Brazil’s base oil production in March was higher than in the same month of 2020, the first such year-on-year increase since September. Sequentially, it was the second consecutive month that the country’s base oil import volumes were 200% higher than in the same month in 2020.
The South American country’s base oil production – primarily API Group I – grew to 42,000 metric tons in March, 7% higher than the output in March 2020, according to data released by the National Agency of Petroleum, Natural Gas and Biofuels, ANP.
The last time Brazil reported higher base oil production in a month than in the year-earlier period was in September 2020, when the country produced 49,000 tons, up 26% from 39,000 tons in the same month of 2019. From October through January, production was generally in the range of 40,000-45,000 tons per month, representing year-to-year decreases of 15%-25%.
The country imported 135,000 tons of base oil in March, up from 45,000 tons in the same month in 2020. In February, Brazil imported 138,000 tons of base oil, also up 200% from 46,000 tons in the same month in 2020. Most of Brazil’s base oil imports come from the United States, with the largest portion being API Group II.
The country’s base oil imports increased in 2020, with the largest spikes in volumes occurring during the second quarter and late last year. Before the COVID-19 pandemic struck last year, Brazil imported volumes of base oil similar to what it produced, but imports rose as domestic output dropped during 2020.