Asia’s lube demand rose in April from year-earlier levels for the first time in three months, cushioning the impact of a seasonal slowdown in consumption from the previous month.The region’s lube demand usually falls sharply in the month of April after a seasonal surge in consumption in the month of March.The slowdown in consumption at the start of the second quarter of the year frequently triggers a rise in surplus base oils supplies, followed by downward pressure on prices.The prospect of such a scenario increased this year after a smaller-than-usual seasonal rise in lube consumption in March limited any base oils supply-tightness at the end of the first quarter.Firmer-than-expected lube demand in April instead curbed the prospect of such a scenario of rising surplus supplies.The region’s lube consumption of more than 745,000 tonnes in April rose by 8% from year-earlier levels, government and industry data showed.The volume excluded China.Demand still fell from more than 865,000 tonnes the previous month.But the size of the month-on-month contraction was smaller than the 230,000-tonne fall in consumption during the same two-month period last year.The smaller drop in consumption in April from March followed the smaller rise in demand in March from February.The trend could have reflected a preference by blenders and end-users to maintain lower stocks and to replenish inventories more frequently.Such a move would partially level out a seasonal surge and subsequent drop in consumption in the months of March and April.Lube consumption in southeast Asia rose by 6% and for a second month in April amid signs of improving demand in markets like Vietnam and the Philippines.Lube demand in northeast Asia rose by 10% in April from year-earlier levels and unusually exceeded consumption volumes in the month of March..Thailand’s April lube demand stays lower.Japan’s April base oils supply stays lower
Asia’s lube demand rose in April from year-earlier levels for the first time in three months, cushioning the impact of a seasonal slowdown in consumption from the previous month.The region’s lube demand usually falls sharply in the month of April after a seasonal surge in consumption in the month of March.The slowdown in consumption at the start of the second quarter of the year frequently triggers a rise in surplus base oils supplies, followed by downward pressure on prices.The prospect of such a scenario increased this year after a smaller-than-usual seasonal rise in lube consumption in March limited any base oils supply-tightness at the end of the first quarter.Firmer-than-expected lube demand in April instead curbed the prospect of such a scenario of rising surplus supplies.The region’s lube consumption of more than 745,000 tonnes in April rose by 8% from year-earlier levels, government and industry data showed.The volume excluded China.Demand still fell from more than 865,000 tonnes the previous month.But the size of the month-on-month contraction was smaller than the 230,000-tonne fall in consumption during the same two-month period last year.The smaller drop in consumption in April from March followed the smaller rise in demand in March from February.The trend could have reflected a preference by blenders and end-users to maintain lower stocks and to replenish inventories more frequently.Such a move would partially level out a seasonal surge and subsequent drop in consumption in the months of March and April.Lube consumption in southeast Asia rose by 6% and for a second month in April amid signs of improving demand in markets like Vietnam and the Philippines.Lube demand in northeast Asia rose by 10% in April from year-earlier levels and unusually exceeded consumption volumes in the month of March..Thailand’s April lube demand stays lower.Japan’s April base oils supply stays lower