Argentina’s March lube demand rises

Argentina’s lubricating oil demand rose in March for a second month as a pick-up in consumption of automobile lubricants gathered pace.

Total lube demand of 24,140mᶟ (21,380t) in March rose by 8pc from year-earlier levels to the highest in more than four years, government data showed.

Even with the surge in demand, total consumption of 57,660mᶟ in the first quarter of the year was down 2pc from 59,060mᶟ during the final three months of last year.

Argentina’s lube consumption slowed sharply late last year and early this year after rebounding in the first nine months of 2021.

The slowdown mirrored weaker industrial oil production and car sales. It also coincided with an even steeper slowdown in lube demand in Brazil.

Like Brazil, the slowdown in Argentina's lube consumption bottomed out early this year before returning to growth.

Unlike Brazil, the rise in lube consumption in Argentina reflected firmer demand for automotive, industrial and marine lubricants.

Argentina’s industrial production rebounded in February. Car sales rose in March for the first time in eight months.

In Brazil, demand for industrial lubricants continued to contract even in March.

The firmer consumption in South America’s two largest markets contrasted with signs of increasingly weak lube demand in Europe, where projections for economic growth are being cut back steadily.