Lukoil established a lubricant subsidiary in China as part of its expansion in the Asia-Pacific region. It opened an office in the northwestern city of Urumqi and plans to open another in Shanghai.
Indias lube suppliers have long relied on local storage hubs for most sales across the country, but at least some are set to begin consolidating depots to central, strategic locations as the new Goods and Services Tax system no longer favors local sales, said an industry observer.
Tight market conditions in Asia continue to dominate discussions, with spot prices reported as stable on account of a lack of readily available cargoes. - by Gabriela Wheeler
China imported 10.5 percent more base stocks in 2016, totaling 2.8 million metric tons. Exports increased by 54 percent, to 46,920 tons, in the first year since rules on exporting base oils were relaxed.
Lubricant suppliers say branded workshops are critical in Indonesia's aftermarket segment, which is growing as the country's automobile parc ages and warranties expire.
Indonesias Pertamina Lubricants and PT Shell Indonesia have established credit and payment agreements with domestic banks to strengthen distributors cash flow management and to spur sales.
Singaporean lubricant supplier United Oil Co. will not set up a blending plant in Myanmar as the company discussed last year. Instead, it will supply its products there through a recently signed joint operation agreement with local agent Lighthouse Enterprise Ltd.
Chinese blender Qingdao Copton Technology Co. increased earnings by 31 percent on the year in its third quarter and sold one of its subsidiaries, a wholesale API Group I base oil broker, to focus on higher-quality base stocks.
Chinas and Indias car parcs - already two of the worlds largest - will double by 2023, a new study predicts. As lubricants volumes boom, providers must cope with each nations idiosyncrasies to effectively distribute through their aftermarket service channels.
Shun Neng Oil, a lube blender and the China distributor for United States oil marketer Amalie Oil Co., reported big losses in the first half of 2016. In a recent filing the company said it was 2.88 million in the red for the period due to a 25 percent drop in operating income.