Latin America’s lube demand rose in July for the third time in four months as Brazil’s consumption extended its strong rise.A more muted slowdown in consumption in other key markets like Mexico provided further support.The region’s rising lube consumption required additional base oils supplies to meet that demand.Steady-to-lower regional base oils output instead coincided with a drop in US base oils exports to the region, leaving the supply-demand balance increasingly tight.Latin America’s lube consumption of more than 205,000 tonnes in July was similar to the previous month and up 4% from year-earlier levels, government and industry data showed.The recovery in demand since May left the region's total consumption of around 1.40 million tonnes in the first seven months of the year almost the same as year-earlier levels.The firm consumption contrasted with a 9% fall in US base oils and lube demand in the first half of the year and a similar-sized fall in Europe’s lube demand in the first half.Latin America’s demand got support in July from a sustained rise in Brazil’s lube consumption and signs that a slowdown in Mexico’s demand could be bottoming out.The country’s lube consumption of around 50,000 tonnes in July fell by 5% and for a third month from year-earlier levels, government data showed.The pace of the slowdown improved from an 18% contraction in May and a 13% fall in June.Latin America’s rising lube demand contrasted with a fall in regional base oils output and US exports to the region in July for a sixth straight month.Base oils output and US exports to the region combined held at less than 190,000 tonnes in July for a second month and fell by 17% from year-earlier levels.The lower volume left supply lagging demand in July for a fifth month.Any further rise in Latin America’s lube consumption would compound the supply tightness.It would also increase its demand for additional base oils supplies from overseas markets in view of the region’s limited base oils production capacity..Brazil’s July lube demand extends rise.Argentina’s July lube demand falls.US July base oils exports fall
Latin America’s lube demand rose in July for the third time in four months as Brazil’s consumption extended its strong rise.A more muted slowdown in consumption in other key markets like Mexico provided further support.The region’s rising lube consumption required additional base oils supplies to meet that demand.Steady-to-lower regional base oils output instead coincided with a drop in US base oils exports to the region, leaving the supply-demand balance increasingly tight.Latin America’s lube consumption of more than 205,000 tonnes in July was similar to the previous month and up 4% from year-earlier levels, government and industry data showed.The recovery in demand since May left the region's total consumption of around 1.40 million tonnes in the first seven months of the year almost the same as year-earlier levels.The firm consumption contrasted with a 9% fall in US base oils and lube demand in the first half of the year and a similar-sized fall in Europe’s lube demand in the first half.Latin America’s demand got support in July from a sustained rise in Brazil’s lube consumption and signs that a slowdown in Mexico’s demand could be bottoming out.The country’s lube consumption of around 50,000 tonnes in July fell by 5% and for a third month from year-earlier levels, government data showed.The pace of the slowdown improved from an 18% contraction in May and a 13% fall in June.Latin America’s rising lube demand contrasted with a fall in regional base oils output and US exports to the region in July for a sixth straight month.Base oils output and US exports to the region combined held at less than 190,000 tonnes in July for a second month and fell by 17% from year-earlier levels.The lower volume left supply lagging demand in July for a fifth month.Any further rise in Latin America’s lube consumption would compound the supply tightness.It would also increase its demand for additional base oils supplies from overseas markets in view of the region’s limited base oils production capacity..Brazil’s July lube demand extends rise.Argentina’s July lube demand falls.US July base oils exports fall
