Brazil’s base oil market is off to a slower start in 2025 as domestic production and imports both declined significantly in January compared to the same month a year earlier.
The country’s refineries produced 45,000 metric tons of virgin base oils in the first month of this year, according to the latest data from the National Agency on Petroleum, Natural Gas and Biofuels, 22% less than the 57,600 tons made in January of 2023.
It’s worth noting that January of 2023 had the highest monthly output since before the COVID-19 pandemic.
Base oil imports to the country totaled 79,200 tons in January, down 28% from 110,400 tons in the same month of the previous year. Again the January 2023 level was unusually high.
Brazil is the biggest finished lubricant market in South America and also the largest base oil producer, although it imports more base oils than it produces. Most of the imports are API Group II oils produced in the United States.
The South American country exports far lower amounts of base oils. In January shipments totaled 7,200 tons, compared to 15,200 tons a year earlier.