MACHINERY LUBRICATION- INDIA MARCH-APRIL 2020 | Page 38

BASE OIL REPORT BASE OIL REPORT Indian markets followed the global equities meltdown. While shares of most domestic oil marketing companies (OMCs) rose, oil and gas explorers saw a severe sell-off. The fall in crude oil prices has placed major consumers such as India at an advantage. India is the world’s third-largest crude oil buyer and the fourth-largest liquefied natural gas importer. Brent fell to $31.02 a barrel, before recovering partially to trade at $35.36 per barrel, a far cry from the high of $147 a barrel in July 2008. The West Texas Intermediate (WTI) was at $31.79 per barrel. The Indian domestic market Korean origin Group II plus N-60–70/150/500 prices 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 Rupees 42.95 – 43.10/43.70 – 43.85/48.60 – 48.75 per litre in bulk plus 18% GST as applicable. Discounts being offered for sizeable quantity. 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.44.25 – 44.40 per litre in bulk and Heavy Liquid paraffin (IP) is Rs.50.25 – Month wise import of Base Oil in India 50.35 per litre in bulk respectively plus GST as applicable. While in the month of January 2020, India imported 302773 MT of Base Oil, India imported the huge quantum in small shipments on different ports like 181877 MT (60%) into Mumbai, 23623 MT (8%) into Hazira, 22327 MT (7%) into JNPT, 20042 MT (7%) into Chennai, 19825 MT (7%) into Pipavav, 15463 MT (5%) into Mundra, 13473 MT (4%) into Kolkata, 3647 MT (1%) into Kandla and 2496 MT (1%) into Other Ports. Dhiren Shah (Editor – In – Chief of Petrosil Group) E-mail- [email protected] Origin wise Base Oil import to India, Country and %- January 2020 Base Oil Group I & Group II CFR India prices:- Group I - SN 500 Iran Origin Base Oil CFR India Prices January 2020 USD 580 – 590 PMT February 2020 USD 560 – 570 PMT March 2020 USD 550 – 560 PMT Since January 2020, prices have decreased by USD 30 PMT (5%) in March 2020. Month 36 | March - April 2020 | Napthenic Base Oil HYGOLD L 500 US Origin CFR India Prices USD 635 – 645 PMT USD 615 – 625 PMT USD 605 - 615 PMT Since January 2020, prices have fallen down by USD 30 PMT (5%) in March 2020. www.machinerylubricationindia.com N- 70 South Korea Origin Base Oil CFR Bright Stock CFR India Prices India Prices USD 590 - 600 PMT USD 800 – 810 PMT USD 570 - 580 PMT USD 780 - 795 PMT USD 560 - 570 PMT USD 770 - 785 PMT Since January 2020, Since January 2020, prices prices have decreased have dipped down by by USD 30 PMT (5%) in USD 30 PMT (4%) in March 2020. March 2020.