Asia’s lube demand fell in March for the first time in four months from year-earlier levels as a slump in consumption in southeast Asia outweighed still-firm demand in India.Lube demand fell even before the US’ implementation of tariffs in early-April and subsequent forecasts of a slowdown in Asia’s economic growth.The dynamic raised the prospect of further pressure on lube demand growth over the coming months.Asia’s lube consumption of more than 860,000 tonnes in March fell by less than 1% from year-earlier levels, government and industry data showed.The volumes excluded China..A seasonal rise in demand still lifted consumption by 15% from less than 760,000 tonnes in February.The pace of the increase in March from the previous month was the smallest in four years.Demand would have fallen even more sharply from year-earlier levels but for a 10% rise in India’s lube consumption in March.Demand fell almost everywhere else.Lube consumption in southeast Asia fell by more than 12% in March and at its fastest pace in ten months.The contraction reflected a drop in demand in key markets like Thailand, Indonesia and Philippines.Demand in northeast Asia fell amid sliding consumption in Japan.Weaker demand eased but failed to reverse for now Asia’s tight base oils supply early this year.The region's supply of more than 890,000 tonnes in March rose from the previous month as higher output in markets like India and Japan countered a dip in production in South Korea.Supply of less than 2.65 million tonnes in the first quarter of the year was still the lowest since first-half 2021.Tight supply and a seasonal rise in demand in the month of March cut surplus volumes to a three-year low.Ongoing plant maintenance in the second quarter of the year raised the prospect of net supply staying tight at least in April and May even with more muted demand.Asia’s base oils prices reflected those tight supply-demand fundamentals.The region’s base oils cargo prices held unusually firm relative to gasoil values in the first quarter of the year, especially for heavy-grade supplies.They then extended their rise so far in the second quarter..Thailand’s March lube demand falls.Japan’s March base oils demand falls.S Korea’s March base oils output falls
