· Asia’s base oils demand likely to get support from signs of firm underlying lube demand, expectations of higher prices, smaller-than-expected supply surplus.· Asia’s lube demand shows signs of holding firmer than expected throughout Q2 2023.· China’s lubricants consumption likely to stay weaker than usual.· Weak lube demand deters Chinese blenders from replenishing feedstock supplies.· Trend leaves shorter time-period for blenders to replenish stocks ahead of seasonal pick-up in demand in September and October.· China’s weak lube demand contrasts with signs of firmer consumption in other key markets in Asia-Pacific..· Lube demand in southeast Asia stays mixed.· Fall in Thailand’s lube demand gathers pace in June as slowdown extends to passenger-car engine oils..· Sliding demand contrasts with signs of firmer consumption in other markets in southeast Asia.· Mixed demand trends in southeast Asia provide refiners with alternative outlets, unlike more muted consumption throughout China.· Thailand’s Group I base oils demand from domestic producers extends steep slide in June..· Slump in base oils demand outpaces fall in Thailand’s total lube demand, leaves country’s refiners increasingly reliant on exports to maintain supply-demand balance.· Thailand's base oils exports in June account for more than 40pc of country’s base oils demand for third month.· Exports accounted for more than 40pc share of demand just two times in all of 2022. .· Overseas demand for Thailand’s Group I base oils likely to hold firm amid likely drop in supplies from Japan and closed arbitrage from Europe.· Expectations of higher prices likely to add to buying interest..· Pakistan’s sharp slide in lube demand in 1H 2023 cuts country’s base oils requirements – highlighting mixed demand outlook throughout region.· Country’s lube demand shows little sign of recovery any time soon..· Singapore’s exports to China and India slump over last four weeks..· Drop in shipments coincides with seasonal slowdown in demand in both markets..· India’s July base oils imports show signs of staying high on back of wave of arbitrage shipments from US especially.· India’s imports stay high even during slowdown in domestic lube demand during monsoon season.· Steady flows highlight country’s firm underlying demand when prices deemed competitive.· Demand could get further support as buyers seek to lock in supplies at current price levels, and for shipments that would reach India in 2H September or beginning of Q4 2023.· India’s retail diesel premium to prices for imported supplies of very-light grade base oils hold at highest since early 2022.· Prospect of narrowing diesel premium to light grades boosts attraction of locking in supplies at current prices..Global base oils - week of Aug 14: Price outlook - margins
· Asia’s base oils demand likely to get support from signs of firm underlying lube demand, expectations of higher prices, smaller-than-expected supply surplus.· Asia’s lube demand shows signs of holding firmer than expected throughout Q2 2023.· China’s lubricants consumption likely to stay weaker than usual.· Weak lube demand deters Chinese blenders from replenishing feedstock supplies.· Trend leaves shorter time-period for blenders to replenish stocks ahead of seasonal pick-up in demand in September and October.· China’s weak lube demand contrasts with signs of firmer consumption in other key markets in Asia-Pacific..· Lube demand in southeast Asia stays mixed.· Fall in Thailand’s lube demand gathers pace in June as slowdown extends to passenger-car engine oils..· Sliding demand contrasts with signs of firmer consumption in other markets in southeast Asia.· Mixed demand trends in southeast Asia provide refiners with alternative outlets, unlike more muted consumption throughout China.· Thailand’s Group I base oils demand from domestic producers extends steep slide in June..· Slump in base oils demand outpaces fall in Thailand’s total lube demand, leaves country’s refiners increasingly reliant on exports to maintain supply-demand balance.· Thailand's base oils exports in June account for more than 40pc of country’s base oils demand for third month.· Exports accounted for more than 40pc share of demand just two times in all of 2022. .· Overseas demand for Thailand’s Group I base oils likely to hold firm amid likely drop in supplies from Japan and closed arbitrage from Europe.· Expectations of higher prices likely to add to buying interest..· Pakistan’s sharp slide in lube demand in 1H 2023 cuts country’s base oils requirements – highlighting mixed demand outlook throughout region.· Country’s lube demand shows little sign of recovery any time soon..· Singapore’s exports to China and India slump over last four weeks..· Drop in shipments coincides with seasonal slowdown in demand in both markets..· India’s July base oils imports show signs of staying high on back of wave of arbitrage shipments from US especially.· India’s imports stay high even during slowdown in domestic lube demand during monsoon season.· Steady flows highlight country’s firm underlying demand when prices deemed competitive.· Demand could get further support as buyers seek to lock in supplies at current price levels, and for shipments that would reach India in 2H September or beginning of Q4 2023.· India’s retail diesel premium to prices for imported supplies of very-light grade base oils hold at highest since early 2022.· Prospect of narrowing diesel premium to light grades boosts attraction of locking in supplies at current prices..Global base oils - week of Aug 14: Price outlook - margins
