Argentina’s lube demand fell in April for a second month and at its fastest pace in six months even amid signs of an ongoing recovery in economic activity.Lower lube consumption cut blenders’ requirements for base oils and contrasted with strong demand for Group I base oils in overseas markets.The diverging trends supported a recent surge in Argentina’s base oils exports since late last year.Ongoing supply-tightness and firm Group I prices in markets like Europe raised the prospect of extending that pick-up in overseas shipments.Argentina’s lube consumption of 15,300 cubic meters (13,500 tonnes) in April fell by 11% from year-earlier levels, government data showed..The second contraction in as many months put an end to a nascent recovery in the country’s lube demand late last year and early this year.Lube demand fell even amid signs of a recovery in Argentina’s economic growth extending into the second quarter of the year.The country’s automobile sales rose in April for a tenth month, and automobile production for the fourth time in five months.Weaker lube demand triggered a drop in lubricants production and instead boosted the incentive for blenders to maintain lower base oils feedstock inventories.Lower domestic consumption contrasted with unusually strong overseas demand for Group I base oils.It also freed up supplies for Argentina to tap that demand.Base oils exports of close to 12,500 cubic meters in April were the second highest in more than a decade. The highest volume during that time was in March.The April shipment was bound for the Netherlands, with expected arrival around end-May.Argentina’s February and March shipments moved to Nigeria.Almost all of its shipments during the four months before that moved to Brazil.The rise in shipments to Nigeria and the Netherlands reflected strong demand and firm prices in those markets.The subsequent dip in shipments to Brazil removed a recent and convenient source of additional supplies for that market.It also coincided with signs of slowing lube demand and healthy base oils availability in that market..Argentina’s March base oils/lube demand mixed.Latin America March lube demand falls
