Fierce competition in the domestic oil market

Newstime: October 31, 2016

   Industrial consumables with a property requires regular replenishment, add or change, the demand and development of China's manufacturing industry is closely related. China is now the world's second lubricating oil consumer, but growing rapidly. Many international brands because of China's huge market and broad prospects for development, have entered the Chinese market, Shell, Mobil, bp, Castrol and other foreign brands, with its technology and brand, the formation of a lubricating oil to dominate the Chinese market pattern. However, the Kunlun Mountains, the Great Wall, reunification and other national brands have become enthusiastic consumers choose brands.

  Analysts pointed out that in 2000, China's industrial added value of 40,033.59 million, 2012 has reached 199,670.66 yuan, has prompted the development of industrial manufacturing of continued growth in demand for lubricating oil, lubricating oil demand in China in 2000 was 334.4 million tons in 2011 to reach 6.8 million tons, a record high, after the extent of the domestic manufacturing industry downturn deepens, the oil industry as consumer demand economic barometer fell significantly, in 2013 domestic oil demand fell to 5.8148 million tons.

  Domestic oil market is highly competitive. Before the 1990s, sales of domestic oil production and the unified deployment by the State, monopoly market structure. With the advance of energy reform, lubricants become one of the earlier release of the petrochemical sub-sector, private oil companies from small to large, showing a good momentum of development, in 2013 the domestic market share reached 26 %. According to statistics, the current size of the domestic oil companies more than about 2000, the number of small and medium enterprises, small scale, poor ability to resist risks, price wars become a common means of competition, the fierce competition in the industry. Meanwhile, foreign oil companies with leading technology and comprehensive strength, occupy a favorable position in the competition, local national oil companies import substitution arduous task.

 "Twelve Five" major project planning to determine the construction of China, will continue to drive demand for rigid construction machinery manufacturing, transportation, logistics and transportation industries. Domestic demand and increase investment in infrastructure construction will provide a huge consumer market for the lubricant industry. Meanwhile, the environment and the potential of the domestic car demand is still rigid, which will also boost the demand to a large extent automotive lubricants market. The next 10 years, the Asia-Pacific region lubricating oil demand will reach 15.5 million tons, while China will account for 40% of the region's demand. By 2020, demand for lubricants in China market will double consumption will likely surpass the United States. And oil industry development, and energy efficient, high-end development trend of engine oil to adapt to the future needs of high-performance base oils and high quality additives continue to study and use, so as to meet the demand for high-quality internal combustion engine development.


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