India’s lube consumption rose in May for a second month as firm economic growth countered the impact of the country’s general election on consumer demand.The pick-up in lube demand so far in the second quarter of the year contrasted with a fall in consumption every month during the first three months of the year.Demand still likely lagged the country’s base oils supply in May, triggering a further rise in domestic blenders’ inventories.Higher stocks, lower regional base oils prices and the prospect of a seasonal slowdown in domestic demand during the monsoon season boosted the incentive for blenders to trim those inventories over the coming weeks.More muted base oils demand would further complicate Asia-Pacific refiners’ options for removing surplus base oils supplies from the region.India’s lube consumption of 331,000 tonnes in May rose from less than 300,000 tonnes in April and was up 2% from year-earlier levels, government data showed.Lube demand rose even as India’s passenger car sales fell in May for the second time in three months.The country’s general election, that extended through the month of May, was one factor that prompted consumers to delay purchasing decisions, according to the Federation of Automobile Dealers Associations.Lube demand instead got support from more medium-to-long-term factors such as healthy economic growth.Growth in the country’s eight core industrial sectors rose in April from year-earlier levels at a faster pace than the previous month..India’s April supply exceeds demand
India’s lube consumption rose in May for a second month as firm economic growth countered the impact of the country’s general election on consumer demand.The pick-up in lube demand so far in the second quarter of the year contrasted with a fall in consumption every month during the first three months of the year.Demand still likely lagged the country’s base oils supply in May, triggering a further rise in domestic blenders’ inventories.Higher stocks, lower regional base oils prices and the prospect of a seasonal slowdown in domestic demand during the monsoon season boosted the incentive for blenders to trim those inventories over the coming weeks.More muted base oils demand would further complicate Asia-Pacific refiners’ options for removing surplus base oils supplies from the region.India’s lube consumption of 331,000 tonnes in May rose from less than 300,000 tonnes in April and was up 2% from year-earlier levels, government data showed.Lube demand rose even as India’s passenger car sales fell in May for the second time in three months.The country’s general election, that extended through the month of May, was one factor that prompted consumers to delay purchasing decisions, according to the Federation of Automobile Dealers Associations.Lube demand instead got support from more medium-to-long-term factors such as healthy economic growth.Growth in the country’s eight core industrial sectors rose in April from year-earlier levels at a faster pace than the previous month..India’s April supply exceeds demand