Brazil’s lube demand rose to a fourteen-month high in May even with a slump in consumption in the country’s southern state of Rio Grande do Sul.The rise in lube demand in other regions of the country pointed to still-firm underlying growth that outweighed at least for now the impact of the widespread damage caused by the floods in Rio Grande do Sul.An extension of that trend of rising consumption would coincide with tighter base oils supply-demand fundamentals in the US during the second quarter of the year.The US is the largest source of Brazil’s base oils imports.The tighter fundamentals in the US raised the prospect of curbing the size of its base oils export volumes to markets like Brazil over the coming months.US base oils exports to Brazil remained higher than usual during the first four months of this year.Firm domestic lube demand in Brazil and tighter base oils availability from overseas markets would increase the country’s reliance on base oils supplies from domestic refineries.These supplies rebounded strongly so far this year following a heavy round of plant maintenance during second-half 2023.Brazil’s lube consumption of 108,000 cubic meters (96,000 tonnes) in May rose from 103,000 cubic meters in April and by 7% from year-earlier levels, according to IBP.The volume was the highest since March 2023.Lube demand rose even as consumption in Rio Grande do Sul fell by 35% in May from year-earlier levels to the lowest since April 2020.The region’s industrial oils consumption fell by 27% and passenger-car motor oil consumption by 43%.The slump in consumption cut the region’s share of Brazil’s lube demand to less than 4% of the total. The share was typically more than 6% of the total over the previous twelve months.The fall in demand had a major impact on Brazil’s total lube consumption even as it extended its rise.Excluding the Rio Grande do Sul region, Brazil’s lube demand rose by 10% in May to the highest since the first quarter of 2022..US’ April base oils exports rise.Brazil April base oils supply surplus falls.Latin America’s April lube demand rises
Brazil’s lube demand rose to a fourteen-month high in May even with a slump in consumption in the country’s southern state of Rio Grande do Sul.The rise in lube demand in other regions of the country pointed to still-firm underlying growth that outweighed at least for now the impact of the widespread damage caused by the floods in Rio Grande do Sul.An extension of that trend of rising consumption would coincide with tighter base oils supply-demand fundamentals in the US during the second quarter of the year.The US is the largest source of Brazil’s base oils imports.The tighter fundamentals in the US raised the prospect of curbing the size of its base oils export volumes to markets like Brazil over the coming months.US base oils exports to Brazil remained higher than usual during the first four months of this year.Firm domestic lube demand in Brazil and tighter base oils availability from overseas markets would increase the country’s reliance on base oils supplies from domestic refineries.These supplies rebounded strongly so far this year following a heavy round of plant maintenance during second-half 2023.Brazil’s lube consumption of 108,000 cubic meters (96,000 tonnes) in May rose from 103,000 cubic meters in April and by 7% from year-earlier levels, according to IBP.The volume was the highest since March 2023.Lube demand rose even as consumption in Rio Grande do Sul fell by 35% in May from year-earlier levels to the lowest since April 2020.The region’s industrial oils consumption fell by 27% and passenger-car motor oil consumption by 43%.The slump in consumption cut the region’s share of Brazil’s lube demand to less than 4% of the total. The share was typically more than 6% of the total over the previous twelve months.The fall in demand had a major impact on Brazil’s total lube consumption even as it extended its rise.Excluding the Rio Grande do Sul region, Brazil’s lube demand rose by 10% in May to the highest since the first quarter of 2022..US’ April base oils exports rise.Brazil April base oils supply surplus falls.Latin America’s April lube demand rises