Asia’s lube demand rose in January for a second month, limiting the size of a typical build-up of surplus base oils supply in the region at the start of the year.Firm demand coincided with lower-than-usual base oils exports from regional suppliers in January, also for a second month.Firm demand and lower supply duly complicated blenders’ moves to replenish stocks ahead of a seasonal pick-up in consumption later in the first quarter of the year.Asia's firm base oils prices so far this year reflected those tighter supply-demand fundamentals.The region’s total consumption held above 800,000 tonnes in January for a second month and rose by more than 5% from year-earlier levels, government and industry data showed.The volume excluded China.Demand got a boost as firm consumption in markets like India, Pakistan and Thailand countered more muted demand in northeast Asia.Strong demand contrasted with lower base oils output in the region at the start of the year.Stock-building ahead of plant maintenance work also trimmed volumes available for export, compounding the impact of lower base oils output.The tighter supply-demand dynamics cut the size of a typical rise in surplus base oils volumes at the start of the year.The smaller surplus had multiple repercussions.It complicated regional blenders’ moves to replenish stocks ahead of a seasonal pick-up in consumption from the end of the first quarter of the year.It curbed the flow of arbitrage shipments to markets like Middle East and Latin America.It also curbed the opportunity for buyers to secure additional supplies at discounted price levels.Asia’s base oils prices instead stayed firmer than usual so far this year.The premium of Asia’s Group II heavy-grade base oils price over Singapore gasoil stayed unusually high during the first two months of this year. It then extended its rise in March to the highest since late-2021..S Korea’s Jan base oils output improves.S Korea’s January base oils exports fall.Thailand’s January lube demand rises.Japan’s January base oils supply falls
Asia’s lube demand rose in January for a second month, limiting the size of a typical build-up of surplus base oils supply in the region at the start of the year.Firm demand coincided with lower-than-usual base oils exports from regional suppliers in January, also for a second month.Firm demand and lower supply duly complicated blenders’ moves to replenish stocks ahead of a seasonal pick-up in consumption later in the first quarter of the year.Asia's firm base oils prices so far this year reflected those tighter supply-demand fundamentals.The region’s total consumption held above 800,000 tonnes in January for a second month and rose by more than 5% from year-earlier levels, government and industry data showed.The volume excluded China.Demand got a boost as firm consumption in markets like India, Pakistan and Thailand countered more muted demand in northeast Asia.Strong demand contrasted with lower base oils output in the region at the start of the year.Stock-building ahead of plant maintenance work also trimmed volumes available for export, compounding the impact of lower base oils output.The tighter supply-demand dynamics cut the size of a typical rise in surplus base oils volumes at the start of the year.The smaller surplus had multiple repercussions.It complicated regional blenders’ moves to replenish stocks ahead of a seasonal pick-up in consumption from the end of the first quarter of the year.It curbed the flow of arbitrage shipments to markets like Middle East and Latin America.It also curbed the opportunity for buyers to secure additional supplies at discounted price levels.Asia’s base oils prices instead stayed firmer than usual so far this year.The premium of Asia’s Group II heavy-grade base oils price over Singapore gasoil stayed unusually high during the first two months of this year. It then extended its rise in March to the highest since late-2021..S Korea’s Jan base oils output improves.S Korea’s January base oils exports fall.Thailand’s January lube demand rises.Japan’s January base oils supply falls
