· Asia-Pacific lube demand to stay lower in April-May vs March levels.· Lube demand showed signs of typical strong growth throughout Asia-Pacific region in March.· Demand showed signs of reverting closer to pre-2020 seasonal trends.· Rising domestic demand throughout Asia in March outpaced higher supply in several key markets.· Trend likely to reverse in Q2 – with demand falling from end-Q1 levels.· Slower demand likely to cushion impact of regional plant maintenance work.· More muted demand and expectations that prices likely to remain in narrow range add to attraction of maintaining lower stocks.· China’s April base oils demand shows signs of gradual rather than rapid improvement.· Trend slows consumption of existing supplies and curbs requirements for overseas shipments.· Limited arbitrage opportunities to China add to signs of more muted domestic demand growth.· South Korea’s March base oils demand rises to thirteen-month high, contrasting with more muted rise in domestic production and curbing volumes available for export.· Thailand’s March lube demand rises to highest in a year, leaving base oils producers with lower stocks.· Thailand’s demand typically falls in April before improving in May.· India’s base oils demand likely to stay muted as country takes delivery of more arbitrage supplies from US over coming weeks.· India’s April base oils imports already show signs of getting boost from arrival of arbitrage supplies from US/Europe.· Volatile crude prices and signs of healthy availability of supply add to attraction for Indian buyers to maintain lower stocks..Global base oils - week of May 8: Demand outlook
