Trends & Studies
China produces quite a bit of white oils, but niche applications such as rubber seals require high-quality plasticizers formulated with hydrocracked white oils, which often must come from foreign sources.
Southeast Asian sales of automobiles, motorcycles and scooters rose moderately in 2013, as the regions population of motorized four- and two-wheelers continued to increase. Production of four- and two-wheelers also rose, according to the ASEAN Automotive Federation.
The bazaar may be an ancient part of commerce in India, but the countrys lubricant industry appears to be discovering it once again. Insiders say suppliers are relying increasingly on bazaar channels such as retail outlets, OEM-authorized service centers and transport nagars.
Diesel engine oils are the largest category of automotive lubricants in India, and they are evolving quickly. A Gulf Oil official said recently that the segment is shifting toward products that last longer, provide better fuel economy and that are compatible with emissions control technologies.
Australia might be known as the land of opportunity, and its lubricant market has attractions, but it also has risks for lube suppliers.
Asia-Pacifics energy demand in 2040 will jump 61 percent from what it was in 2010, according to a recent ExxonMobil report.
The market for lubricants for two-wheelers in India is undergoing refinement as suppliers launch engine oils formulated specifically for scooters.
Global base oil refining capacity has climbed above 57 million metric tons a year, according to the new 2018 Global Guide to Base Oil Refining from LubesnGreases. Asia-Pacific controls 42 percent of this supply and has more on the way.
Indias tractor market is the worlds largest, and some analysts say it will continue expanding at healthy rates for the foreseeable future, bringing tractor lube demand along with it.
With some predicting lubricant consumption in Indonesia will continue to decline, suppliers are vying to grab sales volume by introducing niche 10W engine oils for four-wheel vehicles.