Fourth quarter 2005 lubricant sales volumes in the United States fell 6.5 percent from the same period of 2004, according to the latest data from the National Petrochemical and Refiners Association.
The Quarterly Index on Lubricant Sales report, which was released March 22, showed sales volumes for all of 2005 finishing 3.2 percent lower than 2004. The market has now shrunk five out of the past six years.
The fourth-quarter decline was led by the industrial lubricant segment, which saw a 14-percent drop in volumes. Sales of automotive lubes slid 5.4 percent, while grease sales were off by 5.8 percent. Demand for process oils dipped 1.4 percent.
For the 12-month period, the industrial and automotive segments were down by 6.6 percent and 1.4 percent, respectively. Grease sales finished the year 3.8 percent lower, while process oils fell 6.7 percent.
U.S. lube demand grew a scant 0.6 percent in 2004, according to the QUILS report. From 1999 to 2003, the market shrank at annual rates of 3.3 percent, 6.2 percent, 5 percent and 5.4 percent. The market is now 7.9 percent smaller than in 2002, the index year for the survey.
The associations report also cited paraffinic and naphthenic base oil manufacturing data gathered by the U.S. Energy Information Administration showing fourth-quarter production dropping 4.6 percent to 15 million barrels. Base oil output for all of 2005 was 59.4 million barrels, a decrease of 4.1 percent from 2004.
Wax production rose 40 percent in the fourth quarter to 1.5 million barrels and 10.7 percent for the year to 5.6 million barrels.