Thailand’s lube demand fell in December for a fourth month amid sliding consumption of engine and industrial oils.Rising demand for passenger-car motor oils (PCMO) had helped to cushion the slowdown in total consumption in recent months. That support waned in December as PCMO demand fell.The drop in lube demand mirrored a fall in Thailand’s industrial production and exports. The country’s private consumption faced pressure from elevated living costs.Those costs rose further after the country’s central bank raised interest rates in January to their highest since 2019.But the economy was expected to get a boost from an even faster recovery in the tourism sector after China ended its zero-Covid policy late last year. The move is likely to trigger a rebound in visitors from the country to Thailand.A reviving tourism sector is in turn likely to support PCMO consumption especially.The trend mirrored a similar pattern in other markets like Japan.Thailand’s lube consumption of 43,480 kilolitres (38,520t) in December fell by 13pc from year-earlier levels, government data showed. The size of the contraction was the largest in 17 months..The slowdown cut Thailand’s total lube consumption to 620,640kl in 2022.The volume still rose by 2pc from 610,240kl in 2021.But the increase in consumption slowed from a 6pc growth rate in the first eight months of the year.Lube demand slowed during the final months of the year mostly because of the sharp slowdown in industrial activity.Industrial production fell in December for a third month and at its fastest pace since the beginning of 2020.Consumption of heavy-duty engine oils (HDEO) fell by 9pc in December and non-automobile lubricants by 25pc.Thailand’s private consumption also slowed in December. Automobile sales fell for a second month and at their fastest pace in a year.PCMO consumption fell by 6pc in December, after rising in October and November.The outlook was more promising, with business sentiment rising in January to a seven-month high.An ongoing rebound in tourist arrivals supported that confidence. Tourist arrivals in December rose to their highest since January 2020.Tourists from China accounted for little more than 2pc of the December total. That share is likely to surge over the coming months..Japan’s Dec lube demand mixed
Thailand’s lube demand fell in December for a fourth month amid sliding consumption of engine and industrial oils.Rising demand for passenger-car motor oils (PCMO) had helped to cushion the slowdown in total consumption in recent months. That support waned in December as PCMO demand fell.The drop in lube demand mirrored a fall in Thailand’s industrial production and exports. The country’s private consumption faced pressure from elevated living costs.Those costs rose further after the country’s central bank raised interest rates in January to their highest since 2019.But the economy was expected to get a boost from an even faster recovery in the tourism sector after China ended its zero-Covid policy late last year. The move is likely to trigger a rebound in visitors from the country to Thailand.A reviving tourism sector is in turn likely to support PCMO consumption especially.The trend mirrored a similar pattern in other markets like Japan.Thailand’s lube consumption of 43,480 kilolitres (38,520t) in December fell by 13pc from year-earlier levels, government data showed. The size of the contraction was the largest in 17 months..The slowdown cut Thailand’s total lube consumption to 620,640kl in 2022.The volume still rose by 2pc from 610,240kl in 2021.But the increase in consumption slowed from a 6pc growth rate in the first eight months of the year.Lube demand slowed during the final months of the year mostly because of the sharp slowdown in industrial activity.Industrial production fell in December for a third month and at its fastest pace since the beginning of 2020.Consumption of heavy-duty engine oils (HDEO) fell by 9pc in December and non-automobile lubricants by 25pc.Thailand’s private consumption also slowed in December. Automobile sales fell for a second month and at their fastest pace in a year.PCMO consumption fell by 6pc in December, after rising in October and November.The outlook was more promising, with business sentiment rising in January to a seven-month high.An ongoing rebound in tourist arrivals supported that confidence. Tourist arrivals in December rose to their highest since January 2020.Tourists from China accounted for little more than 2pc of the December total. That share is likely to surge over the coming months..Japan’s Dec lube demand mixed
