Brazil’s lube demand rose in December for a ninth month on the back of a jump in consumption of everything from transformer oils to engine oils.The sustained rise in demand curbed the size of a seasonal drop in Latin America’s lube consumption and of any subsequent rise in surplus base oils supplies in the region at the end of last year.More balanced supply-demand fundamentals raised the prospect of steadier requirements for replenishment base oils supplies at the start of this year.Brazil’s lube consumption among the country’s nine largest lubricants suppliers came to 90,500 cubic meters (80,100 tonnes) in December, according to IBP.The volume typically accounts for more than 85% of Brazil’s total lube consumption.The 6% rise in lube consumption from year-earlier levels slowed slightly from a 7% increase in November. But the pace of the increase held well above levels of less than 3% growth in the three months to October.The slower growth rate during those months raised concerns about a more extended slowdown in lube demand amid signs of more muted economic activity in the country.The pick-up in lube consumption growth in November and December eased those concerns for now.Brazil’s lube demand rose in December mostly on the back of a 36% rise in consumption of transformer oils. Consumption of engine oils rose by 7% and industrial oils by 3%.The rise in consumption in December helped to lift Brazil’s total lube demand to 1.21 million cubic meters in 2024. The volume rose by 6% from 1.15 million cubic meters the previous year..Brazil’s Nov base oils supply exceeds demand.Latin America Nov lube demand holds steady.Base Oil News stories and analyses also available on the ICIS platform
