Germany's March lube demand falls more slowly

Germany’s lube demand fell in March at its slowest pace in seven months amid a pick-up in consumption of engine oils.

Total consumption of 85,650t in March fell by 1pc from year-earlier levels of 86,680t, government data showed. The contraction slowed from a 15pc drop in consumption in the first three months of the year.

The improvement in lube consumption partly mirrored the outperformance of Germany’s services sector relative to the manufacturing sector.

The services industry has got a boost in several European countries in recent months from the relaxation of Covid-19-related restrictions.

A subsequent pick-up in transport activity has helped to boost engine oil consumption.

Germany’s motor oil consumption mirrored that trend, with demand rising 12pc in March to 23,990t. Demand had risen in February for the first time in nine months.

Lubricants used in automobile production such as gear oils fared less well. Germany’s car production fell by 12pc in the first four months of the year. Gear oil consumption fell in March for a ninth straight month.

But demand for metal-working fluids improved, even against the backdrop of shrinking industrial production and waning confidence about future demand.

Consumption of the lubricant rose by 4pc in March to 5,790t. The increase was the first in eight months.