Argentina’s lube demand rose in May for the third time in four months and at its fastest pace in eight months even against the backdrop of mixed economic growth signals.
Lube consumption of 21,390mᶟ (18,950t) in May rose by 9pc from year-earlier levels of 19,590mᶟ, government data showed.
Consumption of 97,100mᶟ in the first five months of the year was up 2pc from 95,530mᶟ during the same period last year and the highest for that period since 2018.
The rise in demand mirrored steady-to-firm consumption in other markets in the region and contrasted with the weakness of lube consumption in Europe.
The firm demand also coincided with strong automobile sales and healthy industrial production growth in the country. Those factors were outweighing for now the impact of high inflation and weak consumer sentiment.
Auto sales rose in May for a third month and at their fastest pace in a year. Industrial production rose in April for the 17th time in 18 months, even if at a slower pace than during most of last year.
Lube demand rose in May mostly because of a 13pc rise in consumption of automobile lubricants. Demand for industrial lubricants rose by just 2pc.
The rise in demand contrasted with a sustained slowdown in the country’s lube production. Output fell in May for a seventh month in eight to 25,520mᶟ.
The slowdown has left lube production of 117,090mᶟ in the first five months of the year down 4pc from year-earlier levels.