Thailand’s Group I base oils output rose to a five-month high in April, contrasting with a fall in domestic lube demand for a second month.The diverging trends left the country’s supply outpacing demand by the largest volume since second-half 2022.The diverging trends also mirrored a similar dynamic in Japan, where weaker domestic demand freed up more supplies for export.The pick-up in surplus volumes in markets like Thailand and Japan raised the prospect of easing the tight availability of Group I base oils in Asia, especially for heavy grades.Thailand’s base oils output of 58,100 kilolitres (51,400 tonnes) in April rose from 54,200 kilolitres the previous month to the highest since November, government data showed..Higher output contrasted with a fall in domestic base oils sales to 10,100 kilolitres in April.Sales fell for a third straight month from year-earlier levels to the lowest this year.Lower base oils sales partly reflected a drop in the country’s lube consumption in April for a second month.The contraction in demand coincided with a drop in Thailand’s economic growth expectations following the US’ imposition of tariffs on global imports at the beginning of April.The US is Thailand’s largest export market.Like Japan, Thailand’s lower domestic demand freed up more base oils supplies for stock-building or for export.Asia’s Group I base oils prices pointed to ongoing supply-tightness so far in the second quarter of the year even with the pick-up in surplus availability in markets like Thailand.The region’s Group I base oils prices held firm on an outright basis and relative to Group II base oils and gasoil prices.Firm base oils prices coincided with Group I plant maintenance in the Middle East and China in April and preceded maintenance work in Thailand in May and July.Most of the maintenance work was completed by end-May.Thailand’s healthy supply and weak demand triggered a surge in the country’s surplus volumes to more than 23,000 kilolitres in April.The volume rose from a 9,400-kilolitre surplus in March to the highest in thirty-two months.The large surplus provided a cushion to balance out any drop in output caused by plant-maintenance work in Thailand in the month of May..Japan’s April base oil/lube demand falls.S Korea’s April base oils output rises.China’s April base oils output holds firm.India's April base oils supply exceeds demand
