Argentina’s lube demand fell in June for an eighth month and at a faster pace than the previous month.The sharper contraction mirrored signs of a slowdown in the country’s economic activity in June compared with the previous month.Total lube consumption of close to 19,000 cubic meters (16,700 tonnes) in June fell from 19,500 cubic meters in May and by 14% from year-earlier levels, government data showed.The pace of the contraction speeded up from an 11% slowdown in May.The sharper contraction added to other signs of slowing economic activity.Argentina’s automobile output fell for a seventh month in June and at its fastest pace in more than two years.The country’s monthly leading economic index, compiled by economists at the University Torcuato Di Tella, fell in June for the first time in four months.The sharper drop in lube demand in June added to the incentive for blenders to cut output and maintain lower finished lube and base oils stocks.An 18% slide in the country’s lube production in June duly outpaced the fall in lube demand, trimming stocks.The slowdown in lube production raised the prospect of a build-up of base oils supplies in the short-term and a subsequent slowdown in blenders’ base oils requirements.Lower lube inventories in turn left the market facing a stronger recovery in lubricants production once demand starts to revive.A stronger recovery in lube production would in turn boost blenders’ base oils requirements.Blenders focused for now on the short term and the ongoing slide in demand, with industrial oils consumption falling more steeply than automobile lube demand in June for a third straight month..Brazil’s June lube demand extends rise.Latin America’s May lube demand falls
Argentina’s lube demand fell in June for an eighth month and at a faster pace than the previous month.The sharper contraction mirrored signs of a slowdown in the country’s economic activity in June compared with the previous month.Total lube consumption of close to 19,000 cubic meters (16,700 tonnes) in June fell from 19,500 cubic meters in May and by 14% from year-earlier levels, government data showed.The pace of the contraction speeded up from an 11% slowdown in May.The sharper contraction added to other signs of slowing economic activity.Argentina’s automobile output fell for a seventh month in June and at its fastest pace in more than two years.The country’s monthly leading economic index, compiled by economists at the University Torcuato Di Tella, fell in June for the first time in four months.The sharper drop in lube demand in June added to the incentive for blenders to cut output and maintain lower finished lube and base oils stocks.An 18% slide in the country’s lube production in June duly outpaced the fall in lube demand, trimming stocks.The slowdown in lube production raised the prospect of a build-up of base oils supplies in the short-term and a subsequent slowdown in blenders’ base oils requirements.Lower lube inventories in turn left the market facing a stronger recovery in lubricants production once demand starts to revive.A stronger recovery in lube production would in turn boost blenders’ base oils requirements.Blenders focused for now on the short term and the ongoing slide in demand, with industrial oils consumption falling more steeply than automobile lube demand in June for a third straight month..Brazil’s June lube demand extends rise.Latin America’s May lube demand falls
