Sergio Rebelo addresses the audience at the 12th ICIS Pan American Base Oils & Lubricants Conference

South American Finished Lubricants Market: Time for Rebuilding

In a presentation at the ICIS Pan-American Conference held in December 2016, Sergio Rebelo, Managing Director in Kline’s South America affiliate, Factor, discussed the struggles and opportunities of the South American finished lubricants market.

South America has a population of 419 million and a continental GDP of USD 3.6 trillion, roughly 5% of the global total. The top countries in terms of GDP are Brazil, Argentina, and Colombia. Nonetheless, the region is undoubtedly experiencing a challenging economic climate. Projected growth has been cut in half since 2010 and is forecast to grow 2.5% per annum until 2020.Continue reading

The Global Business Outlook for Brightstocks

Brightstock Alternatives Will Gain Ground as the Market Anticipates a Deficit of over 6.0 KBD

The brightstocks market faces dwindling Group I supplies. In its recently published report,  The Global Business Outlook for Brightstocks, global market research and management consulting firm Kline estimates that, even with limited new capacity additions, the market will experience a potential deficit of at least 6.0 KBD by 2025. Although there will be loss in demand for brightstocks from automotive engine oils due to the shift towards multigrade oils, that alone cannot compensate for the declining supply. Blending requirements for marine and other heavy industrial lubricants continue to expand demand for brightstocks, a critical component for these applications. Spotting an opportunity, a few brightstock suppliers have undertaken capacity expansion projects that will address some of the growing deficit.Continue reading