GLOBAL TRENDS, INDUSTRIAL LUBE MARKET, MOTOR OILS AND GREASES
Posted by GBC on 25 Dec 2017
For the last years many lubricant producers in Russia, both large and small ones, reached the level of their overseas counterparts, they managed to leave behind poor-quality materials with its knockdown prices resulted from low-quality feedstock and poor QC. Russian producers were eager to take place of overseas firms, since their lube prices went through the roof along with Euro and USD exchange rate.
The outcome was quite fast, and major players started talking about the growth of sales that occurred in the past year. At the same time demand for lubes suffered significantly because of macroeconomic factors (economic slowdown, decrease in automotive industry) and in 2017 it is 20% lower than it was in 2007. In recent years domestic demand came crashing down, ultimate consumption rate wen down by 7.1%, incl. household consumption which dropped by 10.1%. Global trends such as digitalisation and economical shift from service to production are influencing Russian lubes industry.
What shall we expect in the coming future from the largest lubes market in Europe?
The overview was published in the UKLA Lube Magazine August edition
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