Thailand’s base oils output fell to a thirty-two-month low in July as one of the country’s Group I units shut down for scheduled maintenance work.Total output came to 33,300 kilolitres (29,500 tonnes) in July, government data showed.The volume fell from close to 57,000 kilolitres in June to the lowest since late-2022..Output fell because of a slump in Thai Lube’s base oils output to less than 2,500 kilolitres.Its base oils unit was taken offline in early July for scheduled maintenance-work.The unit's output fell from typical levels of more than 20,000 kilolitres/month to the lowest in more than a decade.The volume was lower than during previous periods of plant-maintenance work, suggesting the shutdown was more extensive than usual.The drop in Thailand's base oils output coincided with a fall in Singapore’s exports in July, persistently-low exports from Japan and a dip in shipments from key suppliers in the Middle East..Asia’s Group I base oils prices and their premium to Singapore gasoil held in a narrow range so far in the third quarter of the year even with the tighter supply.Steady price levels pointed to an adjustment in demand that left supply sufficient to cover requirements.Asia’s lube demand typically faces a seasonal slowdown in the month of August.Any such slowdown would follow signs of weaker lube consumption in southeast Asia in July.An extension of Asia’s steady Group I price levels would require a further adjustment in demand following the restart of the base oils unit in Thailand and subsequent recovery in supply.The unit resumed operations around mid-August.Asia’s lube demand typically enjoys a seasonal boost at the end of the third quarter of the year.The region’s Group I prices suggested that such a rise in demand could repeat itself this year.China’s domestic Group I prices firmed steadily relative to FOB Asia prices throughout the month of August.India’s imported Group I cargo price-premium to FOB Asia prices also held firm so far in the third quarter and well above levels at the end of the second quarter of the year..India’s July base oils imports rise.Japan’s July base oils exports fall.Saudi Arabia’s July Yanbu/Jeddah base oils exports fall.Base Oil News stories and analysis also available on ICIS platform
