Brazil’s base oil production, which is mainly API Group I fluids, dropped by 37% in June, while base oil imports jumped nearly 60%, compared to the same month last year, according to data released by a government agency.
Base oil production in Brazil was 24,000 metric tons for the month, compared with 38,000 tons during the same period a year ago, the National Agency of Petroleum, Natural Gas and Biofuels reported. That’s the lowest production for a month since 23,000 metric tons in April 2020, just after the onset of the COVID-19 pandemic. Sequentially, it’s down 48% from 46,000 tons in May this year.
For the January-June period, base oil production was 240,000 tons, down from 259,000 tons in the same period last year.
While domestic output slid, imports surged 58%, from 55,000 tons in June of 2021 to 87,000 tons this June, a 58% jump and the highest monthly total in 2022. Sequentially, June’s volume was up 28% from 68,000 tons imported in May.
For the first six months of this year, Brazil’s base oil imports dropped 33% to 362,000 tons, compared with 542,000 tons in the first half of 2021. Most of Brazil’s base oil imports – primarily Group II – originate from producers in the United States.
The county exported 8,500 tons of base oil in June, a 15% decrease from 10,000 tons.