Global Lubricant Basestocks: Market Analysis and Opportunities

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

The improving quality of finished lubricants and the burgeoning supply of high quality basestocks continue to create greater pressure on Group I basestocks to exit the market in the face of stagnant overall demand. In 2015, Group I basestocks account for less than half of the global basestock demand, down from over two-thirds a decade earlier, according to the recently published Global Lubricant Basestocks: Market Analysis and Opportunities report.

Passenger car motor oils formulation changes are driven by improvements in fuel economy, increasing engine oil durability, and maintaining compatibility with emission control devices and biofuels. The high viscosity index, low volatility, and low sulfur content has resulted in the reduced use of Group I and increased use of Group II and Group III.  Continue reading

Global Lubricant Basestocks: Market Analysis and Opportunities

The Need for Fuel Economy and Stringent Emission Norms is Increasing Demand for Low-viscosity Grade Basestocks

In 2014, global demand for finished lubricants is estimated at 39.4 million tons, a marginal decline from 2013. Automotive lubricants account for over 50% of the total demand, with industrial products and greases accounting for the balance. Asia-Pacific is the largest lubricant-consuming region, accounting for over 40% of global demand, compared to North America, which accounts for just 22%.

Passenger car motor oils (PCMO) are defined by their quality specifications, viscosity, and, from a labeling point of view, the basestocks used to blend the product.Continue reading