The Latin American base oil market is going through a challenging time as its top economies – Brazil and Mexico – underperform and domestic base oil production falls, according to an Argus reporter. The United States is the main supplier in the region, but shipments from there decreased at the onset of the coronavirus pandemic in 2020 and have not yet recovered, and neither has production within the region.

Total base oil production in the United States declined 6% in 2022, with paraffinic production falling 7%, while naphthenic production decreased 2%, according to data released Tuesday by the U.S. Energy Information Administration. December’s output dropped 10%.

Cosan’s Moove and HF Sinclair’s lubricants and specialties segment both reported higher profits for 2022 but lower profits in the year’s fourth quarter, while Quaker Chemical reported net losses for both periods. Meanwhile, profits were up in the quarter and year for Perimeter Solutions’ specialty products segment.