Germany’s Sept lube demand mixed

Germany’s domestic lube demand rose in September for the first time in four months, contrasting with an ongoing slump in demand from regional and overseas buyers.

The larger fall in lube exports cut Germany's total demand for a 13^th straight month.

The fall in demand added to a regionwide slowdown in lube consumption as Europe’s economic growth faced growing pressure during the second half of the year.

Slowing lube demand in turn cut blenders’ requirements for base oils feedstock.

The disconnect between domestic and export lube demand mirrored a similar trend with the country’s factory orders.

These fell much more sharply in September from the previous month for foreign orders than for domestic orders.

Domestic lube demand is also more reflective of more immediate consumption.

Germany’s economy extended its expansion in the third quarter mostly because of strong household expenditure and firm production in the automotive industry.

Firmer engine oils consumption relative to industrial oils mirrored a similar trend in other markets in Europe and other parts of the world.

Total domestic lube demand of 78,340t in September rose by 26pc from the same time last year, government data showed.

Lube consumption of 220,850t in the third quarter rose by 6pc from 208,600t during the same period last year.

The rise in September demand for the first time in four months mostly reflected the sustained strength of engine oils consumption.

Demand for engine oils rose by 15pc in September and for the fourth time in five months.

The firm consumption mirrored similar strength for metal-working fluids and countered a sustained slide in demand for process oils.

Firm domestic lube consumption contrasted with a 26pc slide in Germany’s lubricants exports in September.

The slump in lube exports cut their share of Germany’s lube demand to just 57pc of the total in September, down from 69pc the same time a year earlier.

Lube exports fell amid an even steeper drop in process oils demand, as well as sliding shipments of metalworking fluids and engine oils.

The drop in exports cut Germany’s total lube demand to 181,150t in September, down 10pc from year-earlier levels.