Thailand’s lube demand rose more strongly in May, adding to signs of higher-than-expected consumption throughout the Asia-Pacific region that month.Firmer demand would cushion the impact of a rise in Asia’s base oils supply in the month of May.Thailand’s Group I base oils exports also rose in May even with the rise in domestic lube demand.The pick-up in shipments to overseas markets suggested that premium-grade base oils were covering more of the country’s rising consumption.Such a trend could free up additional Group I base oils supplies for overseas markets even if the country’s domestic lube demand continues to rise.Any such pick-up in supplies would be welcome in a regional market that has struggled with tight Group I supply fundamentals so far this year.Asia’s firm Group I base oils prices in recent months reflected those tight fundamentals.Thailand’s lube consumption of 42,700 kilolitres (37,800 tonnes) in May rose from less than 33,000 kilolitres in April and by 14% from year-earlier levels, government data showed.Demand had flatlined or fallen in each of the previous three months.Demand improved in May because of a 9% rise in engine oils consumption, following a contraction in each of the previous three months.Thailand’s base oils sales also rose in May for the third time in four months from year-earlier levels. But they fell from April.The slowdown cut base oils sales as a share of the country's lube demand to 25% of the total, down from at least 30% in each of the previous three months.Lower base oils sales freed up more volumes for export.Shipments to overseas markets duly rose to more than 20,000 kilolitres in May.Exports rose from year-earlier levels for the first time this year to the highest in eight months.The drop in overseas shipments in the intervening months compounded the tight supply of Group I base oils in the Asia-Pacific region.The May exports included a surge in shipments to Singapore to a twenty-two-month high of more than 15,500 kilolitres.The rise in shipments added to signs of tight supply and firm demand for Group I base oils in the island-state..Japan’s May base oils supply lags demand.Asia’s April lube demand rises.Thailand’s May base oils supply rises
