India's port congestion signals drop in oil imports
Storage saturation at Indian ports has delayed 300,000 metric tons of cargo, forcing a pause in new vegetable oil purchases.
Approximately 300,000 metric tons of edible oil are currently anchored at Indian ports. Vessels at Kandla face unloading delays of up to 10 days. Shore tanks have reached full capacity. This physical bottleneck threatens to halt new import orders.
India’s August imports ranged between 1.5 million and 1.9 million metric tons. This volume marks the highest level in 20 months. The increase represents a 29% year-over-year rise. Traders report that storage constraints now dictate purchasing behavior.
Port storage limits constrain supply
At least nine vessels wait at the Kandla port. Haldia also experiences congestion, though to a lesser degree. Refiners booked large volumes in August and September. They anticipated strong festival demand and cheaper prompt shipments. Actual consumption has lagged behind these projections.
Vegetable oil stocks at Indian ports hit 1.1 million metric tons in July. This level was the highest recorded since October 2023. The Solvents Extractors’ Association of India released these figures. Importers now struggle to find space for new arrivals.
Refiners shift to inventory clearance
Crude soybean oil imports reached 858,706 metric tons in August. This figure surpassed crude palm oil imports of 793,636 metric tons. Soybean oil was purchased on discount. However, poor off-take has left importers with excess stock. Analysts predict reduced buying of both oils in October.
Refiners must work through existing inventories first. They aim to clear the backlog at ports. Four tankers remain stuck due to limited discharge windows. Importers face potential default risks if delays persist. The market awaits the release of August data by September 15.
Market prices show slight increase
Platts assessed crude palm oil at $1,285 per metric ton. This price reflects a 0.6% daily increase. The assessment was recorded on September 7. Hellenic Shipping News reports that physical logistics now outweigh price signals. Traders monitor vessel waiting times closely.
