Italy’s lube demand fell in June for the third time in four months, raising concern about a more prolonged slowdown in Europe’s lube consumption.The drop in consumption in one of Europe’s largest markets removed a key support that had helped to balance out weak lube demand in other parts of the region over the past year.The fall in consumption instead raised the prospect of extending a prolonged slowdown in Europe’s lube consumption since the middle of 2021.The drop in lube consumption had multiple repercussions, including a fall in Europe’s base oils requirements that compounded the current global overhang of Group III base oils.Weak demand and the high cost of money also incentivized blenders to minimize finished lube and base oils feedstock inventories and to procure smaller volumes more frequently.Those trends were likely to continue until Europe’s lube demand showed signs of revival.The fall in Italy’s lube demand in June suggested any such revival was unlikely any time soon.The country’s lube consumption of 31,700 tonnes in June fell from 33,700 tonnes in May and by 6% from year-earlier levels, government data showed.Lube demand fell because of a 13% drop in industrial oils consumption as process oils sales slumped.The contraction outweighed a 1% rise in automobile lubricants consumption in June amid steady demand for passenger car motor oils.The fall in industrial oils consumption mirrored the steeper slide in Italy’s industrial production in the first five months of this year.The steadier automobile lube consumption mirrored signs of firmer growth in the country’s services sector in the first half of the year..Italy’s May base oils output falls.France, Spain May lube demand mixed
Italy’s lube demand fell in June for the third time in four months, raising concern about a more prolonged slowdown in Europe’s lube consumption.The drop in consumption in one of Europe’s largest markets removed a key support that had helped to balance out weak lube demand in other parts of the region over the past year.The fall in consumption instead raised the prospect of extending a prolonged slowdown in Europe’s lube consumption since the middle of 2021.The drop in lube consumption had multiple repercussions, including a fall in Europe’s base oils requirements that compounded the current global overhang of Group III base oils.Weak demand and the high cost of money also incentivized blenders to minimize finished lube and base oils feedstock inventories and to procure smaller volumes more frequently.Those trends were likely to continue until Europe’s lube demand showed signs of revival.The fall in Italy’s lube demand in June suggested any such revival was unlikely any time soon.The country’s lube consumption of 31,700 tonnes in June fell from 33,700 tonnes in May and by 6% from year-earlier levels, government data showed.Lube demand fell because of a 13% drop in industrial oils consumption as process oils sales slumped.The contraction outweighed a 1% rise in automobile lubricants consumption in June amid steady demand for passenger car motor oils.The fall in industrial oils consumption mirrored the steeper slide in Italy’s industrial production in the first five months of this year.The steadier automobile lube consumption mirrored signs of firmer growth in the country’s services sector in the first half of the year..Italy’s May base oils output falls.France, Spain May lube demand mixed