· US consumer demand holding firm.· Base oils demand holds firm in US.· US hurricane season expected to be more active than usual.· Higher prospect of weather-related supply disruptions add to US buyers’ incentive to secure additional supplies as buffer.· Brazil’s April lube demand steadies, holding firm.· Latin America buyers likely to continue to target lower-priced supplies from Asia-Pacific.· Consumer confidence/services sector in some European economies benefit from post-Omicron pent-up demand bounce, upcoming tourism season.· Manufacturing output in Europe grows more slowly, facing pressure from supply-chain delays and rising costs.· Europe lube demand mostly weaker.· Italy’s April auto lube demand falls for first time this year; industrial lube demand extends drop..· Spain’s March lube demand falls for second month.· Austria’s March lube demand falls.· France’s lube demand rises in March for first time this year.· Base oils demand steady in Europe, even with mixed lube demand.· Mixed lube demand, prospect of seasonal slowdown from start of Q3 boosts attraction for European buyers to hold back.· Overseas buyers that procure from Europe incentivized to source supplies from Asia-Pacific.· China’s economy set to get boost from relaxation of lockdowns in key population/production centres.· China’s auto sales gather pace steadily throughout May.· China's auto sales up more than 30pc in first three weeks of May vs same period in April; contraction slows vs year-earlier levels.· Rebound in China’s lube demand likely to be less strong than in Q2-Q3 2020 amid pressure from higher prices, closed arbitrage to China, supply-chain bottlenecks, concern about further lockdowns.· Base oils demand remains weaker in Asia amid resistance to high prices – even though they are lower than prices in other regions.· Weaker demand coincides with lower retail diesel prices in India.· Base oils demand in China could get support from stock-replenishment. Domestic prices would need to rise sharply to attract supplies.· Typical seasonal slowdown in demand in Asia in Q3 likely to be distorted by firmer Chinese demand.· Any easing of logistical bottlenecks in China could facilitate arbitrage shipments to other regions by cutting pressure on freight rates / boosting freight availability..Global base oils – week May 23: Demand.Base Oil News stories and analysis also available on ICIS platform
