France’s June lube demand falls

France’s lube demand fell in June amid a drop in automobile and industrial oils consumption.

The slowdown mirrored a similar drop in lube consumption in Italy at a time when economic activity was still getting a post-pandemic lift and a strong boost from tourism activity.

Economic growth has slowed more since then as consumers and businesses struggled to absorb a swathe of cost pressures.

Total lube demand of 46,450t in June fell by 3pc from year-earlier levels, according to Centre Professionel des Lubrifiants (CPL).

Demand typically rises in the month of June from the previous month amid a seasonal pick-up in lube consumption.

The rise in month-on-month demand this June was the second slowest in the last five years.

France’s industrial oils demand fell by 7pc in June amid a slump in consumption of lubricants like metal-working fluids.

Demand fell even as the country’s industrial production rose strongly in June from the previous month.

The stronger industrial activity in June contrasted with an increasingly pessimistic outlook.

The country’s purchasing managers’ index fell in June for a second month, even at it still pointed to expansion. It fell further in July and in August to levels that indicated contraction.

The trend mirrored a similar slowdown in Italy’s industrial oils consumption.

But that country’s automobile lube demand still rose in July amid strong activity in the tourism sector.

France’s services sector enjoyed a similar boost from tourism during the summer months.

Even with that support, its automobile lube consumption still fell in June, especially for passenger car motor oils.

The slowdown in lube consumption in key European markets coincided with tight base oils supply in the region in the second quarter of the year. The lower demand eased the impact of the tight supply.

Demand continued to ease during the third quarter, while supply availability improved.