Lubricant consumption in China is positive for the first time in five years

China's oil imports amounted to 345,500 tons last year, and exports amounted to 99,700 tons. China's apparent consumption amounted to 6,415,800 tons, an increase of 5.4% year-on-year, and achieved the first positive growth in the past five years.

Lubricating oil is the main indicator of the economic barometer. In developed countries, the ratio of lubricating oil consumption to GDP is relatively at a relatively reasonable level. However, as a developing country, China's lubricating oil consumption and GDP ratio are relatively unbalanced. With the upgrading of oil quality, the extension of oil change intervals, and the improvement of management level and equipment, the consumption intensity of lubricants in China will continue to decline in the future, tend to be the world average, and will continue to approach the level of developed countries.

According to data released by the Industry Research Institute of Forward-looking Industry, the report of the Lubricants Industry Market Demand Forecasting and Investment Strategic Planning Report shows that domestic lubricant production in 2016 increased by 6.14% year-on-year to 6.17 million tons. In 2016, China's import of lubricants was 345,500 tons, and its export volume was 99,700 tons. China's apparent consumption amounted to 6,415,800 tons, an increase of 5.4% year-on-year, achieving the first positive growth in the past five years.

As the industrial growth rate declines, the growth rates of automotive and industrial oils have divided. In 2016, the demand for automotive lubricants was mainly increased, and industrial lubricants were affected by the slowdown in the growth rate of the real economy. Demand and the proportion of lubricants gradually decreased.

With the sustained and rapid economic and social development in China, the number of car ownership has maintained rapid growth. According to the latest data, as of the end of June 2017, the country’s vehicle ownership reached 205 million vehicles, 49 cities in the country had more than 1 million vehicles, 2 cities exceeded 2 million in 23 cities, and 3 cities exceeded 3 million in 6 cities. It can be seen that there is still a huge room for growth in the field of automotive lubricants in China.

At present, although new energy vehicles will become the main trend in the future, the total number of new energy vehicles as a whole is relatively small, accounting for a relatively small amount, and the overall impact on lubricants is not too great. The country vigorously promotes electric vehicles (electric vehicles have no engine, and the demand for gasoline engine oil is 0), and the impact of new energy vehicles can be temporarily ignored.

Since 2010, the effect of large-scale investment and further stimulation of growth has become increasingly apparent. This has led to a decline in the growth of manufacturing, mining, and infrastructure, and a decline in the consumption of industrial lubricants. In 2016, consumption was 2,121,500 tons. Continuing the status quo in the future may be the best result.

Relative to domestic lubricants manufacturers may be only good at home and replace the current cost of the main oil companies to increase awareness of the cost, the future use of domestic industrial oil market is huge.

With the rapid development of China's economy, China's lubricant industry has experienced an outbreak in the past decade, and gradually formed a three-echelon competition team of multinational oil companies, central state oil companies, and private lubricant companies. Multinational oil companies have an early layout in the domestic market and are in a leading position in the retail terminal market. The central government oil companies have considerable scale and resource advantages. They have mature experience and strength in seizing group customers and cutting-edge applications. Sinopec Great Wall Lubricants Company Public Information It shows that it has obtained technical certification from more than 95% of automakers in China, and has occupied more than 50% of the market share of car-loading and service oil in China. Privately-owned lubricant companies mainly rely on local markets to gradually expand market channels and form stable competition. power.

In general, the threshold for entry of the lubricant industry is not high. In the high-speed development stage of the market, there are various types of speculative lubricant manufacturers with poor management and unsafe quality. They rely on low-cost counterfeiting to disrupt the market order and compete for survival space. According to incomplete statistics from the Industrial Development Research Institute, there are still more than 2,000 existing lubricants manufacturers in China.

With the ever-increasing competition in the lubricants industry, domestic excellent lubricant companies have paid more and more attention to the research of the industry market, especially the in-depth study of the changes in the company's development environment and customer demand trends.

Therefore, the "Report on the Forecast of Market Demand and Investment Strategic Planning for the Lubricant Industry" released by the Industry Research Institute of the Forward-looking Industry provides an in-depth analysis of the development status, market potential, and future development trends of the lubricant industry. We will provide professional guidance based on your current situation and provide solutions so that relevant decision makers can make correct competition and investment strategies.