Argentina’s April lube demand falls

Argentina’s lube demand fell in April, ending a recent recovery in consumption amid a drop in demand for automobile lubricants.

Lube consumption of 18,050mᶟ (15,990t) in April fell by 9pc from year-earlier levels, government data showed. The contraction was the first in three months.

The slowdown left consumption of 75,710mᶟ in the first four months of the year almost level-pegging with year-earlier levels of 75,940mᶟ.

Demand was up from 72,010mᶟ during the same period in 2019.

The steady lube consumption mirrored a similar trend in Brazil and coincided with a slowdown in the pace of economic growth. The economy rebounded last year from the low base level in 2020.

Argentina’s industrial production growth and economic activity index continued to rise in March. But they slowed from the previous month.

The country’s automobile sales rose in April for a second month. But the pace of the increase also slowed from the previous month.

Argentina’s consumption of automobile lubricants fell by 12pc in April, outpacing the 6pc contraction in demand for industrial lubricants.

A drop in consumption would curb Argentina’s base oil requirements and need for imports at a time when surplus supply of the lubricant feedstock has tightened.