Brazil’s lube demand rebounded in April, speeding up the consumption of surplus base oils supplies that built up during the first quarter of the year.Firmer lube consumption coincided with signs of improving economic activity in April.The country’s automobile sales rebounded last month after contracting in March for the first time in seven months. Automobile production also rose in April after falling the previous month.Brazil’s finance ministry this month raised its forecast for the country’s economic growth in 2024 to 2.5%, from 2.2% previously.The forecast has yet to reflect the impact of recent floods in the country’s state of Rio Grande do Sul.Any slowdown in economic activity caused by the floods would likely impact the country’s lubricants consumption.Lube demand of 103,100 cubic meters (91,300 tonnes) in April rose by 17% from year-earlier levels, according to IBP.The timing of the rise in demand was unusual.Brazil’s lube consumption typically peaks for the year in the month of March before falling sharply the following month.Lube consumption in April instead rose by 1% from March to an eight-month high.The rise in demand was spread across all the key lubricant sectors.Industrial oils consumption rose by 21% in April from year-earlier levels. Heavy-duty engine oil demand was up 18% and passenger-car motor oil demand up 20%.ICONIC Lubricants was Brazil’s largest lube supplier in April, with its share of total lube sales the highest in thirteen months.Moove was the second-largest lube supplier and Vibra Energia the third largest.Brazil’s rising lube demand in April followed a drop in US base oils exports to the country in March to an eleven-month low.The diverging trends raised the prospect of a slowdown in Brazil's base oils imports and a drop in the country’s surplus supply in April.The surplus of supply over demand rose to a three-year high in the first quarter of the year..US’ March base oils exports stay lower
Brazil’s lube demand rebounded in April, speeding up the consumption of surplus base oils supplies that built up during the first quarter of the year.Firmer lube consumption coincided with signs of improving economic activity in April.The country’s automobile sales rebounded last month after contracting in March for the first time in seven months. Automobile production also rose in April after falling the previous month.Brazil’s finance ministry this month raised its forecast for the country’s economic growth in 2024 to 2.5%, from 2.2% previously.The forecast has yet to reflect the impact of recent floods in the country’s state of Rio Grande do Sul.Any slowdown in economic activity caused by the floods would likely impact the country’s lubricants consumption.Lube demand of 103,100 cubic meters (91,300 tonnes) in April rose by 17% from year-earlier levels, according to IBP.The timing of the rise in demand was unusual.Brazil’s lube consumption typically peaks for the year in the month of March before falling sharply the following month.Lube consumption in April instead rose by 1% from March to an eight-month high.The rise in demand was spread across all the key lubricant sectors.Industrial oils consumption rose by 21% in April from year-earlier levels. Heavy-duty engine oil demand was up 18% and passenger-car motor oil demand up 20%.ICONIC Lubricants was Brazil’s largest lube supplier in April, with its share of total lube sales the highest in thirteen months.Moove was the second-largest lube supplier and Vibra Energia the third largest.Brazil’s rising lube demand in April followed a drop in US base oils exports to the country in March to an eleven-month low.The diverging trends raised the prospect of a slowdown in Brazil's base oils imports and a drop in the country’s surplus supply in April.The surplus of supply over demand rose to a three-year high in the first quarter of the year..US’ March base oils exports stay lower
