Thailand’s lube demand rose in July for eleventh time in twelve months, adding to the attraction for overseas base oils producers to target the country with more premium-grade supplies.Lube consumption of 38,500 kilolitres (34,100 tonnes) in July rose by 17% from year-earlier levels, government data showed.Demand for heavy-duty engine oils rose by 7% and for non-automobile lubricants by 37%.The rise in consumption of industry-related lubricants coincided signs of improving economic growth in the country, including a pick-up in industrial production in July.Shell Company of Thailand (Shell) was the country’s largest lube supplier in July for a third straight month. PTT Oil and Retail (PTT) was the second largest.Even so, Shell remained the second-largest supplier in the first seven months of the year, behind PTT.But the shortfall of less than 1,500 kilolitres to PTT narrowed from more than 13,000 kilolitres in the first four months of the year.PTT was Thailand’s largest lube supplier in 2023.Thailand’s rising lube demand in July and over the past year boosted requirements for premium-grade base oils.The country is reliant on supplies from overseas to cover those requirements.Rising demand for premium-grade base oils and a reliance on overseas supplies to meet that demand made Thailand a key market for refiners in Singapore and South Korea.For those producers, China’s growing self-sufficiency and the prospect of a similar scenario in India increased the importance of southeast Asia and especially outlets like Thailand.The country’s base oils imports of 220,000 kilolitres in the first seven months of the year rose by more than 38,000 kilolitres, or 18%, from year-earlier levels.Shipments from Singapore and South Korea accounted for more than 86% of that volume.The increase in imports outpaced the 11,200-kilolitre, or 15%, rise in Thailand’s consumption of Group I base oils from domestic refiners during the same period. .Thailand’s July base oils output rises.Japan’s July base oils supply stays lower.India’s July lube demand holds firm.Base Oil News stories and analysis also available on ICIS platform
