Thailand’s lube demand rose for a fifth month in December even as the country’s economic growth slowed in the final months of last year.Rising lube consumption boosted demand for Group I supplies from domestic base oils producers. The move cut base oils supplies available for export and added to tight availability of Group I base oils in the Asia-Pacific region.Rising lube consumption also boosted requirements for base oils supplies from overseas markets like South Korea and Singapore.The trend highlighted the importance of southeast Asian markets like Thailand as key outlets for premium-grade base oils for suppliers like South Korea and Singapore.Rising base oils production capacity in China, and from this year in India, has consisted mostly of premium-grade base oils rather than Group I base oils.Asia’s increasingly firm Group I base oils prices versus premium-grade prices reflected the repercussions of that rise in supplies.The trend also highlighted the importance for premium-grade suppliers to maximize market share in outlets like Thailand.The country’s lube consumption of around 36,000 kilolitres (31,600t) in December was down from around 42,000kl the previous month but rose 14pc from year-earlier levels.The rebound in consumption in the second half of the year lifted total demand to 455,700kl in 2023.Consumption remained down 3pc from more than 468,000kl in 2022.But the contraction narrowed from a 13pc shortfall in the first half of the year.Demand for passenger-car motor oils rose by 17pc and for a fourth month in December.Consumption of heavy-duty engine oils rose by 11pc and for a fifth month in December..Thailand’s Dec base oils output falls
Thailand’s lube demand rose for a fifth month in December even as the country’s economic growth slowed in the final months of last year.Rising lube consumption boosted demand for Group I supplies from domestic base oils producers. The move cut base oils supplies available for export and added to tight availability of Group I base oils in the Asia-Pacific region.Rising lube consumption also boosted requirements for base oils supplies from overseas markets like South Korea and Singapore.The trend highlighted the importance of southeast Asian markets like Thailand as key outlets for premium-grade base oils for suppliers like South Korea and Singapore.Rising base oils production capacity in China, and from this year in India, has consisted mostly of premium-grade base oils rather than Group I base oils.Asia’s increasingly firm Group I base oils prices versus premium-grade prices reflected the repercussions of that rise in supplies.The trend also highlighted the importance for premium-grade suppliers to maximize market share in outlets like Thailand.The country’s lube consumption of around 36,000 kilolitres (31,600t) in December was down from around 42,000kl the previous month but rose 14pc from year-earlier levels.The rebound in consumption in the second half of the year lifted total demand to 455,700kl in 2023.Consumption remained down 3pc from more than 468,000kl in 2022.But the contraction narrowed from a 13pc shortfall in the first half of the year.Demand for passenger-car motor oils rose by 17pc and for a fourth month in December.Consumption of heavy-duty engine oils rose by 11pc and for a fifth month in December..Thailand’s Dec base oils output falls