Brazil’s lube demand rose in May for the second time in three months amid improving consumer and business sentiment.
Lube consumption of 91,620mᶟ (81,160t) in May rose by 5pc from year-earlier levels, according to IBP. The pace of the increase was the fastest in a year.
The firmer demand left consumption of 444,610mᶟ in the first five months of the year down 7pc from year-earlier levels. The shortfall had been 12pc at the end of the first quarter.
The firmer lube demand in Brazil mirrored a similar pattern in Argentina and contrasted with weaker growth in Europe.
A pick-up in lube demand growth in Brazil has coincided with strong employment, rising confidence about industrial production prospects and improving consumer sentiment.
Brazil’s auto sales continued to shrink in May. But the 0.9pc contraction was the smallest in 10 months. Industrial production shrank in April at its slowest pace in nine months.
The rise in lube demand extended to both auto and industrial oils. In Argentina, automobile lubricants had led the demand growth.
Demand for passenger car engine oils rose by 6pc in May. That contrasted with a 3pc fall in consumption of heavy-duty engine oils. Demand for industrial oils rose by 9pc, and transformer oils by 1pc.
