Brazil’s lube demand fell in April for a second month, pointing to a more mixed outlook for the country after firm economic growth in the first quarter of the year.Lube consumption of 96,500 cubic meters (85,500 tonnes) in April among the country’s nine largest lube suppliers fell by 6% from year-earlier levels, according to IBP..The volume typically accounts for around 80% of the country’s total lube consumption.The drop in lube demand left blenders’ inventories lasting longer, curbing their urgency to replenish stocks.Concern that the fall in lube demand would continue instead incentivized buyers to hold lower stocks and to procure smaller volumes of base oils feedstock supplies more frequently.The strategy boosted the attraction of seeking base oils supplies from domestic rather than overseas sources.Moves to hold lower stocks also left buyers more exposed to the risk of tighter-than-expected supply if demand held close to current levels.The drop in lube demand in March and April followed a sharp rise in the country’s interest rates since last September to tame a pick-up in inflation.Brazil’s economic activity held firm through the first quarter of the year despite the higher interest rates.But the country’s automobile sales fell in April from year-earlier levels for the first time in thirteen months, adding to signs of slower growth.Brazil’s passenger-car motor oil (PCMO) consumption fell by 13% in April, contrasting with steadier industrial oils consumption.PCMO consumption is seen more as bellwether for the state of the services sector. Industrial oils consumption is more reflective of the state of the manufacturing sector. ICONIC Lubricants remained Brazil’s largest lubricants supplier in April, with Vibra Energia the second largest and Raizen the third largest.The market share of all those suppliers rose strongly since February as they covered for a sharp dip in lube supplies from MOOVE following a fire at its blending plant in Rio de Janeiro that month..Brazil March base oil supply stays lower.Argentina’s April base oils/lube demand mixed
