Kyodo Yushi Co. announced last week that it has finished building a synthetic grease plant in Kameyama city in Japans Mie prefecture. While the nations lubricant demand is slowly contracting, Kyodo Yushi said grease demand is rising thanks to the expanding automobile industry.
More than half of all grease produced during 2015 was made in the Asia-Pacific region, according to the National Lubricating Grease Institutes Grease Production Survey Report, which was released last week.
A slowdown in Chinas primary metals industry will squash demand for industrial greases in Asia-Pacific through 2019, Annie Jarquin of Kline & Co. reported at an industry conference in Virginia, United States, last week.
Indian lube suppliers Apar Industries and Balmer Lawrie both recorded strong margins despite weaker revenue, while Chinas GTS Chemical Holdings revenue was on the upswing, all for the quarter-ended March 31.
More than 75 percent of the worlds lubricating grease is thickened with lithium hydroxide or lithium complex soap - but over 90 percent of the grease made each year in India is. Now Indias grease manufacturers say lithium hydroxide has been priced beyond their grasp, as electric cars and consumer electronics devour every available kilogram.
Sinopec said it will start developing lubes and greases for use in high-tech industries such as robotics, high-speed railways, and wind power generation.
The Chinese grease market, the worlds largest, needs to undergo a significant shift in coming years toward high-performance, high-temperature products, industry insiders and analysts say. That presents opportunity and challenge for suppliers.
Balmer Lawrie & Co.s greases and lubricants segment moved from the red to black with its performance for the quarter ended June 30, while Savita Oil Technologies recorded an 88 percent jump in profits.
Local government in Tianjin, China, suspended port traffic following Wednesdays deadly warehouse explosions at the northeast China industrial zone, which is the busiest base oil port in Northeast Asia and a prominent lubricants supply hub.
China was the worlds largest producer of grease in 2014, according to data provided by companies participating in the National Lubricating Grease Institutes latest global production survey, released last week.