Tight market conditions in Asia continue to dominate discussions, with spot prices reported as stable on account of a lack of readily available cargoes. - by Gabriela Wheeler
Up to 30 percent of passenger car motor oils supplied in China in 2022 may reach drivers through the countrys unique routes to market, according to a recent Kline & Co. report.
It is no secret that building an extensive sales network is essential for achieving significant sales in China, a massive yet highly fragmented market. However, is such a network enough? The answer probably is no for many Chinese lube suppliers, especially small and medium-sized ones.
Local government in Tianjin, China, suspended port traffic following Wednesdays deadly warehouse explosions at the northeast China industrial zone, which is the busiest base oil port in Northeast Asia and a prominent lubricants supply hub.
WeChat has been an effective tool to boost sales in Chinas changing lubricants market - especially among younger customers - for one lube distributor in Chengdu, Sichuan province, a company official said at an event earlier this week in Xian, Shaanxi province.
As China's lubricant market becomes more crowded, some suppliers - including both oil manufacturer marketers and distributors - are seeking new ways to gain market share.
Lubricant suppliers say branded workshops are critical in Indonesia's aftermarket segment, which is growing as the country's automobile parc ages and warranties expire.
China imported 10.5 percent more base stocks in 2016, totaling 2.8 million metric tons. Exports increased by 54 percent, to 46,920 tons, in the first year since rules on exporting base oils were relaxed.
Regional dealers are widely viewed as key cogs for producers seeking timely headway in Chinas vast lubricant market. As the landscape becomes more competitive, though, dealers are becoming increasingly choosy, wary and sometimes confused.
Indonesias state-owned PT Pertamina Lubricants began using Thailand as a launching point for expansion in China and Indochina. It also recently forayed into Egypt and announced plans to explore opportunities in Africa, the South Pacific, the Indian subcontinent and other regions.