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
