Brazil’s base oils supply almost matched demand in September, leaving blenders with lean stocks.Balanced inventories gave blenders the flexibility to take advantage of any pick-up in availability of surplus base oils supplies in overseas markets in the coming months.Balanced stocks also cushioned the impact of any slowdown in domestic lube consumption over the coming months.Those factors in turn pointed to expectations of a pick-up in surplus base oils supplies, as well as concern about the strength of Brazil’s lube consumption.Base oils supply, or output and imports combined, recovered to around 135,000 cubic meters (120,000 tonnes) in September, government data showed..Supply rose from a six-month low of 96,000 cubic meters in August, when a dip in imports coincided with lower domestic output.Output stayed lower in September for a second month. But imports rebounded on the back of a surge in shipments from the US.The dynamic highlighted Brazil’s reliance on imports to cover the larger share of its supplies..Total demand, or domestic consumption and exports combined, held firm at more than 135,000 cubic meters in September as firmer lube demand balanced out a drop in base oils exports.The volume almost matched total supply in September and contrasted with a large shortfall the previous month.The lack of any build-up of surplus volumes raised the prospect of buyers maintaining regular procurement of supplies from domestic and overseas sources to cover requirements.The focus on maintaining balanced inventories could also curb demand for additional supplies unless prices are at unusually competitive price levels.Brazil’s high interest rates and expectations of slowing economic growth over the coming months boosted the attraction for blenders to maintain balanced inventories..Brazil’s September base oils output stays lower.Brazil September base oils imports rise
