Latin America’s lube demand fell in April for a third month as a dip in consumption in markets like Mexico and Brazil gathered pace.The fall in lube sales slowed the consumption of blenders’ base oils feedstock supplies and contrasted with a sustained rise in the region’s demand throughout most of last year.The dynamic curbed blenders' urgency to replenish their lubricants and base oils stocks and instead incentivized them to hold lower inventories over the coming months. A dip in requirements contrasted with a rise in Latin America’s base oils supplies in March and April amid a surge in US exports to the region.Weaker demand and rising supplies raised the prospect of curbing further blenders’ interest in securing additional volumes.Latin America’s lube consumption of more than 195,000 tonnes in April was similar to the previous month and down 10% from year-earlier levels, government data showed..Demand fell in April on the back of an 11% drop in lube consumption in Brazil and in Argentina.Mexico’s lube consumption fell even more steeply in April, by more than 20%.The contraction added to signs of the large economic impact on Mexico especially of increased US tariffs on global imports.Latin America’s weaker lube consumption contrasted with a rise in the region’s base oils supplies for a second month.Total supply, or regional output and US exports to Latin America, held at more than 219,000 tonnes in April for a second month and for just the third time in the past twenty-one months.The elevated supply volumes reflected firm regional output combined with a surge in US exports to the region to the highest level in sixteen months.Higher supply and lower demand left Latin America with its second-largest surplus in sixteen months. The highest surplus during that period was in March.The rise in surplus volumes in March and April curbed regional blenders’ urgency to lock in additional supplies.Weaker demand raised the prospect of compounding that dynamic..Brazil’s April lube demand falls.Argentina’s April base oils/lube demand mixed.US April base oils exports to S America stay high
