Legal & Regulatory
Tianhe Chemicals Group faces potential delisting from the Hong Kong Stock Exchange in 10 months if it does not file overdue earnings reports and meet other regulator requirements, according to a recent filing by the company.
The trade war between China and the United States is on, and the lubricants industry is caught up in it, along with many others. Analysts say some companies are affected more than others, and that many are trying to navigate the new seascape in order to minimize financial impacts.
The introduction of the China 6 emission standard in 2020 is expected to push lubricant formulations to cater to a diverse range of engines, industry experts said at a conference in Singapore recently.
U.S. suppliers of lubricants, lube additives and base oils are hoping that their government and China avoid an impending trade war but preparing to cope with Chinese tariffs on imports in case they dont.
Asias petroleum wax supply grew at a compound annual rate of 1 percent between 2010 and 2017, a trend which is expected to continue despite an overall decline in global supply, said consultancy Kline & Co. in a webinar.
India, the worlds third-largest finished lubricants market, does not have a nationwide trade group to represent the industry. A number of companies are now looking to remedy that by forming an association to act as their unified voice, after a consultant floated the idea at a Mumbai conference earlier this month.
As Sri Lanka reviews applications from companies wanting to join the nations closed lubricant market, an official with the industrys regulating agency said new competition could very well eat into market shares of existing suppliers.
South Korean government agencies will intensify their lubricants inspection program beginning next year.
South Korea recently eased restrictions on the modification of petroleum products within customs zones of its ports. Producers can now blend lubricants, for example, in areas designated for storage, temporary inspection and international trade.
Indias central government enacted the Goods and Service Tax Act partly to facilitate cheaper goods for consumers. In the lubricants market, though, the fulfillment of that goal has been spotty, even four months after the laws passage.