Asia’s lube demand unexpectedly rose to a six-month high in December at a time of year when it typically falls.Higher demand contrasted with a small dip in the region’s base oils supply, cutting the size of its supply surplus at the end of the year.The smaller surplus cut pressure on Asia’s refiners to line up shipments to move to more distant markets or to adjust prices to make such shipments more feasible.Asia's total lube demand rose to more than 800,000 tonnes in December, government and industry data showed.The volume, which excludes China, rose from less than 785,000 tonnes in November and by 10% from year-earlier levels.The rise in demand contrasted with a typical seasonal slowdown in consumption at the end of the year.The increase mostly reflected a jump in consumption in southeast Asia and in India.Asia’s heavy-grade base oils prices especially remained unusually firm during the final months of last year, at a time of year when they usually face more downward pressure from rising surplus supply.The price strength extended into this year, adding to signs of tighter-than-usual fundamentals for the time of year.The rise in demand contrasted with a sharp fall in Asia’s base oils exports in December to a three-month low.The drop in exports outpaced the fall in Asia’s base oils output to around 940,000 tonnes in December, from more than 960,000 tonnes the previous month.The sharper fall in exports could reflect moves by some refiners to build stocks ahead of plant maintenance work early this year.Lower exports also coincided with regional blenders’ moves to trim inventories before year-end.Stronger demand raised the prospect of those inventories starting the new year at lower levels than usual.Stronger consumption also cut sharply the surplus of Asia's supply over demand to less than 135,000 tonnes in December.The volume fell from more than 175,000 tonnes in November and in December 2023.The smaller surplus coincided with lower-than-usual base oils exports from US and Europe to markets like India and Middle East late last year and early this year..Thailand’s December lube demand rises.Japan’s December base oils output falls.S Korea’s Dec base oils output falls
Asia’s lube demand unexpectedly rose to a six-month high in December at a time of year when it typically falls.Higher demand contrasted with a small dip in the region’s base oils supply, cutting the size of its supply surplus at the end of the year.The smaller surplus cut pressure on Asia’s refiners to line up shipments to move to more distant markets or to adjust prices to make such shipments more feasible.Asia's total lube demand rose to more than 800,000 tonnes in December, government and industry data showed.The volume, which excludes China, rose from less than 785,000 tonnes in November and by 10% from year-earlier levels.The rise in demand contrasted with a typical seasonal slowdown in consumption at the end of the year.The increase mostly reflected a jump in consumption in southeast Asia and in India.Asia’s heavy-grade base oils prices especially remained unusually firm during the final months of last year, at a time of year when they usually face more downward pressure from rising surplus supply.The price strength extended into this year, adding to signs of tighter-than-usual fundamentals for the time of year.The rise in demand contrasted with a sharp fall in Asia’s base oils exports in December to a three-month low.The drop in exports outpaced the fall in Asia’s base oils output to around 940,000 tonnes in December, from more than 960,000 tonnes the previous month.The sharper fall in exports could reflect moves by some refiners to build stocks ahead of plant maintenance work early this year.Lower exports also coincided with regional blenders’ moves to trim inventories before year-end.Stronger demand raised the prospect of those inventories starting the new year at lower levels than usual.Stronger consumption also cut sharply the surplus of Asia's supply over demand to less than 135,000 tonnes in December.The volume fell from more than 175,000 tonnes in November and in December 2023.The smaller surplus coincided with lower-than-usual base oils exports from US and Europe to markets like India and Middle East late last year and early this year..Thailand’s December lube demand rises.Japan’s December base oils output falls.S Korea’s Dec base oils output falls
