Brazilian lubricant demand stabilizes in April

 

Brazilian demand for lubricating oils remained relatively stable in April, reinforcing signs of more balanced consumption compared to recent months.

According to IBP, the total lubricant consumption of 89,540 mᶟ (79,320 t) in April fell by 0.9 percent compared to 90,320 mᶟ in the same month last year.

The decline was smaller than the 9% drop in demand to 391,060 mᶟ in the first four months of the year.

Demand had rebounded sharply for nine consecutive months through June 2021. It then declined steadily for most of the following eight months.

This year's volume in April almost matched last year's higher levels, following a surge in demand in March. The revival in demand was offset by a fall in consumption of more than 20% in the first two months of the year.

The improvement in lubricant consumption may further reflect a normalization in demand after sharp fluctuations caused in part by Covid-related restrictions in 2020 and 2021.

The more resilient consumption comes even amid expectations of more anemic economic growth this year.

Brazil's industrial production has contracted every month since last August. Its manufacturing index ran out of steam in April.

Auto sales were also sluggish, falling for the ninth month in April.

The biggest weakness in lubricant consumption in April was high-performance motor oils, demand for which fell by 10%. The decline counteracted a 4% increase in demand for passenger car motor oils. Referral link