Published by VAS Tribology Solutions

Base Oil Report

Origin wise Base Oil import to India, Country and percent - September 2020

India's October crude oil imports posted their steepest fall since July and seventh consecutive monthly year-on-year decline as rising COVID-19 cases limited mobility and curbed consumption. When we come across such a huge fall (in imports), it generally points towards the fact that the existing demand is already being met by inventory from prior months." The import of oil products also slumped 53% to 1.65 million tonnes in October. Meanwhile, exports of refined products fell 35.7% in October from a year ago to 3.84 million tonnes and were down 20% from 4.80 million tonnes in September.

The Indian domestic market Korean origin Group II plus N-60–70/150/500 price at the current level is marginally up for lighter grades and heavier grades. As per conversation with domestic importers and traders prices for N – 70/ N- 150/ N - 500 grades and at the current level are quoted in the range of Rs. 46.85 – 47.00/46.85– 47.00/50.95 – 51.10 per litre in bulk plus 18% GST as applicable. The above-mentioned prices are offered by a manufacturer who also offers the grades in the domestic market, while another importer trader is offering the grades cheaper by Rs.0.30 – 0.35 per litre on basic prices. Light Liquid Paraffin (IP) is priced at Rs.47.30 – 47.45 per litre in bulk and Heavy Liquid paraffin (IP) is Rs.54.35 – 54.50 per litre in bulk respectively plus GST as applicable.

While in the month of September 2020, India imported 378614 MT of Base Oil, India imported the huge quantum in small shipments on different ports like 164708 MT (44%) into Mumbai, 56257 MT (15%) into Pipavav, 46310 MT (12%) into Hazira, 38578 MT (10%) into JNPT, 27573 MT (7%) into Chennai, 22471 MT (6%) into Mundra, 8305 MT (2%) into Kandla, 7948 MT (2%) into Kolkata, 3135 MT (1%) into Ennore and 3329 MT (1%) into Other Ports.

Month wise import of Base Oil in India
Base Oil Group I & Group II CFR India prices in USD/PMT
Month N-70 Korea Origin Bright stock USA Origin N-500 Singapore Origin RPO Drums (Aromatic Extract) CFR
September 2020 490—500 590—620 540—560 250—260
October 2020 460—480 630—670 560—580 245—260
November 2020 560—585 660—705 580—605 250—260
Since September 2020, prices have increased by USD in November 2020 75 PMT (15%) USD 75 PMT (10%) USD 40 PMT (7%) Remained steady
About the Author

Dhiren Shah

Dhiren Shah is a Chemical Engineer and Editor-in-Chief of Petrosil Group, who started his career with a reputed transformer oil manufacturing company in India as Sales Engineer and enhanced his knowledge by undergoing a business management course at the Indian Merchants Chamber. He later ventured and specialized in imports and logistics of petroleum products for 10 years and in 2002 became part of the Petrosil Group. He is instrumental in developing the various Petrosil brands. He loves to read and travel and is also an avid internet surfer. Contact Dhiren at dhiren@petrosil.com

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