Demand for high-quality, energy efficient industrial lubricants is increasing in China
Although China's manufacturing sector is showing signs of a slowdown, demand for industrial lubricants over the last decade has been robust, according to a new report from Research and Markets.
The report predicts steady growth and demand for high-end industrial lubes over the next decade through to 2024, especially amongst China's oil majors CNPC, Sinopec and CNOOC.
While the region is home to more than 3,000 independent producers, China's state-owned giants are in a strong position to capitalise on growing demand for high-end products and are now being incentivised to produce cleaner, more efficient lubricants.
Meanwhile, data from BP's Global Statisical Review, published in June this year, shows China's oil consumption growth slowed to just 2.6% last year, the lowest rate since 1998, although this is still far ahead of shrinking OECD demand which ran at 0.9% during the same period.
The data also show China's coal consumption increased by just 0.1% in the region, with production actually falling by 2.6% over the past year. China, which has historically driven global coal consumption and production, is refocusing its efforts on clean energy and reducing pollution which, in turn, will lead to a greater prevalence of cleaner lubricants in industry.