Demand is increasing for metalworking fluid products, according to Kline.
A smooth increase Image: Clariant |
The recovery of the automotive industry following the global economic crisis has led to improved demand in metalworking fluids. Revenue from the sector is expected to grow in higher quality products such as synthetics, semi-synthetics/synthetic blends and water-soluble fluids.
The recent study by global analysts, Kline, indicates that metalworking fluids currently account for approximately 6% of the total estimated 38m ton global lubricants market.
Asia (primarily China, India, South Korea, Indonesia, Thailand and Japan Russia and Brazil are expected to be the growth engines of the sector in the near future.
Half the market is served by small independent fluid producers focused on particular end-use applications, geographic area or both, although there is likely to be consolidation through acquisition by larger players. Even at the top end of the market, the value of the metalworking sector has attracted global deals, such as sector leader Houghton's $1bn sale to India's Hinduja Group after Houghton itself had previously purchased Shell's operations.