Thailand’s Group I base oils supply rose in May even as some plant-maintenance work cut the country’s output of the lubricants feedstock.Higher Group I supply in April and May raised the prospect of cushioning the impact of a more extended round of plant-maintenance work starting in July.A seasonal slowdown in demand at the start of the third quarter and an ongoing fall in lube consumption from year-earlier levels could further help to balance out the impact of the maintenance work.Thailand’s Group I base oils output of 51,900 kilolitres (46,000 tonnes) in May fell from 58,000 kilolitres in April, government data showed.The drop in output to a four-month low coincided with maintenance work on a Group I plant during second-half May.Maintenance work on Thailand's other Group I unit is set to start around mid-July and last much longer, with completion expected around end-August.The longer shutdown boosted the need to build larger stocks to cover requirements during that period.Thailand’s base oils exports fell to a fifteen-month low in May, facilitating that requirement.The drop in exports tightened availability of Group I base oils for other Asia-Pacific markets in May.But it left Thailand with an increasingly large volume of surplus supplies to carry over the following months.Thailand’s total Group I supply, or output less domestic and overseas demand, rose in May to the third-highest level since 2022. The fourth-highest level since then was in April..The rise in surplus supply and drop in exports suggested that this month’s plant-maintenance work could have had a larger impact on the Asia-Pacific market in the second quarter of the year than during the current quarter.Weaker domestic demand could further cushion the impact of the plant-shutdown.Thailand’s lube consumption of 37,000 kilolitres in May fell by 14% and for a third month from year-earlier levels.The timing of the contraction coincided with concern about, followed by the US’ announcement of sharply-higher tariffs on global imports.Thailand in May slashed its economic growth forecast for this year partly because of concern about a slowdown in global economic growth and the impact of US trade policy on the country’s exports..Japan’s May base oils output falls.China’s May base oils demand falls.India’s May base oils supply matches demand.S Korea’s May base oils output rises
