Japans lubricant demand is expected to fall by 1.4 percent to 1.4 million metric tons, according to a recent press release by the Petroleum Association of Japan.
The association predicts that automotive lubricant demand will drop 0.3 percent to 531,000 tons, due to an aging population adversely affecting demand for motor vehicles.
Industrial lubricant demand is projected to decrease 2.1 percent to 802,000 tons. Due to a slowdown in individual consumption and the economies of China and other developing countries, growth in industrial production is expected to remain soft, said the association in its press release.
Demand for marine lubricant is expected to fall 2.3 percent to almost 76,000 tons. According to the Association, construction of new ships and domestic shipping is unlikely to recover. The impact to [new sea vessel construction] due to stricter IMO regulations in 2020 is expected to be limited because existing ships can comply with alternative fuels and exhaust gas cleaning systems or scrubbers, it added.
Last years lubricant demand increased 10.8 percent to 1.43 million tons. Consumption of Industrial lubricants jumped 12 percent to 819,000 tons, marine lubricants increased 11 percent to 77,000 tons, and automotive lubricants increased 8.6 percent to 532,000 tons. Japans industrial production index jumped from 101.4 in January to 104.7 in December, 2018.