Asia’s lube demand is likely to edge up in the third quarter of the year from the previous three months amid a seasonal pick-up in consumption at the end of the quarter.Monthly demand is also likely to hold in a narrower range, especially compared with the second quarter of the year.Lube consumption likely fell sharply in April from the previous month, when demand got a typical seasonal boost.Demand then likely recovered closer to more typical levels in May and is likely to hold in a narrower range over the coming months.Total lube consumption is likely to rise to more than 2.30 million tonnes in the third quarter of the year, according to the Baseoilnews short-term outlook.The volume would be up from more than 2.20 million tonnes during the second quarter.Those consumption levels would be down from more than 2.36 million tonnes in the first three months of the year.The volumes exclude China.Asia’s base oils supply typically far exceeds lower demand in the second quarter of the year, triggering a large supply-build.A build-up of surplus volumes could be smaller this year because of plant maintenance work in South Korea and a subsequent sharp drop in the country’s base oils exports in April.Base oils exports from other markets like Taiwan and Japan were also lower than usual in April, with the trend likely extending through May.The prospect of steady lube demand and signs of sufficient supply were likely to continue to incentivize blenders to maintain lower stocks and to procure smaller volumes more regularly over the coming months.Even so, a smaller rise in surplus supplies in the second quarter of the year would curb pressure on regional refiners to make sharp price adjustments to clear shipments in more distant markets..Asia’s March lube demand mixed.S Korea’s April base oils exports fall.Taiwan’s April base oils exports slip
