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 a 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.
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.
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 others―such as the independent workshop (IWS) and local garage channel―is due to greater investment by OEMs and their dealers in retaining customers for after–sales service, as well as changing consumer preferences. Continue reading
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
The latest release of Kline’s LubesNet database, on January 27, 2021, marked a significant milestone in its history: 15 consecutive years of offering market data and insight into the global finished automotive and industrial lubricants industry. LubesNet presents, through a user–friendly and intuitive platform, global, regional, country market, market segment, product type, and viscosity grade lubricants demand data featuring a five–year 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.
The COVID-19 pandemic significantly impacted global demand for rubber process oil (RPO) in 2020. It 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.
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-19–induced 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 category, demand for engine oils is expected to recover, albeit partially, driven by growth in truck sales and population.
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
This year we have published nearly 50 lubricants country market reports! With the purchase of three and more markets we now offer a free VIDEO summary presentation for the region of your choice. The video includes the impact of Covid-19 on markets, products, and end-use industries.Continue reading