Peru’s base oils and lube imports surged in April to the highest in more than three years following the delivery of a swathe of supplies from the US.
Total imports of base oils and lubricants combined came to more than 22,000 kilolitres (19,510t) in April, according to provisional customs data.
The volume rose from less than 13,500kl in March and by 68pc from year-earlier levels. The March volume had already been the highest in 11 months.
The surge in shipments in March and April lifted the country’s total base oil and lube imports to 51,460kl in the first four months of the year. The volume was up 12pc from 46,060kl during the same period last year.
The timing of those imports in early 2021 coincided with a strong rebound in Peru’s economic growth.
The timing of this year’s imports has coincided with a slowdown in the pace of that growth in the face of rising global inflationary pressures.
Economic activity held firm during the first few months of the year. Peru’s auto sales rose in May for a 15th straight month. Industrial production rose in March for a second month and at its fastest pace in seven months.
Even with that firm start to the year, Peru’s base oil and lube imports in March and April exceeded typical monthly imports of closer to 9,000 kl/month.
The rise in supplies mostly reflected the delivery of a swathe of shipments from the US, especially in April.
Those deliveries reflected the impact of a surge in US base oil exports in March as the country completed the clear-out of an overhang of surplus supplies from end-2021 and early this year.
US base oil supplies are now tighter.
But the delivery of this larger-than-usual volume of shipments has boosted importers’ stocks and curbed any immediate need to replenish inventories.
An expected slowdown in economic activity and lube demand would delay further the need to replenish stocks.