Brazil’s base oils supply rose in March to the second-highest level in more than two years amid a simultaneous pick-up in output and rebound in imports.Higher supply coincided with a seasonal pick-up in the country’s lube demand. But consumption fell sharply from year-earlier levels, compounding the size of its shortfall versus supply.Rising supply and weaker demand left Brazil carrying an unusually large volume of surplus supplies into the second quarter of the year.The US especially would likely feel the impact of any slowdown in Brazil's requirements for overseas supplies.The US is the country’s largest source of base oils supplies from overseas markets.Brazil's base oils supply, or domestic production and imports combined, rose to more than 162,000 cubic meters (144,000 tonnes) in March, government data showed.The volume rose from less than 125,000 cbm in February to the second-highest level since late-2021.The highest level since then was in January.Brazil’s base oils output stayed unusually high throughout the first quarter of the year following the completion of an extended round of plant maintenance work during second-half 2023.A surge in base oils imports during that period last year helped to cover for the drop in production.Imports then remained unusually high during the first quarter of this year even with the recovery in domestic output.The high import volumes helped to absorb a swathe of surplus US base oils supplies during the first quarter of the year.They also boosted Brazil's supply to levels that far outpaced a seasonal rise in the country’s lube demand in March.The surplus of its supply over demand duly rose to more than 50,000 cbm in March.The volume almost doubled from the previous month to the second-highest level since late-2022.It also boosted the surplus in the first quarter of the year to a three-year-high of more than 150,000 cbm.The high surplus volumes raised the prospect of curbing Brazil’s typical requirements for overseas supplies in the second quarter of the year.Even so, the impact on US base oils shipments could be more muted if that market faced less pressure over the size of its supply surplus. .Brazil’s March lube demand falls.US’ February base oils exports improve
Brazil’s base oils supply rose in March to the second-highest level in more than two years amid a simultaneous pick-up in output and rebound in imports.Higher supply coincided with a seasonal pick-up in the country’s lube demand. But consumption fell sharply from year-earlier levels, compounding the size of its shortfall versus supply.Rising supply and weaker demand left Brazil carrying an unusually large volume of surplus supplies into the second quarter of the year.The US especially would likely feel the impact of any slowdown in Brazil's requirements for overseas supplies.The US is the country’s largest source of base oils supplies from overseas markets.Brazil's base oils supply, or domestic production and imports combined, rose to more than 162,000 cubic meters (144,000 tonnes) in March, government data showed.The volume rose from less than 125,000 cbm in February to the second-highest level since late-2021.The highest level since then was in January.Brazil’s base oils output stayed unusually high throughout the first quarter of the year following the completion of an extended round of plant maintenance work during second-half 2023.A surge in base oils imports during that period last year helped to cover for the drop in production.Imports then remained unusually high during the first quarter of this year even with the recovery in domestic output.The high import volumes helped to absorb a swathe of surplus US base oils supplies during the first quarter of the year.They also boosted Brazil's supply to levels that far outpaced a seasonal rise in the country’s lube demand in March.The surplus of its supply over demand duly rose to more than 50,000 cbm in March.The volume almost doubled from the previous month to the second-highest level since late-2022.It also boosted the surplus in the first quarter of the year to a three-year-high of more than 150,000 cbm.The high surplus volumes raised the prospect of curbing Brazil’s typical requirements for overseas supplies in the second quarter of the year.Even so, the impact on US base oils shipments could be more muted if that market faced less pressure over the size of its supply surplus. .Brazil’s March lube demand falls.US’ February base oils exports improve
