Brazil’s lube demand edged up in July, ending a four-month sequence of sliding consumption.The fall in lube demand during the second quarter of the year coincided with a slowdown in economic growth as high interest rates and concern about the impact of US tariffs curbed activity.Any extension of the steadier lube demand beyond the start of the third quarter of the year could similarly point to more stable economic activity.Signs of demand holding steadier could also incentivize blenders to maintain larger stocks of base oils feedstock supplies.Any such moves would add to Brazil’s persistent requirement for large volumes of base oils supplies from overseas markets.The US would be the key beneficiary of any such pick-up in base oils requirements from the South American country.Brazil’s lube consumption came to 106,000 cubic meters (94,000 tonnes) in July, according to IBP..The data covers ten of Brazil’s largest lube suppliers, which usually account for more than 80% of its total lube consumption.The country's lube consumption rose by 1% in July from year-earlier levels, mostly on the back of strong demand for industrial oils and transformer oils.Engine oils consumption by contrast extended its fall for a fifth month.While lube consumption resumed its rise, the muted growth rate added to signs of ongoing pressure on the country's economic activity.Brazil’s automobile production fell in July for a second month, while sales edged up in July after falling the previous month..Even with steadier lube consumption, Brazil remained reliant on a sustained flow of large volumes of base oils from the US to supplement its own supply and to cover domestic demand.A large flow of imports from the US extended into July.But shipments could slow down in August after US exports to Brazil slumped at the end of the second quarter of the year.ICONIC Lubricants remained Brazil’s largest lube supplier in July, with Vibra Energia the second-largest and Raizen the third-largest.MOOVE’s market share extended its recovery in July to a six-month high of more than 16% of total sales. Its sales slumped early this year after a fire at its blending plant in Rio de Janeiro..Latin America’s June lube demand falls.US June base oil exports to S America fall.Brazil’s June base oils supply stays high.Base Oil News stories and analysis also available on ICIS platform
