Brazil’s base oils supply recovered in January and exceeded demand amid a rebound in imports.Firm domestic lube consumption limited the size of the surplus and slowed blenders’ opportunity to replenish lower stocks.The dynamic raised the prospect of sustaining firm requirements for additional supplies ahead of a seasonal pick-up in demand at the end of the first quarter of the year.Brazil’s base oils supply, or domestic production and imports combined, rose to 138,400 cubic meters (123,000 tonnes) in January, government data showed.The volume rose from a fifteen-month low of 87,000 cubic meters in November and closer to more typical levels of around 135,000 cubic meters/month in 2024.Supply rose as imports rebounded to 88,000 cubic meters in December, up from a three-year low of 33,500 cubic meters the previous month.But the higher supply barely exceeded the country’s demand of around 128,000 cubic meters in January..The supply surplus of around 10,000 cubic meters in January improved from a shortfall of more than 34,000 cubic meters in December.A shortfall of more than 19,000 cubic meters in the three months to January still contrasted with a surplus of more than 90,000 cubic meters during the same period a year earlier.The large surplus at the beginning of last year curbed buyers’ urgency to seek additional supplies as they first worked down their existing stocks.Blenders’ tighter supply dynamics at the start of this year limited their leverage to hold back and instead increased their need to speed up the procurement of additional replenishment supplies.Any extension of Brazil’s sustained rise in domestic lube consumption would add to their requirements for additional volumes.It would also increase their reliance on additional supplies from overseas markets at a time of rising concerns about tariff-related disruptions to typical trade flows..Brazil’s Jan lube demand extends rise.US Dec base oil exports to S America fall.Latam’s December lube demand rises
Brazil’s base oils supply recovered in January and exceeded demand amid a rebound in imports.Firm domestic lube consumption limited the size of the surplus and slowed blenders’ opportunity to replenish lower stocks.The dynamic raised the prospect of sustaining firm requirements for additional supplies ahead of a seasonal pick-up in demand at the end of the first quarter of the year.Brazil’s base oils supply, or domestic production and imports combined, rose to 138,400 cubic meters (123,000 tonnes) in January, government data showed.The volume rose from a fifteen-month low of 87,000 cubic meters in November and closer to more typical levels of around 135,000 cubic meters/month in 2024.Supply rose as imports rebounded to 88,000 cubic meters in December, up from a three-year low of 33,500 cubic meters the previous month.But the higher supply barely exceeded the country’s demand of around 128,000 cubic meters in January..The supply surplus of around 10,000 cubic meters in January improved from a shortfall of more than 34,000 cubic meters in December.A shortfall of more than 19,000 cubic meters in the three months to January still contrasted with a surplus of more than 90,000 cubic meters during the same period a year earlier.The large surplus at the beginning of last year curbed buyers’ urgency to seek additional supplies as they first worked down their existing stocks.Blenders’ tighter supply dynamics at the start of this year limited their leverage to hold back and instead increased their need to speed up the procurement of additional replenishment supplies.Any extension of Brazil’s sustained rise in domestic lube consumption would add to their requirements for additional volumes.It would also increase their reliance on additional supplies from overseas markets at a time of rising concerns about tariff-related disruptions to typical trade flows..Brazil’s Jan lube demand extends rise.US Dec base oil exports to S America fall.Latam’s December lube demand rises
