The China lubricant market has been heavily affected by the economic troubles in the developed world, with demand both domestically and internationally decreasing by 3.6% in 2011. This trend is in vast contrast to the early period 2006 to 2010 when China lubricant production increased by a CAGR of 8.4%. By the end of 2015, output of lubricant from China is forecast to total 9.94 million tonnes.
Increased regulations concerning waste discharge and the uncertain economic state of a large number of developed countries is expected to heavily impact the fortunes of China's lubricant industry, especially the high-quality lubricant sector. However, the continued demand for motor vehicles in combination with the 12th five-year plan period 2011-2015 will help drive demand in the lubricant industry in China.
An approximate 3000 lubricant manufacturing companies including a total of 30 foreign companies operate in China's lubricant industry although it is a highly consolidated market with China Petrochemical Corp. and China National Petroleum Corp attaining more than a 50% share of China's lubricant market in terms of revenue. It is the larger corporations which are focused on the high-quality lubricant sector; a market which is associated with higher profits and prices.
In terms of foreign operations in China, ExxonMobil, Shell and BP Castrol account for 30% market share of the total lubricant market in China, leaving just 20% left for the majority of smaller players.
For more information on the China lubricant market, see the latest research: China Lubricant Market
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