR India prices were oscillating in the range of: USD 1250 – 1265 PMT in October 2012, USD 1200 – 1215 PMT in November and USD 1090 – 1105 PMT in December 2012. Since October 2012, price has decreased by USD 160 PMT (13%) in December 2012.
Group I-SN 500 Base Oil CFR India prices were hovering in the range of USD 1045 – 1060 PMT in October 2012, USD 1015 – 1030 PMT in November and USD 905 – 920 PMT in December 2012. Since October 2012, prices have reduced to USD 140 PMT (13%) in December 2012.
Group II J-500 CFR India prices were hovering in the range of USD 1145 – 1160 PMT in October 2012, USD 1100 – 1105 PMT in November and USD 1025 – 1040 PMT in December 2012. Since January 2012, prices have gone down by USD 120 PMT (10%) in December 2012.
Transformer Oil Base Stock-60 CFR India prices were oscillating in the range of USD 1035 – 1050 PMT in October 2012, USD 995 – 1010 PMT in November and USD 945 – 960 PMT in December 2012. Since January 2012, prices have fallen down by USD 90 PMT (9%) in December 2012.
Indian State Oil PSU's IOC/HPCL/ BPCL prices are mostly determined on import parity basis. They offer substantial discounts on the listed price for lifting more than 1500 MT by the buyers.
HPCL Group I Base Oil SN-70 (Alprol 12) basic price during the month of October 2012 was Rs.66.15 per liter, in November it was Rs.64.95 per liter and in December 2012 Rs.64.45 per liter. Since October 2012, prices dipped down by 3% in December 2012. SN-150 (Alprol 32) prices were Rs.63.95 per liter in October 2012, Rs.62.75 per liter in November and Rs.62.25 per liter in December 2012. Since October 2012, prices went down by 3% in December 2012. SN-500 (Alprol 100) prices were Rs.65.66 per liter in October 2012, Rs.64.76 per liter in November, and Rs.64.06 per liter in December 2012. Since October 2012, prices decreased by 2% in December 2012. Bright Stock-460 prices were Rs.77.95 per liter in October 2012, Rs.77.35 per liter in November and Rs.77.45 per liter in December 2012. Since October 2012, prices went down by 1% in December 2012.
IOC Group I & II Base Oil SN-70 basic prices during October 2012 was Rs.65.80 per liter in November Rs.64.60 per liter, in December 2012 Rs.64.10 per liter. Since October 2012 prices dipped down by 3% in December 2012. SN-150 prices were Rs.78.10 per liter in October 2012, Rs.76.90 per liter in November, and Rs.76.40 per liter in December 2012. Since October 2012, prices went down by 2% in December 2012. SN-500 prices were Rs.72.10 per liter in October 2012, Rs.71.20 per liter in November and Rs.70.50 per liter in December 2012. Since October 2012, prices decreased by 2% in December 2012. Bright Stock-150 prices were Rs.77.11 per liter in October 2012, Rs.76.51 per liter in November, and Rs.76.61 per liter in December 2012. Since October 2012, prices went down by 1% in December 2012. H-70 (Group II) prices were Rs.68.36 per liter in October 2012, Rs.67.16 per liter in November and Rs.66.66 per liter in December 2012. Since October 2012, prices fallen down by 3% in December 2012. H-150 (Group II) prices were Rs.67.25 per liter in October 2012, Rs.66.05 per liter in November and Rs.65.55 per liter in December 2012. Since October 2012, prices decreased by 3% in December 2012. H-500 (Group II) prices were Rs.71.46 per liter in October 2012, Rs.70.56 per liter in November and Rs.69.86 per liter in December 2012. Since October 2012, prices dipped down by 2% in December 2012.
BPCL Group II+ Base Oil MAK Base N-65 basic prices during October 2012 was Rs.71.50 per liter, in November Rs.72.70 per liter, in December 2012 Rs.70.90 per liter. Since October 2012, prices hiked by 1% in December 2012. MAK Base N-150 prices were Rs.65.80 per liter in October 2012, Rs.67.00 per liter in November and Rs.65.80 per liter in December 2012. Since October 2012, prices remained status quo in December 2012. MAK Base N-500 prices were Rs.67.80 per liter in October 2012, Rs.69.00 per liter in November and Rs.68.00 per liter in December 2012. Since October 2012, prices decreased by 1% in December 2012.
India's appetite for Base Oil continues to grow rapidly. Total Base Oil Imports during the quarter October to December 2012 was approximately 519914 MT which comprised of Base Oil Groups I, II, III and all the Grades. The country imported 188959 MT of Base Oil in October 2012, 191856 MT in November and 139099 MT in December 2012. Imports of Lighter Grades Group I and II Base Oils N-60/70/TOBS/SN-70/SN-90 comprised 45% of the total Base Oil Imports, while Group II J-150/N-100/N-150/N-250 comprised 25% and J-500/ N-500/N-600 was 6% of total base oil imports during the period October to December 2012.
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