Brazil’s base oils supply stayed lower than usual in March amid a sustained slowdown in imports.Lower supply coincided with and balanced out signs of weaker domestic lube demand.The drop in base oils imports also contrasted with relatively firm domestic output levels.The dynamic suggested that weaker domestic demand was having a larger impact on supplies from overseas than supplies from the domestic market.Brazil’s base oils output rose to a five-month high of 58,000 cubic meters (51,000 tonnes) in March.The volume balanced out and recovered from a fifteen-month low of 42,000 cubic meters in February.Output of 150,000 cubic meters in the first three months of the year still fell by 16% from year-earlier levels to the lowest since end-2023.Brazil’s base oils imports fell even more steeply.Shipments of 59,000 cubic meters in March rose from 46,400 cubic meters the previous month.Import volumes in both months were still well below typical levels of more than 81,000 cubic meters/month in 2024.The slowdown cut total imports to less than 193,000 cubic meters in the first quarter of the year. The volume was the second-lowest since the beginning of 2023.The lowest level since then was in the fourth quarter of last year..Brazil’s total supply, or output and imports combined, duly fell to 117,000 cubic meters in March and to 344,000 cubic meters in the first three months of the year.The drop in imports cut their share of supply to 56% of the total in the first quarter, down from 60% in 2024.The US is Brazil’s largest source of base oils supplies from overseas markets.Plant maintenance work in the US and a seasonal pick-up in domestic consumption in recent weeks likely cushioned the impact of lower demand in markets like Brazil.The impact is likely to increase once plant maintenance ends and domestic consumption in the US faces a likely slowdown from the end of the second quarter of the year..Brazil’s February base oils supply falls.US’ Feb base oils exports to S America stay low.Argentina’s March base oils supply rises
