Brazil’s lubricating oil demand edged lower in July for the third month in four amid a sharp slowdown in consumption of heavy-duty engine oils (HDEO).
Lube consumption of 91,950mᶟ (81,450t) in July fell by 3pc from the same month a year earlier, according to IBP. The 6pc rise in demand from June was in line with recent years.
The lower consumption cut the country’s lube demand to 623,100mᶟ in the first seven months of the year. The volume was down 6pc from 662,930mᶟ during the same period last year.
Brazil’s lube demand has trended lower in recent months in the face of high inflation, rising interest rates and weak industrial production and retail sales.
Those same headwinds have put growing pressure on lube consumption and base oils demand in Europe especially.
Brazil’s economy grew faster than expected in the first half of the year even in the face of rising costs.
Tax cuts and the passage of a stimulus package in July are expected to support steady growth during the second half of the year.
The country’s automobile sales rose in July for the first time in a year even in the face of higher interest rates.
Signs of improving car sales coincided with steadier passenger car motor oil demand in recent months. Consumption of 142,970mᶟ in the five months to July was up 2pc from year-earlier levels.
The steady demand contrasted with a steep slowdown in HDEO consumption, which fell in July for a fourth straight month.
HDEO is more reflective of the state of industrial activity in view of its usage in haulage vehicles.
Consumption of industrial lubricants also fell in July for a second month.
