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The economic rollercoaster ride of the past three years has generated a debate on the nature of lubricant demand and its growth in context of economic growth. Does lubricant demand growth track GDP growth rate? Can we define a relation between GDP growth and lubricant growth? Has the lubricant market grown at all in the last 10 to 15 years?
The dominant trend in the lubricant basestocks industry has been the decline in supply of Group I basestocks due to technical obsolescence as well as over-supply of higher performance Group II and Group III basestocks. Group I basestocks can no longer be used to blend high-performance and mid-tier passenger car motor oils (PCMO) and heavy
Besides Asia, Africa and the Middle East were the only regions which did not stop growing during the recession. Although their economic growth rates did slow down by 2009, they have since started to pick up again. Despite the fact that AME will not see growth rates commensurate to those of the rapidly expanding markets
Of the 63 thousand barrels of lubricant basestocks consumed in the AME region every day, almost 90% are Group I basestocks. The region’s demand for higher performance Group II and III basestocks is small, but growing, especially in the Middle East. This is due to
The finished lubricant markets of Africa and the Middle East are traditionally overshadowed by other markets, more notable for their large size, rapid growth or high quality levels. However, the AME region boasts attractive country markets of its own, with high growth potential and quality lubricant output.
