Published 18th September, 2014
Analysts predict China's lube consumption could increase dramatically in the near future
China, already the world's second largest lubricants consumer behind the US, accounts for a significant portion of global lubes demand. With the nation's construction and auto sectors continuing to grow, demand could double within the next six years according to China's National Bureau of Statistics.
Lubricants industrial consumables properties require regular supplement, add or replace, the demand and the development of China's manufacturing industry is closely related. China is now the world's second largest lubricant consumer, and growing rapidly. Many international brands because China's huge market and broad prospects for development, have entered the Chinese market, Shell, Mobil, bp, Castrol and other foreign brands, with its technology and brand, forming a pattern of dominating the Chinese lubricant market. However, the Kunlun Mountains, the Great Wall, reunification has become a national brand consumers keen to select brands.
Analysts pointed out that in 2000 the industrial added value for our 40,033.59 billion in 2012 has reached 199,670.66 yuan, to promote the development of industrial manufacturing of lubricating oil demand continued to grow in 2000 to 3.344 million tons of lubricating oil demand in 2011 reached 6.8 million tons, a record high, after the extent of the domestic manufacturing industry downturn deepens, the oil industry as a barometer of consumer demand in the economy fell significantly, in 2013 domestic oil demand fell to 5,814,800 tons.
Intense competition in the domestic oil market. Before the 1990s, domestic oil production and sales of unified deployment by the state, for a monopoly market structure. With the advance of energy reform, lubricants become one of the earlier release of the petrochemical sub-sector, private oil companies from small to large, showing a good momentum of development, in 2013 the domestic market share of 26 %. According to statistics, the current size of the domestic oil companies about more than 2000, the number of SMEs, small-scale, anti-risk ability, price wars become a common means of competition, fierce competition in the industry. Meanwhile, foreign oil companies with leading technology and comprehensive strength, occupy a favorable position in the competition, local national oil companies import substitution arduous task.
National lubricants consumption was 3.34m tons in 2000 and more than doubled to 7.1m tons, an historic high, by 2011 thanks to rapid industrialisation and unprecedented manufacturing growth.
According to analysts, lubes demand across Asia will rise to 15.5m tons by 2020, with China's national demand potentially doubling and even exceeding that of the US.