Brazil’s lube demand fell in May for a third month, adding to signs of moderating activity in an economy whose growth stayed unexpectedly strong early this year.The dip in lube consumption coincided with firm domestic base oils output and a strong pick-up in US base oils exports to the country in recent months.The weaker fundamentals left the country’s base oils supply exceeding demand in April for the first time in five months.Lower lube demand in May raised the prospect of repeating that dynamic for a second month.Brazil’s lube consumption of 103,000 cubic meters (91,000 tonnes) in May fell by 5% from year-earlier levels, according to IBP..The volume typically accounts for around 80% of the country’s total lube consumption.Lube demand fell mostly because of a 6% fall in engine oils consumption that outweighed steadier industrial oils demand.Brazil’s weakening lube consumption in 2025 contrasted with stronger-than-expected economic growth so far this year.The weaker lube consumption instead tallied with signs of a gradual moderation of that economic growth in the face of interest rates at their highest level in almost two decades.Brazil’s index of economic activity extended its rise in April for a fourth month. But the pace of the increase was the slowest in four months.The country’s industrial production also contracted in April from year-earlier levels for the first time in eleven months.Slower lube demand contrasted with a rise in US base oils exports to Brazil in April to close to their highest level in ten months.The rise in shipments added to a surge in US exports to Brazil in March and a subsequent jump in the South American country’s base oils imports in April to a five-month high.Higher imports and firm domestic base oils output raised the prospect of a more extended pick-up in surplus supplies.Lower lube demand could instead incentivize blenders to maintain lower rather than higher stocks.The mismatch could trigger a subsequent slowdown in requirements for supplies from overseas markets.ICONIC Lubricants remained Brazil's largest lube supplier in May with a share of more than 27% of the country's total lube consumption. Vibra Energia was the second largest.MOOVE’s share of Brazil's lube consumption held below 15% of the total in May for a fourth month, down from a more-than 21% share in 2024.The lower share reflected the impact of a drop in supplies following a fire at its blending plant in Rio de Janeiro in February..US April base oils exports to S America stay high.Latin America’s April lube demand falls.Brazil's April base oil supply exceeds demand
