Asia’s lube demand is likely to hold in a narrower range over the coming months after a slowdown in demand this month that followed a seasonal surge in consumption in March.The typical volatility of demand at the end of the first quarter and start of the second quarter each year complicates blenders’ procurement plans and refiners’ production schedule during that time.The sharp adjustment in demand often triggers unusually tight regional supply at the end of the first quarter of the year, followed by a rebound in surplus volumes during the second quarter.Signs of a reversion of the region’s lube demand to more typical levels from the middle of the second quarter should in turn facilitate blenders’ and refiners’ procurement and production plans.Lube demand is likely to hold above 2.25 million tonnes during the second quarter of the year, according to the Baseoilnews short-term outlook.The volume would be down from more than 2.42 million tonnes during the first three months of the year.The drop in demand mostly reflects a fall in consumption in April from higher-than-usual levels in the month of March.Demand is then likely to hold in a narrower range over the coming months before peaking in September.Asia’s base oils supply surplus tightened during the second quarter of last year, partly because of the shutdown of a major base oils unit for scheduled maintenance work for most of that period.A lighter round of scheduled maintenance work during the second quarter of this year raises the prospect of a pick-up in supply compared with year-earlier levels.Higher supply and steadier demand raises the prospect of a rise in surplus volumes.Such a scenario would require the removal of the surplus either through lower production or by moving the supplies to markets in other regions..India’s March lube demand mixed.Asia’s February lube demand falls
Asia’s lube demand is likely to hold in a narrower range over the coming months after a slowdown in demand this month that followed a seasonal surge in consumption in March.The typical volatility of demand at the end of the first quarter and start of the second quarter each year complicates blenders’ procurement plans and refiners’ production schedule during that time.The sharp adjustment in demand often triggers unusually tight regional supply at the end of the first quarter of the year, followed by a rebound in surplus volumes during the second quarter.Signs of a reversion of the region’s lube demand to more typical levels from the middle of the second quarter should in turn facilitate blenders’ and refiners’ procurement and production plans.Lube demand is likely to hold above 2.25 million tonnes during the second quarter of the year, according to the Baseoilnews short-term outlook.The volume would be down from more than 2.42 million tonnes during the first three months of the year.The drop in demand mostly reflects a fall in consumption in April from higher-than-usual levels in the month of March.Demand is then likely to hold in a narrower range over the coming months before peaking in September.Asia’s base oils supply surplus tightened during the second quarter of last year, partly because of the shutdown of a major base oils unit for scheduled maintenance work for most of that period.A lighter round of scheduled maintenance work during the second quarter of this year raises the prospect of a pick-up in supply compared with year-earlier levels.Higher supply and steadier demand raises the prospect of a rise in surplus volumes.Such a scenario would require the removal of the surplus either through lower production or by moving the supplies to markets in other regions..India’s March lube demand mixed.Asia’s February lube demand falls
