Brazil’s lube demand fell in March for the first time in three months, adding to signs of a more widespread slowdown in consumption throughout Latin America.Brazil’s firm lube demand in recent months helped to cushion against the impact of weaker consumption in other markets like Argentina and Mexico.The drop in its consumption in March removed that support even as Argentina’s lube demand extended its fall.Any sustained slowdown in Brazil’s lube consumption would also curb the country’s requirements for overseas base oils supplies.Its demand for overseas supplies already eased in recent months following a recovery in domestic base oils production and as it worked through a build-up of surplus volumes earlier in the year.Brazil’s lube demand of 102,400 cubic meters (90,700 tonnes) in March fell by 7% from year-earlier levels, according to IBP.The contraction left the country’s total consumption of 283,100 cubic meters in the first quarter of the year up just 1% from year-earlier levels.The drop in demand in March coincided with more mixed signals about the strength of Brazil’s economic growth.The country’s economic activity rose in February for a fourth month from month-earlier levels, but the pace of the increase was the slowest since November.Brazil’s industrial oils consumption rose by 9% in March from the previous month, at a time of year when lube consumption typically gets a seasonal lift.The pace of the increase in the month of March from February this year was the slowest in five years.The slower growth followed a fall in Brazil’s industrial production in February from the previous month for a second month.The 13% fall in industrial oils consumption in March from year-earlier levels was the sharpest drop in almost four years.Brazil’s passenger-car motor oil consumption fell at a slower 3% pace from year-earlier levels. The contraction was the first in eleven months.The slowdown mirrored with a fall in the country’s automobile sales in March for the first time in seven months. Automobile production fell in March for the fifth time in six months.ICONIC Lubricants remained Brazil’s largest lubricants supplier in March for a second month, with Moove the second largest, even as their share of total sales fell.Most of Brazil’s other lubricants suppliers, such as Raizen, Petronas and Castrol, saw their share of total sales rise..Argentina’s March lube demand falls.Brazil’s Feb lube demand extends rise
