US dominates base oils exports to Brazil with around 75% market share

RIO DE JANEIRO (ICIS)–The US remains the largest exporter to the Brazilian base oils market, with the country’s lead widening in 2024, according to an expert on Tuesday.

Pedro Nelson, editor-in-chief of the Brazilian specialized magazine Lubes em Foco, said Brazil deficit in base oils is set to continue for years to come due to the lack of homegrown supply.

Lubes em Foco is the organizer of the 14th International Summit with the South American Market 2024, which focuses on base oils. ICIS is a partner in the event.

In 2023, Brazil imported basic base oils worth $851 million, said Nelson, totaling 775,084 cubic meters (cbm).

Of those, the US was the origin of 72.4% of all Brazil’s imports. Second on the list but well behind was South Korea, with 4.9%.

Malaysia (4.7%), India (3.8%), Qatar (3.4%), Bahrein (3.3%), Singapore (1.9%) and Taiwan (1.0%, all of it coming from producer Formosa) complete the list of countries with over 1% of market share in the Brazilian import market for basic base oils.

2024: THE US INCREASES LEAD
The US dominance in the market share of Brazil’s imports basic base oil is widening in 2024. According to Nelson, in the January-May period the US captured 76.2% of market share, followed by Malaysia (5.0%) and South Korea (3.5%).

In the five-month period, Brazil imported basic base oils worth $372.4 million, said Nelson.

“Brazil is likely to remain a net importer of base oils for years to come due to the country’s lack of capacity to produce them. The US is set to continue benefit also for years to come due geography,” he added.

Despite is trade deficit in base oils, Brazil also exported 79,583 cbm of lubricants in 2023, worth $200.3 million, mostly to neighboring countries Paraguay, Argentina and Bolivia.

Not surprisingly, Brazil’s southeast region was the highest consumer of base oils in 2023, with 44.8% of market share. That region includes the most industrialized states of Sao Paulo, Rio de Janeiro and Minas Gerais.

Base oils, also called lubricants, are used to produce finished lubes and greases for automobiles and other machinery.

The 14th International Summit with the South American Market 2024 runs in Rio de Janeiro on 2-3 July.