Thailand’s base oils supply held firm in December amid a sustained rise in output since the middle of last year.Group I base oils output of 57,400 kilolitres (50,800 tonnes) in December slipped from close to 60,000 kilolitres the previous month, government data showed.Production still rose by 22% and for a sixth month from year-earlier levels.The rise in Group I base oils production tapped increasingly tight availability of the grade in Asia following a steady flow of plant closures in the region in recent years.Asia’s firm prices for Group I heavy grades and especially for brightstock reflected the tight availability.The firm prices also incentivized refiners with the capacity to raise Group I production to implement such moves.The sustained strength of Asia brightstock prices especially suggested that supply continued to lag demand even with any pick-up in output.Asia’s tight availability magnified the importance of supplies from Thailand and the impact of a drop in supply from any of the remaining Group I refiners in the region.Indonesia’s sole Group I base oils unit was taken offline last month for scheduled maintenance work that was set to extend until second-half February.The shutdown added to buyers’ reliance on spot volumes from Thailand early this year, at a time when regional demand faced the prospect of a seasonal rise in the coming weeks.Thailand’s base oils supply got a further boost from a rise in base oils imports throughout last year.The rise in imports covered a larger share of domestic blenders’ feedstock requirements as they used more premium-grade base oils in their lubricant formulations.That move in turn freed up more of Thailand’s Group I base oils for overseas markets, especially in the second half of the year.Thailand’s total base oils output of 649,000 kilolitres in 2024 edged down from 655,000 kilolitres the previous year.The slowdown reflected a dip in production at the start of last year because of plant maintenance work.Production then rebounded in the second half of the year.Output of close to 353,000 kilolitres in second-half 2024 rose from less than 300,000 kilolitres in the first half of the year and by 12% from less than 315,000 kilolitres in second-half 2023..Thailand Nov base oil supply holds firm.Asia’s November lube demand mixed.Asia exports to SE Asia fall in September
