search.noResults

search.searching

note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
What is the potential of the


biggest lubricant market in Europe?


Elmira Gabidullina, Evnika Polovinkina, GBC Ltd


Over the last couple of years, Russian lubricant producers, both large and small, have been eager to increase their market share and replace international brands. Since prices of imported lubricants went through the roof along with the Euro and USD exchange rate, some local companies have focused on modern technologies and on improving their products in order to reach the level of their overseas counterparts. The outcome was fast, and in 2016 major players started talking about the growth of sales.


On 23-25 May 2017 in Moscow, the CIS Base Oils and Lubricants conference gathered together industry experts and professionals from Russia, CIS region, their international peers, and global and local think tanks. The event shed light on what we can expect from the largest lubricants market in Europe in the near future.


Global trends Apu Gosalia from Fuchs Petrolub, entitled his presentation “Markets in Motion,” a title which perfectly reflects the current feeling of a changing environment which is making producers and market players reconsider their strategies.


Analysing the lubricant market development over the last 10 years, Apu Gosalia pointed out that, in volume, global lubricant demand is stable, however, on a regional level we can still see sharp contrasts between regions such as the Middle East (growth of 0,7%) and Southern America (decreased by 0,8%). Nevertheless, even taking regional difference into account, experts do not expect any significant changes from lubricant consumption globally and the demand growth will continue to slow down.


Why is there a feeling of motion in the stagnating market? The business environment itself is changing with new drivers and disruptors. That is something the lubricants industry has to react to. Apu highlighted some of the influencing factors and “disruptors” which are changing the usual business patterns. The main driver is competitive landscape change, which is about new players coming to the market from other industries, from NOCs “globalisation” and major restructuring, as shown in Figure 1.


Digitalisation is the main “disruptor” which can change relations between consumers and producers. Start-up companies are approaching lubricants consumers directly and are offering them services to optimise the whole plant or digital solutions on how to choose specific lubricants. In this case, lubricant manufacturers become just blenders, rather than solution providers.


Changes are happening very fast, but the main question remains: “What will the demand for the lubricant industry products be?”


Industrial Lubricants Market Presenting at the CIS Base Oil and Lubricants conference in Moscow, Sharbel Lusuriaga from Kline said that, according to the research, projections for 2017 remained positive, despite uncertainty surrounding the policy mix to be adopted by the new US administration, and geopolitical and crude oil price instability. The Russian lubricants market, currently at 1,640 KT, is expected to recover after consecutive years of contraction.


Kline suggests that the Russian energy, extractive and heavy manufacturing industries continue to drive the demand for industrial lubricants with the following breakdown, see Figure 2.


Figure 1.


42


LUBE MAGAZINE NO.140 AUGUST 2017


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60