Latin America’s lube demand rose in May for the first time in four months as a recovery in consumption in Mexico countered shrinking demand in other key markets like Brazil.The rise in demand could be an outlier.Consumption revived against the backdrop of uncertainty about the timing and size of any new tariffs on exports from Latin America to the US.Even so, firm demand contrasted with shrinking lube consumption in other key markets like Europe, adding to the region's importance and attraction for base oils suppliers in the US.Rising lube demand speeded up the consumption of base oils feedstock supplies and blenders’ need to replenish their stocks.Rising demand in May, and the need to replenish stocks, also contrasted with and magnified the impact of a drop in Latin America’s base oils supply that month.Any extension of the pick-up in demand raised the prospect of steady requirements for replenishment base oils supplies over the following months.Latin America’s lube consumption came to more than 210,000 tonnes in May, government data showed..The volume rose from less than 205,000 tonnes in April and by 3% from year-earlier levels.Demand rose mostly because of an 8% jump in Mexico’s lube consumption.The increase was the first in seven months and coincided with firmer domestic automobile sales and steadier automobile production in May.Auto sales and production then fell in June.Mexico’s stronger lube demand, combined with signs of firm consumption in markets like Chile, more than balanced out a sustained dip in Brazil’s lube consumption.Latin America’s rising lube demand contrasted with a fall in the region’s base oils supply.Its total supply, or base oils output and US exports to the region combined, fell back to less than 210,000 tonnes in May, from close to 220,000 tonnes in each of the previous two months.The drop in supply to a three-month low contrasted with the rise in lube demand to a ten-month high.Demand duly outpaced supply for the first time in three months and for the fifth time in seven months.The protracted supply-shortfall since late last year raised the prospect of leaving blenders’ stocks at low levels and sustaining steady buying interest for replenishment supplies over the coming months..Brazil’s May lube demand extends fall.Asia’s May lube demand falls.US’ May base oils exports rise
