Brazil’s base oils supply exceeded demand in July, after lagging consumption the previous month, amid a recovery in output and imports.The pick-up in supply helped to replenish depleted stocks.Even so, the country remained unusually exposed to any weather-related disruptions to shipments from the US in view of its reliance on imports to cover more than half its demand requirements.Shipments from the US accounted for a growing share of those imports in 2023 and so far this year.Brazil’s total supply, or output and imports combined, recovered to more than 138,000 cubic meters (123,000 tonnes) in July, government and provisional customs data showed.Supply rose from a nine-month low of around 107,000 cubic meters in June to levels that were similar to volumes in April and May.Supply got a boost from a pick-up in base oils output to a three-month high of 54,000 cubic meters.Output mostly held close to that level since February.The trend suggested that the country would need to rely more on higher imports than on output to cover for any further rise in demand.The rebound in imports in July, and in shipments from the US, highlighted that dynamic.Even so, the country is likely to be able to rely on output to cover a larger share of its demand in the second half of this year than last year.Production fell sharply during that period last year because of a heavy round of plant maintenance.Brazil’s higher supply in July contrasted with a dip in total demand to around 115,000 cubic meters.Demand held close to that level in each of the previous four months to June.Supply duly reverted to a surplus, after lagging consumption in June for the first time this year..Brazil’s July lube demand extends rise.US’ June base oils exports to Brazil rise
