The COVID-19 pandemic will reduce global demand volumes for general industrial oils and greases by 13% this year, consultancy Kline & Co. forecasted during a webinar Wednesday.
The firm estimates that demand for those products – hydraulic fluids, industrial gear oils, turbine and circulating oils, compressor and refrigeration oils, and greases – will grow at a compound annual rate of 3% from 2021 through 2024 but not return to the 2019 level within that time period.
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Lubricant markets have been disrupted by economic lockdown measures imposed to contain the virus, and the impact was amplified by the staggered timing of such measures in different regions, David Tsui, a project manager in Kline’s energy practice, said during the online event. “For instance, China was shut down first, then followed by Europe. The way it spread out, it dragged out the overall shutdown.”