Asia’s lube demand rose in January for the eighth time in nine months, curbing a build-up of surplus base oils supplies in the region.Lube demand rose everywhere from South Korea and Japan to key markets in southeast Asia.The strong demand countered a slowdown in consumption in India and highlighted the benefit of supplying a region with a diverse range of markets.The region’s rising lube consumption also absorbed more of Asia’s base oils supplies.The trend countered the need for the region’s refiners to move surplus base oils shipments to more distant markets.It also cushioned the impact of signs of more muted demand from China for overseas base oils supplies.Asia’s firm base oils prices relative to other markets like Europe and the Americas reflected the firm supply-demand fundamentals, ICIS data showed.The region’s total lube consumption of around 780,000t in January rose by 5pc from year-earlier levels, government and industry data showed.The volume excluded China.Consumption rose from an eight-month low of less than 740,000t in December, when demand faced a typical seasonal slowdown.The region’s base oils output also fell in December.The drop in supply cushioned the impact of lower demand and slowed the build-up of surplus supplies at the end of last year.Stronger demand at the start of this year raised the prospect of extending that trend..Asia’s January base oils exports rise.Thailand’s January lube demand rises.Japan’s Jan base oil/lube demand mixed
