Indian Finished Lubricants Market

Group II Basestocks Witness Increased Usage in the Indian Finished Lubricants Market

India is the third-largest lubricant-consuming market in the world at approximately 2.3 million metric tons in 2015, according to Kline’s estimates. Generally, the Indian finished lubricant market has outpaced global finished lubricant demand growth. Since 2010, the finished lubricant demand growth in India has exceeded the global finished lubricant demand growth, except for 2013, where demand fell marginally in the country. The penetration of higher quality lubricants in India compared to the developed markets, such as North America and Western Europe, is small; however, the market is exhibiting a clear shift towards the use of better quality lubricants and basestocks.

According to Anuj Kumar, Project Manager in Kline’s Energy Practice, “This play toward Group II is eerily similar to the same shift that was seen in developed markets. Government regulations, fuel economy mandates, and lube performance demands by OEMs, coupled with the enticing pricing for Group II (as compared to Group I) has brought about this sense of déjà vu in the market.” Continue reading

Energy Newsweek

Kline will be presenting at the 4th Annual CIS Base Oils and Lubricants Conference in Moscow| May 24-May 26

BOL 300 300 ENGGabriel Tarle, Senior Analyst in Kline’s Energy Practice will present insights concerning the global lubricant additives market at the upcoming CIS Base Oils and Lubricants Conference in Moscow, Russia.

The conference will take place from May 24 to May 26.  Furthermore, if the global lubricant additives market is of interest to you, feel free to review our Global Lubricant Additives: Market Analysis and Opportunities report. Continue reading

Energy Newsweek

Is Your Base Oil Plant Healthy? Kline and SBA Consulting Launch New Base Oil Study

Health check header imageKline, a global market research and management consulting firm specializing in the downstream petroleum and specialties sector, and SBA Consulting, which focuses on global analyses of the base oil market, announced a new joint initiative to analyze the financial performance and survivability for base oil plants with the launch of a client-confidential study called the Base Oil Plant Health Check.Continue reading

Asia-Pacific Finished Lubricants Market

SEVEN ASIA-PACIFIC LUBRICANTS MARKETS YOU NEED TO KNOW ABOUT

Accounting for 44% of the global market, Asia-Pacific is the leading region for finished lubricant demand. Overall finished lubricant demand in the Asia-Pacific region is forecast for modest growth of a CAGR of 1.8% over the next five years. An emphasis on fuel economy and a modern vehicle parc will drive the use of synthetics and other lighter viscosity grade lubricants for passenger car motor oil (PCMO) in the region.Continue reading

Fuel Economy and Stringent Emission Standards are Increasing Demand for Low-viscosity Grade Basestocks

Kline’s October Index of Base Stock Production and Re-refining Cash Margins Shows Declines Due to Lower Postings

In January 2014, Kline, a worldwide consulting and research firm serving needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.

The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries.
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Asia-Pacific Finished Lubricants Market

China Strengthens its Grip, while Malaysia is a Rising Star in the Asia-Pacific Finished Lubricants Market

Accounting for 40% of the global market, Asia-Pacific is the leading region for finished lubricant demand. Emphasis on fuel economy and a modern vehicle parc will drive the use of synthetics and other lighter viscosity grade lubricants for passenger car motor oil (PCMO) in the region. Capitalizing on this shift, China and Malaysia are integral to the strong performance of finished lubricants in the Asia-Pacific region, capturing about 45% of regional demand, according to the soon-to-be-published Global Lubricants: Market Analysis and Assessment report by global market research and management consulting firm, Kline.

In China, synthetic oils have grown at more than 10% annually since 2013. Mobil 1 from ExxonMobil is the best-known full synthetic product in China, and similar products from Shell and BP products are also very popular.Continue reading

Free Webinar - Opportunities in Lubricants: North American Market Analysis - Commercial Automotive

Synthetic Lubricants, a Double-edged Sword Altering the Landscape of the North American Market

The North American lubricants market encompasses a wide range of oils and fluids used in the consumer automotive, commercial automotive, and industrial market segments. The United States dominates the region by a large stretch, distantly followed by Canada, accounting for 9% of the lubricant sales volume and Mexico with an 8% share.

This is second only to the Asia-Pacific market, which is moving towards synthetics and other low viscosity grade lubricants as the vehicle parc expansion in the region creates such demand. Passenger car motor oil (PCMO) is the leading product category in North America, accounting for over 25% of the total lubricants market. Process oil and heavy-duty motor oil (HDMO) follow with 17% and 16% shares, respectively, in 2014. Recommendations from original equipment manufacturers (OEMs) and consumers extending oil drain intervals enable a greater use of synthetics.Continue reading

Despite High Demand for Two-wheelers, Emerging Technologies May Impact Lubricant Consumption in the Future

Despite High Demand for Two-wheelers, Emerging Technologies May Impact Lubricant Consumption in the Future

The global two-wheeler market, which includes motorcycles, scooters, and mopeds, is expected to reach over 700 million units by 2021. This is a high-growth market segment, increasing at a rate of 8% per annum. Rising economic conditions, lack of public transportation, poor road infrastructure, high fuel efficiency/ mileage, lower emissions, and growth in the young population are the leading drivers for this significant uptick in demand. As a result of these trends, countries like Brazil, India, and Vietnam are at the forefront of driving demand for two-wheelers.  However, as electric two-wheelers gain prominence in Southeast Asian countries, lubricant demand growth may be subdued. Continue reading

Finished Lubricant Distributors

All Roads Lead to Synthetics on the Global Lubricants Market

Low viscosity SAE 0W-XX passenger car motor oil (PCMO) accounted for under 5% of the total global PCMO demand in 2014. This grade is forecast to increase to over 7% by 2023, according to the recently released LubesNet Database.

Moreover, 5W-XX and 0W-XX combined account for about 40% of the total global PCMO market in 2014, according to the latest Global Lubricants: Market Analysis and Assessment report. The continuing global migration to lower viscosity grade PCMO will result in higher penetration of synthetics, semi-synthetics, higher revenues, and, conversely, longer oil drain intervals and suppressed overall PCMO growth.

The increasing demand for lower viscosity PCMO is driven by its ability to improve fuel economy; and original equipment manufacturers (OEMs) recommending these oils to maximize performance and converting their factory and service fill requirements to these low viscosity grade products. In the past, 0Ws would only be found in high performance sports cars and ultra luxury vehicles. Today, a base model Toyota Corolla leaves the factory with 0W-20 in its crankcase. Additionally, the forward-thinking GF-6 product specification upgrade planned in the 2017/18 timeframe will create the technical demand for these lower viscosity grade products.Continue reading