Pakistan’s lube demand steadied in March on the back of a rebound in industrial oils consumption, adding to signs of a gradual recovery in the country’s economic growth.Steady-to-firm demand coincided with an ongoing slowdown in Pakistan’s base oils output.The trend raised the prospect of increasing the country’s requirements for base oils supplies from overseas markets, especially of heavy grades.Pakistan’s lube demand of 12,100 tonnes in March was similar to consumption of 12,150 tonnes during the same month last year, OCAC data showed.Lube consumption steadied after falling more than 8% in each of the previous two months.Industrial oils consumption rose by 9% in March, contrasting with a 5% fall in transport lubricants demand.The recovery in industrial oils consumption coincided with a rise in Pakistan’s large-scale manufacturing production in March for a fourth straight month.The country’s automobile sales rose in April for a second month, adding to signs of steadier economic growth and the prospect of rising lubricants consumption.Pakistan’s base oils output recovered in April to a one-year high of more than 12,700 tonnes. It still fell by 6% in April and for the eighth time in nine months from year-earlier levels.Steadier demand and lower domestic base oils output raised the prospect of increasing the country's requirements for additional base oils supplies from overseas markets.South Korea and Singapore are the key sources for almost all the country’s overseas base oils supplies.More than half of Pakistan's base oils imports consist of mostly Group II heavy grades and some Group I heavy-neutrals base oils.Pakistan’s base oils imports of more than 59,000 tonnes in the first quarter of the year rose by 27% from year-earlier levels.Any additional rise in the country’s base oils requirements would increase further its demand for heavy-grade supplies from South Korea and Singapore..S Korea’s April base oils exports fall.Singapore’s April base oils exports rise.Pakistan’s Feb base oils output falls.Base Oil News stories and analysis also available on ICIS platform
