Italy’s lube demand fell in May for the second time in three months as consumption of industrial oils extended its slowdown.Lube consumption of 33,700 tonnes in May fell by 3% from the same month a year earlier, government data showed.Demand fell as a 10% fall in industrial oils consumption outweighed a 4% rise in auto lube sales.A seasonal pick-up in consumption lifted Italy’s total lube demand by 15% in May from the previous month.But the size of the increase from the month of April was smaller than usual.Italy’s lube demand is a useful bellwether for the state of Europe’s lube market, whose consumption data tends to be released several weeks after Italy. The country’s weaker demand in May followed a pick-up in consumption the previous month in Italy and in other key European markets like France and Spain.The slowdown in Italy’s demand in May pointed to a continuation of an uneven recovery in the region’s lube consumption in recent months.The lack of an extended pick-up in consumption boosted the incentive for blenders to maintain lower finished lube and feedstock inventories, especially during the summer months when demand usually faces a seasonal slowdown.The relative volatility of Europe’s lube demand growth in recent months also complicated supply plans for the region’s base oils refiners and distributors.Europe’s growing reliance on base oils imports added to those complications in view of the longer time-lag between production and delivery of imported shipments.Even so, uncertainty about the region’s lube demand prospects increased the attraction for base oils suppliers to maintain lower stocks..France, Spain April lube demand rises
Italy’s lube demand fell in May for the second time in three months as consumption of industrial oils extended its slowdown.Lube consumption of 33,700 tonnes in May fell by 3% from the same month a year earlier, government data showed.Demand fell as a 10% fall in industrial oils consumption outweighed a 4% rise in auto lube sales.A seasonal pick-up in consumption lifted Italy’s total lube demand by 15% in May from the previous month.But the size of the increase from the month of April was smaller than usual.Italy’s lube demand is a useful bellwether for the state of Europe’s lube market, whose consumption data tends to be released several weeks after Italy. The country’s weaker demand in May followed a pick-up in consumption the previous month in Italy and in other key European markets like France and Spain.The slowdown in Italy’s demand in May pointed to a continuation of an uneven recovery in the region’s lube consumption in recent months.The lack of an extended pick-up in consumption boosted the incentive for blenders to maintain lower finished lube and feedstock inventories, especially during the summer months when demand usually faces a seasonal slowdown.The relative volatility of Europe’s lube demand growth in recent months also complicated supply plans for the region’s base oils refiners and distributors.Europe’s growing reliance on base oils imports added to those complications in view of the longer time-lag between production and delivery of imported shipments.Even so, uncertainty about the region’s lube demand prospects increased the attraction for base oils suppliers to maintain lower stocks..France, Spain April lube demand rises