U.S. lubricant sales for the second quarter of 2003 were 8 percent lower than the same period of 2002, according to the latest Quarterly Lubricant Sales Survey from the National Petrochemical and Refiners Association.
The report, released by the association Oct. 1, showed second-quarter demand for automotive lubes falling 7.3 percent, year-to-year, while the industrial segment slid 9 percent. Grease sales were off by 9.5 percent.
Such results are especiallygrim given the fact that the second quarter of 2002 was also a difficult period for the lubricant market, posting a 2.2 percent drop in sales from the same period of 2001.
The survey results for this years second quarter come as no surprise, as many in the market have complained about business dragging this year. German lubricant company Fuchs Petrolub AG issued an even gloomier assessment in August, estimating that lube sales in the United States were down 9.5 percent for the first half of the year. The NPRA survey – which actually showed a 1.8 percent increase in demand for the first quarter – stated that sales for the first six months were down just 3.2 percent.
The survey also included data from the U.S. Department of Energy showing a 12.2 percent decline in base oil production during the second quarter. Paraffinic production dropped 8.9 percent to12 million barrels, while naphthenic volume fell a whopping 25.7 percent to 2.4 million barrels. The base oil market has been beset by a number of supply disruptions this year, including maintenance turnarounds at three refineries, power outages, operational problems at ExxonMobils Baytown, Texas, plant and the closing of two base oil plants by Shell.
Survey results are based on responses from lube suppliers representing more than 75 percent of the volumes covered by the associations more comprehensive annual report on lubricating oil sales. Rather than an accurate estimate of the actual size of the market, the quarterly surveys are meant to gauge sales trends.