Brazil’s lube demand fell in June for a fourth month, adding to signs of a slowdown in the country’s economic activity.Falling lube demand raised the prospect of cutting the country’s requirements for base oils supplies from overseas markets.Brazil relied on overseas supplies for close to 60% of its base oils requirements in the first five months of the year. The US typically accounts for more than 70% of its overseas supplies.Brazil's more muted lube demand and any slowdown in base oils requirements from the US would coincide with a seasonal slowdown in consumption in that market during the summer months.Slower consumption in Brazil and the US, and a subsequent rise in surplus volumes, would put pressure on base oils suppliers to target other markets instead.Brazil’s lube consumption of 97,300 cubic meters (86,000 tonnes) in June fell from more than 104,000 cubic meters in May and by 11% from year-earlier levels, IBP data showed..The data covers nine of Brazil’s largest lube suppliers, which usually account for more than 80% of the country’s total lube consumption.Lube demand fell mostly because of a 14% drop in engine oils consumption.Falling engine oils consumption coincided with a drop in the country’s automobile sales in June for the second time in three months, as well as lower automobile output.Falling lube demand and lower auto sales and production added to signs of a slowdown in Brazil’s economic growth.The country’s economic activity index fell in May from the previous month for the first time in five months and more sharply than expected.Economic activity slowed against the backdrop of high interest rates that were raised again in June to the highest level since 2006.ICONIC Lubricants was Brazil’s largest lube supplier in June with a share of more than 28% of the total. The share rose from less than 25% in 2024, partly because of a dip in supplies from Moove, whose blending plant in Rio de Janeiro suffered a fire early this year.Moove’s share of Brazil’s lube sales rose to more than 15% of the total for the first time since January. It had accounted for more than 21% of Brazil’s lube consumption in 2024..Latin America’s May lube demand rises.Brazil’s May base oils supply matches demand
