Volume 8 Issue 9
China’s lube demand is projected to grow about 3% to 8.2 million tons in 2021, boosted by demand stemming from new infrastructure projects, according to Chinese research firm Oilchem. The growth rate would be higher but will be dampened by the spread of electric vehicles across the country and by the rising quality of engine oil used in the market, said another analyst, industry consultant Zhang Chenhui.
South Korean base oil refiners GS Caltex and Hyundai Shell Base Oil both reported sharply higher operating profit for the fourth quarter of 2020, while net profit was down for Thai Oil Group’s base oil business. The Korean refiners sold less base oil but benefited from fatter margins.
German lubricant Zeller+Gmelin said this week that it is expanding in China, relocating into a larger factory after agreeing to buy out its joint venture partner in the country. The lubricant and chemical company, which is based in Eislingen, Germany, said it is taking the actions in order to meet growing sales demand and to accommodate changes in local regulations.