Legal & Regulatory
U.S. suppliers of lubricants, lube additives and base oils are hoping that their government and China avoid an impending trade war but preparing to cope with Chinese tariffs on imports in case they dont.
Shares of lubricant additives supplier Tianhe Chemicals Group resumed trading on the Hong Kong Stock Exchange Thursday after a month-long suspension triggered by an accusation that its June initial public offering was a fraud.
Shandong province aims by 2020 to replace all local diesel vehicles that dont comply with emissions standards newer than China 3 - which was adopted in 2005 - according to a policy issued Feb. 9.
The trade war between China and the United States is on, and the lubricants industry is caught up in it, along with many others. Analysts say some companies are affected more than others, and that many are trying to navigate the new seascape in order to minimize financial impacts.
A draft list of substances that will require registration under South Koreas looming new chemical safety regulation includes a number of chemicals used by the lubricants industry, from various amines to metalworking fluid biocides and other lube components.
A looming free-trade agreement could boost South Korean base oil exports to China, according to industry analysts. South Korea is already one of Chinas largest sources of base oil imports, and the new pact could help South Korea move past or solidify its ranking ahead of Singapore.
Worldwide, more than 12,000 engine oil products are licensed to display the American Petroleum Institutes service mark, known as the donut, and the institutes starburst certification mark. And every one of these licenses is going to expire if it is not renewed promptly between Jan. 1 and March 31, 2015, Kevin Ferrick of API reminded recently.
The new year marked the implementation in China of higher gasoline quality standards designed to help reduce air pollution. One observer warns that automobile air emissions levels will continue rising for now but called the standard an important step toward eventually addressing the problem.
The Indian state of Uttar Pradesh has effectively imposed a steep tax hike on lubricants by removing them from the list of items subject to its value added tax. Blenders warn that the move will lead to closure of manufacturing plants in the countrys most populous state.
Tianhe Chemicals has been suspended from the Hong Kong Stock Exchange after Anonymous Analytics accused it last week of fraud.