Brazil’s lubricating oil demand held relatively firm in April, adding to signs of more balanced consumption compared with recent months.
Total lube consumption of 89,540mᶟ (79,320t) in April fell by 0.9pc from 90,320mᶟ the same month a year earlier, according to IBP.
The contraction was smaller than the 9pc fall in demand to 391,060mᶟ in the first four months of the year.
Demand had rebounded strongly for nine straight months to June 2021. It then fell steadily over most of the next eight months.
The April volume this year almost matched last year’s higher level and followed a rise in demand in March. The firmer demand contrasted with a more-than 20pc slump in consumption during the first two months of the year.
The improvement in lube consumption may reflect more a normalization of demand following sharp fluctuations partly caused by Covid-related restrictions in 2020 and 2021.
The steadier consumption comes even amid expectations of more anemic economic growth this year.
Brazil’s industrial production has contracted every month since last August. Its manufacturing index lost momentum in April.
There was also little support from automobile sales, which fell in April for a ninth month.
The main weakness in April's lube consumption was for heavy-duty engine oils, whose demand fell by 10pc. The contraction countered a 4pc rise in demand for passenger car engine oils.
