Asia’s lube demand fell in April for the first time in five months amid weaker consumption in northeast Asia and India and mixed demand in southeast Asia.The drop in demand coincided with the US’ imposition of tariffs on global imports and forecasts of lower-than-expected economic growth in Asia as a result of the move.The drop in demand magnified the size of a seasonal dip in lube consumption at the start of the second quarter of the year.It also helped to cushion the impact of lower-than-usual base oils supply in Asia because of a heavy round of plant-maintenance work.Asia’s unusually tight supply-demand balance in the first three months of the year subsequently began to ease at the start of the second quarter.The region’s total lube consumption of more than 770,000 tonnes in April fell by 8% from year-earlier levels, government and industry data showed..The volume excluded China.The contraction increased the size of the seasonal drop in consumption from more than 900,000 tonnes in March, the month when Asia's demand typically peaks.The size of the fall in consumption in April from March left blenders’ supplies lasting longer, curbing their urgency to seek replenishment volumes.The size of the fall in consumption also more than outweighed the impact of a drop in supply that began early this year and extended into the second quarter of the year because of plant-maintenance work.The surplus of supply over demand duly rebounded in April to the highest this year.The larger surplus boosted blenders’ leverage to maintain lower stocks. It instead put pressure on refiners to start lining up alternative markets outside the Asia-Pacific region to place the extra volumes.Asia’s Group II base oils prices showed signs of reflecting the improving supply-balance.The region’s Group II base oils price-premium to gasoil prices held in a narrow range from the start of the second quarter of the year, after rising steadily during the first three months of the year.Asia’s Group II heavy-grade price discount to Europe prices also deepened during the second quarter to the widest level in seven months.The wider discount boosted the feasibility of moving arbitrage shipments from Asia to that market..Thailand’s April base oils supply exceeds demand.Japan’s April base oil/lube demand falls.S Korea’s April base oils output rises.India’s April lube demand falls
