Global Brightstock Market Recovery After the Shock of 2020

Will the Global Brightstock Market Recover After the Shock of 2020?  

The global basestock market felt a colossal impact on demand and supply as a result of the COVID-19 outbreak, and brightstocks were no different. Per Kline’s analysis, the brightstock demand declined by approximately 7.5% in 2020 compared to the demand registered in 2019. While the global market was impacted by demand shock during the initial period of COVID-19, the latter phase witnessed supply shock as well, since brightstock supply was in deficit. This was a result of low basestock production, especially for Group I (including brightstocks), because of unfavorable refinery economics. Due to low fuel demand caused by pandemic-related restrictions, margins for fuel have declined considerably. As a result, refiners are not able to cash in on the current high margin regime for brightstocks, as their run rates are impacted due to constraints on the fuel side of operations. 

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Marine lubricants suppliers

Market Developments Leading to Increased Entry Barriers for Marine Lubricants Industry Suppliers

The shipping industry faced two critical issues in 2020: the ongoing COVID-19 pandemic and implementation of International Maritime Organization (IMO) 2020 0.5% sulfur fuel norms, also known as IMO 2020. IMO 2020 led to operational challenges related to very low sulfur fuel oil (VLSFO) or 0.5% sulfur fuel usage for shipping companies. COVID-19 also led to some unique operational and economic challenges, including reduced on-board and onshore support and closed ports, plus a decline in international trade. Lastly, upcoming regulations related to maritime decarbonization present new challenges to the shipping industry.

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OEM FWC PCMO Demand Growth

Increased OEM Attention May Drive Greater PCMO Demand to the Franchised Workshop Channel Globally

The original equipment manufacturer (OEM) franchised workshop (FWS) channel accounted for nearly a quarter of global PCMO demand in 2020 and is projected to grow at a faster pace than the overall PCMO market.  Asia-Pacific leads in volume, while Europe leads in channel market share. The growth in the OEM FWS channel compared to otherssuch as the independent workshop (IWS) and local garage channelis due to greater investment by OEMs and their dealers in retaining customers for aftersales service, as well as changing consumer preferences.   Continue reading

factors impacting HDMO demand

Factors Impacting HDMO Demand

The launch of the newly redesigned, on-highway Model 579, class 8 tractor by Peterbilt Motors Company inspired Kline to make some observations about the HDMO market, and we would like to share them in our new series, Kline Energy Reflections Under a Minute. In it, we’ll offer our reflections on the most current news and what’s been trending around the world in our industry. Continue reading

Lubenets 2021 release

How LubesNet Evolved into the Data Tool of Tomorrow 

The latest release of Kline’s LubesNet database, on January 27, 2021, marked a significant milestone in its history15 consecutive years of offering market data and insight into the global finished automotive and industrial lubricants industry. LubesNet presents, through a userfriendly and intuitive platformglobal, regional, country market, market segment, product type, and viscosity grade lubricants demand data featuring a fiveyear historical view, 2020 base year view, and two forecast year views. This latest release includes Kline’s assessment of the impact of COVID-19 by country market with a comparison to 2019 demand, plus Kline’s forecast for recovery as markets emerge from lockdowns and economic activity returns to pre-pandemic levels.  

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rubber process oil industry expects a recovery

Rubber Process Oil Market Growth Expected to Recover to Pre-COVID-19 Levels by 2022

The COVID-19 pandemic significantly impacted global demand for rubber process oil (RPO) in 2020It is estimated that RPO demand declined approximately 15%, reaching about 2,750 KT in 2020. This represents a considerable improvement compared with earlier forecasts. 

In mid-2020, RPO demand was estimated to decline approximately 20%-25%  better than expected. This was due to the strong recovery in rubber and tire production in Asia during the second half of 2020, especially in China, where tire production declined only 3% in 2020. Moreover, the slight growth in rubber demand in China – which is the largest market for the product globally – was spurred by the healthcare industry in 2020.

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HDMO sales channels in China

Recovery in Chinese HDMO Market to be Accompanied by Changes in the Sales Channel Landscape

Prior to the outbreak of COVID-19, heavy-duty motor oil (HDMO) demand in the truck and construction vehicles categories was growing due to the booming logistics industry and significant investments in the construction industry. However, the 2020 COVID-19induced lockdown in China has severely affected demand for HDMO in the trucks category due to restrictions in the movement of goods as well as reduced demand.  Despite a significant drop in demand for China’s service-fill HDMO in the truck categorydemand for engine oils is expected to recover, albeit partially, driven by growth in truck sales and population.  

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top trend rising from COVID 19

A Trend a Day This December — Enjoy Kline’s 2020 Countdown Calendar

During 2020, virtually every industry and every aspect of how we live, work, and communicate was thrown into disarray due to the COVID-19 pandemic. The necessity to respond to the global crisis with tech-savvy, relevant, and timely solutions was a catalyst that sparked the rapid development and implementation of evolutionary trends on a scale we’ve never seen before.

With 2020 almost over, we want to part with it on a positive note by reflecting on these progressive, dynamic trends and how they will come together to help us “rebuild better” post-COVID-19.Continue reading