Thailand’s lube consumption rose in February for a third month even ahead of a typical further pick-up in demand in the month of March.Firm demand raised the prospect of leaving blenders with depleted stocks at the start of the second quarter of the year.Any moves to replenish those stocks could now been slower than expected amid concern about a sharp slowdown in Thailand’s economic growth.Any extension of those moves throughout Asia could magnify a slowdown in base oils demand at a time of year when consumption normally holds firm.Thailand’s lube consumption of 47,100 kilolitres (42,000 tonnes) in February rose by 18% from year-earlier levels, government data showed.Consumption got a boost from surging engine oils demand that rose at its fastest pace in almost four years.Shell Company of Thailand was the country’s largest lube supplier in February, with PTT Oil and Retail the second largest.Rising demand coincided with expectations of steady economic growth in Thailand in 2025.The country’s central bank forecast growth of around 2.5% this year, similar to last year’s growth rate.The forecast was made before the US imposed steep tariffs on imports from Thailand from first-half April.The move already triggered a sharp drop in some economic growth projections for Thailand.Expectations of slower growth could incentivize domestic blenders to slow stock-replenishment plans and to limit their base oils and lubricants inventories.Any such moves could free up more of Thailand’s Group I base oils supplies for overseas markets.These shipments already held firm in recent months, including in February, supporting a surge in shipments to Singapore especially.The shipments helped to cushion the impact of increasingly tight Group I supply in the Asia-Pacific market.The prospect of a more widespread slowdown in Asia’s economic growth could instead mitigate that Group I supply tightness.Any such slowdown in domestic and overseas requirements could also cushion the impact of upcoming Group I plant maintenance work in Thailand over the coming months..Japan’s February base oils output falls.Thailand’s Feb base oils output rises.China’s February base oils demand falls
