Brazil Base Oil Output Jumped in 2021

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Brazil Base Oil Output Jumped in 2021

Although Brazil’s base oil production was off nearly 15% in December, compared to the same month in 2020, production for the full year was more than 20% higher than in 2020, according to recently released government data.

Base oil plants in Brazil produced 548,000 tons of base stocks during 2021, a 23% jump from 446,000 tons in 2020 and just ahead of the 547,000 tons produced in 2019, according to the government data.

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The National Agency of Petroleum, Natural Gas and Biofuels, ANP, reported that the plants produced 43,000 tons of base stocks in December, 14% less than in the same month in 2020 and down 19% from 53,000 tons in December 2019.

The country’s base oil production reached 44,000 tons or more each month from January through April. Production totals from February through October each month bettered year-earlier results by 11% to 200%, with the highest increase occurring in February when production reached 47,000 tons. Other notable percentage increases occurred in April, at 65%, and June, at 68%. Base oil production in Brazil twice reached 50,000 tons or more in August (50,000 tons) and in October, when it reached a high for the year of 57,000 tons.

The South American country’s low points for monthly base oil production occurred in May, with 39,000 tons, and June, when it reached its low point of 38,000 tons. Prior to December, the only months where base oil production fell below the same month in 2020 were January, with its 18% decrease, and November, when production was down by 2%.

Before the COVID-19 pandemic, Brazil was importing amounts of base oil similar to what it produced, but while domestic output dropped during 2020, imports of base oils increased that year, 12% ahead of 2019’s total. In 2021, the country imported 998,000 tons of base oil, a jump of 30% from 766,000 tons in 2020.

The monthly data in 2021 showed huge year-over-year increases, especially early last year. February’s total of 138,000 tons was up 200% from the same month in 2020, and March’s total of 135,000 tons was up by 198%.

By late last year, the base oil import picture had changed. In December, base oil imports dropped 60% to 29,000 tons – the lowest monthly import volume in 2021 – and the 92,000 tons imported in November was down 29% from the same month in 2020.

Most of the base oil that Brazil imports comes from the United States, and most of that is API Group II. Almost all of Brazil’s domestically produced base oil is Group I.

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