Thailand’s lube demand rose in December for the first time in five months, adding to signs of firmer-than-expected consumption in southeast Asia at the end of the year.Firmer lube demand contrasted with a slump in consumption of base oils from domestic suppliers, freeing up more Group I supplies for export.But base oils shipments to overseas markets were also lower than usual, triggering a jump in surplus supplies at the end of the year.The surplus volumes could help to cushion the impact of Group I plant maintenance work in the Asia-Pacific region in the first two months of this year.Thailand’s lube consumption of 37,600 kilolitres (33,300 tonnes) in December rose by 6% and for the first time in five months from year-earlier levels, government data showed.The firmer consumption cut the size of a seasonal dip in demand from more than 40,000 kilolitres in November.Lube demand got a boost from a strong pick-up in consumption of heavy-duty engine oils and industrial lubricants.Stronger lube demand contrasted with a drop in domestic consumption of base oils from Thailand’s Group I refiners to a seventeen-month low.The disconnect pointed to a pick-up in consumption of premium-grade base oils to produce the lubricants.The disconnect also freed up more Group I supplies for export.These rose by 7% and for the fifth time in six months from year-earlier levels.But they fell from the previous month and lagged typical export volumes in the first eleven months of the year.The slowdown in shipments added to a regionwide dip in Group I base oils exports in December, compounding the tight availability of the grade.The slowdown in shipments also cut Thailand’s total demand, or domestic consumption and exports combined, to less than 68,000 kilolitres in December.The volume was the lowest in ten months and lagged the country’s supply by more than 15,000 kilolitres.The surplus more than reversed a 5,000-kilolitre shortfall the previous month and left the country better-positioned to cover any pick-up in domestic and overseas demand at the start of this year..Thailand Dec base oils supply holds firm.Japan’s December base oils output falls.China’s Dec base oils imports mixed.India’s Dec lube demand extends rise
