Brazil’s Jan lube demand falls

Brazil’s lubricating oil demand fell in January to a 20-month low amid a slump in demand for passenger car engine oils especially.

Lube demand of 72,390m³ (64,100t) in January fell from 82,220m³ the previous month to its lowest since May 2020.

Sales fell by 20pc on year-on-year, with demand slipping for a fifth straight month.

Lube consumption had averaged more than 92,400 m³/month in 2021.

The sustained slowdown in lube consumption has mirrored a sharp fall in the country’s automobile sales through the second half of 2021 and the beginning of this year.

Brazil’s industrial production has contracted for six straight months to January. The January contraction was the steepest since mid-2020.

Brazil’s base oils production has also slowed in recent months. But the slowdown has been much less steep than the fall in the country’s lube demand.