Italy’s lube demand fell to a three-year low in August, suggesting that the slide in Europe’s lube consumption has yet to bottom out.Italy’s lube consumption of 21,500 tonnes fell by 8% in August and for the third time in four months from year-earlier levels, government data showed.The volume was the lowest since August 2021.Automotive lubricants consumption fell by 5% from year-earlier levels and industrial oils demand by 10%.Europe’s lube consumption typically follows a similar trend to Italy’s lube demand, whose consumption data is released several weeks before other key markets in the region.Italy’s lube demand in August dipped by 38% from 34,700 tonnes in July, reflecting a typical seasonal drop in consumption throughout Europe in the month of August.But the size of the contraction was the steepest in three years.Blenders typically trim feedstock and lube inventories ahead of the lull in demand in the month of August.Those moves may have been less extreme than usual this year, with many blenders already maintaining lower stocks in response to Europe’s protracted fall in lube consumption.Even so, the steep contraction in Italy’s lube consumption in August from July and from year-earlier levels left blenders’ lower inventories lasting longer than expected.The weak demand and lingering stocks curbed their urgency to procure replenishment feedstock supplies for the following months.Concern that Europe’s lube consumption will continue to shrink could also prompt blenders to cut the volume of supplies that they had previously planned to procure for the coming months.Any such moves would compound a seasonal slowdown in lube and base oils demand in the final months of the year.Europe’s domestic Group I base oils prices fell in second-half September amid already-weaker supply-demand fundamentals..Europe’s July lube demand improves.Europe’s July Grp I base oil exports rise
Italy’s lube demand fell to a three-year low in August, suggesting that the slide in Europe’s lube consumption has yet to bottom out.Italy’s lube consumption of 21,500 tonnes fell by 8% in August and for the third time in four months from year-earlier levels, government data showed.The volume was the lowest since August 2021.Automotive lubricants consumption fell by 5% from year-earlier levels and industrial oils demand by 10%.Europe’s lube consumption typically follows a similar trend to Italy’s lube demand, whose consumption data is released several weeks before other key markets in the region.Italy’s lube demand in August dipped by 38% from 34,700 tonnes in July, reflecting a typical seasonal drop in consumption throughout Europe in the month of August.But the size of the contraction was the steepest in three years.Blenders typically trim feedstock and lube inventories ahead of the lull in demand in the month of August.Those moves may have been less extreme than usual this year, with many blenders already maintaining lower stocks in response to Europe’s protracted fall in lube consumption.Even so, the steep contraction in Italy’s lube consumption in August from July and from year-earlier levels left blenders’ lower inventories lasting longer than expected.The weak demand and lingering stocks curbed their urgency to procure replenishment feedstock supplies for the following months.Concern that Europe’s lube consumption will continue to shrink could also prompt blenders to cut the volume of supplies that they had previously planned to procure for the coming months.Any such moves would compound a seasonal slowdown in lube and base oils demand in the final months of the year.Europe’s domestic Group I base oils prices fell in second-half September amid already-weaker supply-demand fundamentals..Europe’s July lube demand improves.Europe’s July Grp I base oil exports rise
