MUMBAI – Demand for synthetic base stocks in India is growing, but the markets price consciousness means that most of the volume increases in coming years will be for API Group III base stocks, officials from Hindustan Petroleum Corp. Ltd. told an industry conference here last week.
India consumed 2.4 million tons of base stocks in 2014, Senior Market Manager for Technical Services Minaketan Panda told the ICIS India Base Oils & Lubricants Conference April 6. Only 6 percent of that volume, or approximately 140,000 tons, was synthetic, he added, and 70 to 80 percent of that was Group III. But different types of synthetics were experiencing the fastest growth rates in the market, he said. Group III demand in India is increasing at a compound annual rate of 8 percent, while polyalphaolefins are growing at a 10 percent clip and esters at a rate of 3 percent.