France Lube Demand Slips


France Lube Demand Slips

Lubricant consumption in France decreased 8% to 44,086 metric tons in April, compared to the same month last year, according to data released on Saturday by the Paris-based Professional Lubricants Center.

Automotive lubes consumption slipped 5% to 25,322 in April.

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Passenger car engine oil demand decreased 1% to 14,040 tons in April, while sales of engine oils used in commercial diesel vehicles dropped 11% to 4,617 tons. Automotive transmission sales fell 13% to 805 tons, and demand for automotive greases slipped 25% to 371 tons.

Demand for industrial lubricants – not including process oils – declined 11% to 13,665 tons.

Hydraulic transmission oils consumption decreased 6% to 5,744 tons, although within that category, non-flammable hydraulic transmission oils demand jumped 35% to 338 tons. Industrial greases consumption fell 11% to 1,115 tons, non-soluble metalworking fluids slipped 17% to 1,224 tons, soluble metalworking fluids plummeted 40% to 956 tons and turbine oil consumption dropped 29% to 219 tons. On the growth side, compressor oil demand rose 24% to 276 tons.

Process oil consumption fell 16% to 5,099 tons.

In its macroeconomic projections for June, the Bank of France discussed the first-quarter results and second-quarter projections for the country’s economy. In the first quarter, gross domestic product inched down by 0.2%, reflecting a 1.5% decline in household consumption and weaker-than-expected exports, the bank noted. In the second quarter, according to short-term data from the bank’s business surveys, GDP is expected to grow by about a quarter of a percentage point.

The bank noted that in France certain services sectors – especially accommodation and food services – are benefiting from the lifting of the last pandemic-related restrictions and the recovery of tourism, including foreign tourism. “In contrast, industrial activity and construction are being adversely affected by supply disruptions and rising production costs,” the Bank of France said. “Activity is expected to remain moderate over the second half of 2022, reflecting the adverse effects of higher energy and food commodity prices and developments in the global economy.”