Finished lubes consumption in Japan fell 7%, while production edged up 3% in July, and lubricant imports fell more than 50%, compared to the same month last year, according to data released Wednesday by the Japan Ministry of Economy, Trade and Industry.
The country consumed 137,667 kiloliters (124,000 metric tons) in July, compared with 147,253 kL in the same month last year. Sequentially, the July volume was down 23% from June’s 179,668 kL. The highest monthly demand this year was 193,528 kL in April.
Lubricants production, including exported volumes, increased to 194,453 kL in July, compared to 189,279 kL. Sequentially, the production volume was down 20% from 244,315 kL in June. July’s production total was the lowest since 163,569 kL in February, and it was the first time since March that production didn’t top the 206,000 kL mark.
Lubricant exports declined 4% to 74,231 kL in July, compared to 77,167 kL in the same month of 2021. Sequentially, the amount was 8% from 74,231 kL in June.
Lubricant imports dropped 51% year to year to 11,769 kL in July. Sequentially, the total was also 56% the 26,755 kL imports volume in June.
Supply and demand conditions for some goods in Japan have been extremely tight, due in part to a surge in global demand and the impact of supply-chain disruptions, the Bank of Japan said in its Outlook for Economic Activity and Prices released July 22.
The bank noted that many companies involved in manufacturing have pointed out that supply and demand conditions have been tighter than before the pandemic, and such industries have tended to raise selling prices. It’s possible that the cost pass-through rate will rise for items with significantly tightened supply and demand conditions, the bank suggested.