Latin America’s lube demand rose in June for the second time in three months as strong consumption in Brazil outweighed a sustained fall in demand in Mexico and Argentina.Rising demand left base oils supply from regional refiners and US shipments struggling to keep pace for a fourth straight month.The trend boosted pressure on regional refiners to increase base oils output and on blenders to secure shipments from other more distant markets.Latin America’s lube consumption of around 205,000 tonnes in June rose from close to 198,000 tonnes the previous month and by 5% from year-earlier levels, government and industry data showed.The firm demand lifted total consumption to 613,000 tonnes in the second quarter of the year.The volume rose from 572,000 tonnes during the first three months of the year and by 1% from the same period last year to the highest in two years.The demand growth mostly reflected a sustained rise in lube consumption in Brazil so far this year.Its stronger demand countered Mexico’s weaker lube consumption that fell in twelve of the last fourteen months to June.Demand in Mexico fell mostly because of a steep slump in consumption of automobile lubricants.Argentina’s lube consumption also extended its fall in June for an eighth month.Even with the slowdown in those markets, Latin America’s lube consumption continued to outpace base oils supply from regional refiners and from the US.Base oils output and US exports to the region combined edged down to less than 190,000 tonnes in June, from around 195,000 tonnes the previous month.The prospect of a slight dip in Latin America’s lube consumption in the third quarter of the year could ease the supply tightness.At the same time, unexpectedly tight base oils supply in the US could compound the tightness.Any weather-related supply disruptions during the Atlantic hurricane season could further trim or delay the flow of shipments from the US to the region.The tight supply-demand fundamentals in Latin America during the second quarter of the year already limited the opportunity to build stocks to cover against any such supply disruptions.The tighter stocks could in turn magnify the impact of any such disruptions.The dynamic added to the need for blenders to target shipments from other markets to help to cover the existing shortfall and to cushion the impact of any even larger shortfall if US shipments face delays over the coming weeks..Brazil’s June lube demand extends rise.Argentina’s June lube demand falls.US’ June base oils exports to Brazil rise
Latin America’s lube demand rose in June for the second time in three months as strong consumption in Brazil outweighed a sustained fall in demand in Mexico and Argentina.Rising demand left base oils supply from regional refiners and US shipments struggling to keep pace for a fourth straight month.The trend boosted pressure on regional refiners to increase base oils output and on blenders to secure shipments from other more distant markets.Latin America’s lube consumption of around 205,000 tonnes in June rose from close to 198,000 tonnes the previous month and by 5% from year-earlier levels, government and industry data showed.The firm demand lifted total consumption to 613,000 tonnes in the second quarter of the year.The volume rose from 572,000 tonnes during the first three months of the year and by 1% from the same period last year to the highest in two years.The demand growth mostly reflected a sustained rise in lube consumption in Brazil so far this year.Its stronger demand countered Mexico’s weaker lube consumption that fell in twelve of the last fourteen months to June.Demand in Mexico fell mostly because of a steep slump in consumption of automobile lubricants.Argentina’s lube consumption also extended its fall in June for an eighth month.Even with the slowdown in those markets, Latin America’s lube consumption continued to outpace base oils supply from regional refiners and from the US.Base oils output and US exports to the region combined edged down to less than 190,000 tonnes in June, from around 195,000 tonnes the previous month.The prospect of a slight dip in Latin America’s lube consumption in the third quarter of the year could ease the supply tightness.At the same time, unexpectedly tight base oils supply in the US could compound the tightness.Any weather-related supply disruptions during the Atlantic hurricane season could further trim or delay the flow of shipments from the US to the region.The tight supply-demand fundamentals in Latin America during the second quarter of the year already limited the opportunity to build stocks to cover against any such supply disruptions.The tighter stocks could in turn magnify the impact of any such disruptions.The dynamic added to the need for blenders to target shipments from other markets to help to cover the existing shortfall and to cushion the impact of any even larger shortfall if US shipments face delays over the coming weeks..Brazil’s June lube demand extends rise.Argentina’s June lube demand falls.US’ June base oils exports to Brazil rise
