Asia’s lube demand fell to a six-month low in August amid a dip in consumption in key markets like South Korea, Japan and Thailand.The region’s surplus base oils supply still tightened amid lower production and a pick-up in China’s net imports.The surplus faced the prospect of tightening further in September because of the start of additional plant maintenance work in the region, combined with a seasonal pick-up in lube consumption.Asia’s lube consumption of around 750,000 tonnes in August fell by 4% and for a second month from year-earlier levels, government and industry data showed.The volume excluded China.Rising lube consumption in India cushioned the impact of a 10% drop in demand in southeast Asia and a 15% contraction in northeast Asia.Lower lube consumption contrasted with a rise in Asia’s base oils exports in August to the second-highest level in seventeen months.Base oils exports to southeast Asia were the second-highest in thirteen months in August. The highest volume during that time was in July, when shipments to the region rose to a multi-year high.Asia’s base oils exports rose even as the region’s base oils supply fell in August.Higher exports, lower supply and lower lube consumption pointed to a drop in regional refiners’ stocks and a rise in regional blenders’ inventories.Asia’s base oils supply likely dipped further in September, when maintenance work began on a key plant in northeast Asia.A drop in supply and refiners’ already-lower stocks would have coincided with a seasonal pick-up in lube consumption in September.Blenders’ higher inventories, and any extension of the year-on-year slowdown in lube consumption, would cushion the impact of the tighter supply.Even so, Asia’s base oils prices remained unusually firm relative to gasoil values in September, pointing to tight supply-demand fundamentals..Thailand’s August lube demand falls.India’s Aug lube demand holds firm.Japan’s August base oils output falls
Asia’s lube demand fell to a six-month low in August amid a dip in consumption in key markets like South Korea, Japan and Thailand.The region’s surplus base oils supply still tightened amid lower production and a pick-up in China’s net imports.The surplus faced the prospect of tightening further in September because of the start of additional plant maintenance work in the region, combined with a seasonal pick-up in lube consumption.Asia’s lube consumption of around 750,000 tonnes in August fell by 4% and for a second month from year-earlier levels, government and industry data showed.The volume excluded China.Rising lube consumption in India cushioned the impact of a 10% drop in demand in southeast Asia and a 15% contraction in northeast Asia.Lower lube consumption contrasted with a rise in Asia’s base oils exports in August to the second-highest level in seventeen months.Base oils exports to southeast Asia were the second-highest in thirteen months in August. The highest volume during that time was in July, when shipments to the region rose to a multi-year high.Asia’s base oils exports rose even as the region’s base oils supply fell in August.Higher exports, lower supply and lower lube consumption pointed to a drop in regional refiners’ stocks and a rise in regional blenders’ inventories.Asia’s base oils supply likely dipped further in September, when maintenance work began on a key plant in northeast Asia.A drop in supply and refiners’ already-lower stocks would have coincided with a seasonal pick-up in lube consumption in September.Blenders’ higher inventories, and any extension of the year-on-year slowdown in lube consumption, would cushion the impact of the tighter supply.Even so, Asia’s base oils prices remained unusually firm relative to gasoil values in September, pointing to tight supply-demand fundamentals..Thailand’s August lube demand falls.India’s Aug lube demand holds firm.Japan’s August base oils output falls
