India’s lube demand rose in June at its fastest pace this year, adding to signs of firmer economic growth in the country.Stronger lube consumption would absorb domestic blenders’ high base oils stocks faster.The firm lube demand also coincided with plant maintenance work in India that was scheduled to begin in June and extend to end-July.Firm demand and lower supply could in turn increase domestic blenders’ requirements when they seek to replenish inventories in preparation for a seasonal rise in lube consumption from the end of the third quarter of the year.Rising domestic base oils production capacity is set to cover more of those requirements in the coming years.Supplies from overseas markets were set to continue to cover most of those rising requirements until that capacity comes online.India’s lube consumption of 354,000 tonnes in June rose from 331,000 tonnes in May and by 11% from year-earlier levels, government data showed.Demand in recent years extended its rise in the month of July from June before slowing in the month of August.The strong rise in lube demand in June mirrored a recovery in India’s manufacturing purchasing managers’ index that month, following a dip in May.Manufacturing activity slowed in May partly because companies cut working hours in response to an intense heatwave.The hot weather continued to impact economic activity in June, when India’s automobile sales rose at their slowest pace in eight months.The heatwave triggered a drop in customer inquiries and postponed purchases, according to the Federation of Automobile Dealers Associations. .India’s May base oils supply exceeds demand.India’s May lube demand rises
India’s lube demand rose in June at its fastest pace this year, adding to signs of firmer economic growth in the country.Stronger lube consumption would absorb domestic blenders’ high base oils stocks faster.The firm lube demand also coincided with plant maintenance work in India that was scheduled to begin in June and extend to end-July.Firm demand and lower supply could in turn increase domestic blenders’ requirements when they seek to replenish inventories in preparation for a seasonal rise in lube consumption from the end of the third quarter of the year.Rising domestic base oils production capacity is set to cover more of those requirements in the coming years.Supplies from overseas markets were set to continue to cover most of those rising requirements until that capacity comes online.India’s lube consumption of 354,000 tonnes in June rose from 331,000 tonnes in May and by 11% from year-earlier levels, government data showed.Demand in recent years extended its rise in the month of July from June before slowing in the month of August.The strong rise in lube demand in June mirrored a recovery in India’s manufacturing purchasing managers’ index that month, following a dip in May.Manufacturing activity slowed in May partly because companies cut working hours in response to an intense heatwave.The hot weather continued to impact economic activity in June, when India’s automobile sales rose at their slowest pace in eight months.The heatwave triggered a drop in customer inquiries and postponed purchases, according to the Federation of Automobile Dealers Associations. .India’s May base oils supply exceeds demand.India’s May lube demand rises