The demand for lubricating oil in China doubled in 2020

Lubricant oil has the properties of industrial consumables, and it needs to be supplemented, filling or replaced regularly, and its demand is closely related to the development of industrial manufacturing industry in our country. China is now the world's second largest consumer of lubricants, and it is growing rapidly. Because of China's huge market and broad development prospects, many international brands have entered the Chinese market, Shell, Mobil, bp, Castrol and other foreign first-tier brands, with their technology and brand advantages, formed a dominant pattern in the Chinese lubricant market. However, ethnic brands such as Kunlun, Great Wall and Uni-President have also become popular choices for consumers.

Industry analysts point out that the added value of industry in China was 40,3359 million yuan in 2000, and has reached 199,670.66 million yuan in 2012. The development of industrial manufacturing industry promotes the continuous growth of the demand for lubricating oil in China. The demand for lubricating oil in China was 3.344 million tons in 2000, and 6.8 million tons in 2011, reaching a record high. Since then, the downturn of domestic industrial manufacturing industry has deepened, and the consumption demand of lubricating oil industry, as an economic barometer, has dropped significantly. In 2013, the domestic demand for lubricating oil dropped to 5,814,800 tons.

Domestic lubricating oil market competition is fierce. Before the 1990s, the production and sales of domestic lubricants were uniformly distributed by the state, which was a monopoly market structure. With the promotion of energy system reform, lubricating oil has become one of the earlier petrochemical sub-industries to be released. Private lubricating oil enterprises have developed from scratch to large, showing a good development trend. In 2013, the domestic market share reached 26%. According to statistics, at present, there are about 2000 domestic large and small lubricating oil enterprises, the number of small and medium-sized enterprises, small scale, poor risk resistance ability, price war has become a common means of competition, industry competition is fierce. At the same time, foreign lubricating oil companies with leading technology and comprehensive strength, occupy a favorable position in the competition, the local national lubricating oil enterprises import substitution task is difficult.

It is shown that the construction of major projects identified in China's 12th Five-Year Plan will continue to drive the rigid demand of construction machinery manufacturing, transportation, logistics and transportation industries. Domestic demand and infrastructure investment will provide a huge consumer market for the lubricant industry. At the same time, the domestic automobile rigid demand environment and potential is still in, which will also largely pull the demand of the automobile lubricating oil market. China alone will account for 40 percent of the 15.5 million tons of lube oil demand in the Asia-Pacific region over the next 10 years. By 2020, the demand for lubricants in the Chinese market will double and the consumption will likely surpass that of the United States. And in the development process of lubricating oil industry in the future, in line with the development trend of energy-saving, efficient and high-end internal combustion engine oil, it is necessary to constantly study and use high-performance base oil and high-quality additives, so as to meet the needs of the development of high-quality internal combustion engine.