Trends & Studies
Japan’s base oil production for April fell 20 percent compared to the same month last year, according to data recently released by the country’s Ministry of Economy, Trade and Industry.
Base oil production in China has largely returned to normal levels, but demand in other parts of the world is still down significantly because of the Covid-19 pandemic and may not recover much until late in the year, according to industry insiders and an analyst speaking at a webinar Wednesday.
Registrations for sales of new passenger cars, trucks and buses fell 29 percent in April, compared to a year earlier, according to data released on May 18 by the Japan Automobile Manufacturers Association.
Esso (Thailand) Public Co.’s lubricant sales fell 5.7 percent last year, in line with a decline in the country’s sales of motor vehicles and motorcycles.
Covid-19 pandemic lockdowns in Asia have resulted in increased demand for food-grade lubricants, industry insiders said.
Asia accounted for more than half of 11.2 billion pounds of global wax supply in 2019, leading in petroleum waxes in large part because of China refineries’ widespread production of wax through processes not involving API Group I base oil, an industry insider said.
Asia-Pacific continued to lead in global wind power development in 2019, accounting for 50.7 percent of new installations, boosted by regulatory reform during the past two years, according to a report by the Global Wind Energy Council.
The economic wrecking ball that is the coronavirus went into full swing this week when it sent the price of crude oil back to 1991 and pounded stock markets.
Japan exported 4.8 million motor vehicles in 2019, a marginal increase from 2018, while domestic sales for all motor vehicles dropped 1.5 percent, according to data compiled by the Japan Automobile Manufacturers Association.
Base oil refiners in Asia are slashing production and looking for alternative markets amid plummeting lubricant and grease demand in China, industry insiders say, as the coronavirus outbreak continues to rattle markets.