News Sponsored by Chevron Base Oils

Monday, November 21, 2016VOLUME 12 ISSUE 47
FREE SUBSCRIPTION!
Information on Advertising
Back to the Newsletter
News Sponsored by Vertex-Penthol
News Sponsored by Vertex-Penthol
Media Partner
Media Partner
Digital Book: LubriTec Synthetic Lube XRef - ED 6
Digital Book: LubriTec Synthetic Lube XRef - ED 5
Subscribe
Click Here to Subscribe, Unsubscribe or Change Your Options
After Declining Growth in 2014 to 2016, Latin America Lube Demand Expected to Rebound in 2017

After the region experienced slow growth during the period 2014 to 2016, finished lubricant demand in Latin America and the Caribbean is forecast to reach 3.9 MT (3,900 KT) in 2020 and 4.3 MT in 2025, with Brazil, Mexico, and Chile leading the way, according to a report from consultancy Kline & Co.

During a webinar covering the report last Wednesday November 16, Sharbel Luzuriaga, Project Lead in Kline's Energy/Petroleum Practice, highlighted the current size of the Latin American and Caribbean finished lubricants market by major countries and product categories

The presentation, Opportunities in Lubricants: Latin America and Caribbean Market Analysis is based on Kline's recently completed study on the global finished lubricant basestock market. Detailed country market analysis for the following countries have been provided in the report: Argentina, Bolivia, Brazil, Colombia, Costa Rica, Chile, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Panama, Peru, Puerto Rico, and Trinidad & Tobago.

According to Luzuriaga, economic growth in Latin America and the Caribbean is at a turning point. As a consequence of low commodity prices, the region experienced slow growth during the period 2014 to 2016. Future growth in the region will be driven by growth in exports and trade deals with North America and other regions, namely the EU, and countries from the Pacific Rim.

The top GDP contributors in Latin America and the Caribbean, which include Brazil, Mexico, and Argentina, are also the top contributors to the finished lubricant demand in the region. "Brazil, Mexico, and Argentina account for more than 60% of the total lubricant demand in Latin America and the Caribbean" said Luzuriaga.

Luzuriaga continued saying that conventional multigrade PCMOs, 15Ws, 20Ws, 25Ws as well as monogrades such as SAE40/50 dominate the overall LATAM markets accounting for more than three-fourths of the total PCMO demand in the region and that growth in car sales will result in growth of light viscosity PCMO grades.

He then stated that conventional multigrade HDMO, 15W-40/50, continues to be the dominant grade for heavy duty engine oils in LATAM, accounting for more than 50% of the total HDMO demand in the region and that markets are increasingly moving towards multigrade HDMOs, while monogrades are declining.

In industrial segment, process oils, hydraulic fluids, and industrial engine oils lead the demand.

Luzuriaga said "Brazil, the biggest demand market in Latin America and the Caribbean, is experiencing a retraction in lubricant demand since 2014. However, by 2018 the market is expected to start recovering. The next country, Mexico, is the second largest demand market for finished Lubricants in Latin America and the Caribbean and the demand in the country is growing at moderate slow growth rates. Finally, Argentina is the third largest demand market for finished Lubricants in Latin America and the Caribbean, will see minimal growth over the next five and ten years primarily due to a pullback in the consumer automotive segment".

Global majors, Shell and ExxonMobil, are the top two suppliers of finished lubricants in Latin America and the Caribbean at approximately 500 KT and just under 400 KT respectively, competing directly with prominent regional suppliers. Rounding out the top 10 suppliers, following Shell and ExxonMobil are (Brazil-based) Petrobras, Chevron, (Brazil-based) Ipiranga, (Brazil-based) Cosan-Mobil, Argentina's YPF, PETRONAS, BP, and MexLub (Pemex).

Luzuriaga concluded by stating "Finished lubricant demand in Latin America and the Caribbean is forecast to reach 3.9 MT in 2020 and 4.3 MT in 2025, with Brazil, Mexico, and Chile leading the way. Demand for finished lubricants in Latin America and the Caribbean is forecast to grow at a CAGR of 1.7% between 2015 to 2025, backed by the growth in automotive lubricants such as demand for PCMO, HDMO, 2T/4T, HTF, and gear oils; and industrial products such as hydraulic fluids and industrial engine oils".


[PRINTER FRIENDLY VERSIO0
News Sponsored by Inolex
News Sponsored by Inolex

Global Lube Base Oil Specifications

API Group I
API Group II
API Group III
API Group IV
API Group V

Archive
November 14, 2016
November 7, 2016
October 31, 2016
October 24, 2016
October 17, 2016

[MOR0

Please do not reply to this message. Replies to this message are routed to an unmonitored mailbox. Please send all comments and correspondence to lubritec@aol.com.?

Published by Lubrication Technologies, Inc.
Copyright © [[yea0] Lubrication Technologies, Inc.All rights reserved.
Includes copyrighted material of IMakeNews, Inc. and its suppliers.
FORWARD TO A COLLEAGUE
Privacy Policy
Powered by IMN™