UKLA President’s Report
The first quarter this year has flown by. We find ourselves in a very strange market environment.
At the time of writing this, Brent Crude has just popped back over $50 a barrel whilst in the currency markets, the US Dollar is extremely strong against both the EURO and the Great British Pound.
By the time this goes to print it is very difficult to predict where these markets will be in terms of values.
The dramatic reductions in crude have been followed by a tumbling in Group I baseoil pricing since the recent peak of the market in October 2014. Clearly there is huge desire to hold on to these raw material reductions to increase profitability, this is obviously being challenged by the customer base demanding the reductions be passed on as soon as possible. All this has led to slight reductions in demand whilst we await some stability in market drivers.
At the other end of the market the Group IV suppliers (C10 based PAO) cannot produce enough product to keep up with demand due to a variety of issues. This supply demand imbalance does not look like it will change in the near future. With Cars 2020 legislation looming in what is now the not too distant future, the drive towards lower viscosity oils will increase the demand for baseoils which have the capability to cope with the increased demands of the modern engine. It will be interesting to see what baseoil producers and equally importantly formulators do to ensure the independent market has access to the next generation of OEM approvals. As it stands
UEIL President’s Report Dear Lube Magazine Readers,
In this second edition of the Lube magazine this year, I am very happy to announce that the UEIL Board of Directors has, since meeting at the end of January, defined an in-depth action plan for the public affairs approach UEIL will put forward in 2015.
A shortlist of topics that UEIL will focus on was created: - REACH legislation and its impact on SMEs - CN Codes - Access to technical information
Regarding taxation issues, as you will read further in detail in the UEIL section of this edition of Lube, although the European Commission has decided to withdraw the Energy Taxation Directive, UEIL will continue monitoring the situation in order to ensure any further developments on this matter can be tackled from their roots.
This list of topics resulted from reasoned discussion with representatives from all perspectives of our industry. In case you believe there are further priorities you would like UEIL to cover this year and years to come, do not hesitate to get in touch with us via
info@ueil.org. You are on the field implementing the regulations we try to shape in favour of a fair market for our industry. You are the final consumer of UEIL’s efforts. And we need your guidance to better help you.
In February, at the 19th ICIS World Base Oil Conference in London, I presented the UEIL activities and strategic programme. I want to thank the organisers for hosting UEIL at this important event where most of the European Lubricants producers are attending. Some positive messages have been given by the
I see C12 based PAO and Group III+ baseoils having a very important role to play.
On the UKLA front, the secretariat and the board of Directors continue to work hard on behalf of the members to ensure we are meeting your needs.
The 2015 Certificate of Lubricants Competency (CLC) course has commenced. CLC training has been expanded and this year will see the first CLC Executive Briefing. This is a two day course at the end of April targeted at more senior members of the industry. Interest in this course is strong and we look forward to this being an ongoing opportunity for members to increase and expand knowledge.
I am also pleased to see that ATEIL will be working with UKLA to offer ATEIL Code of Practice training in June. This follows the UEIL Delegation Meeting and the UKLA Golf Day at Celtic Manor. Details of these events can be found at
www.ukla.org.uk/events/.
VLS work continues to grow as the industry strives towards a level playing field for all. I have been very pleased with the positive reception VLS continues to receive from virtually all members, for the “Nay Sayers” one would question, why? As always I welcome your feedback and comments on UKLA matters, so please feel free to contact me.
Simon Brander Email me at
Simon.brander@
multisolgroup.com Or Tweet me @UKLA President
speakers regarding the economic growth of the coming years as well as a possible delay of some Group I refineries closure, although Group II/III base oils demand is expected to increase.
The next UEIL meetings will take place next month (May), with the Committees (HSE – that is now coordinating further tests regarding the Ionic Mixtures study, Competition, and Technical – with 12 new cases to consider since the start of the year) meetings and the UEIL Board of Directors meeting taking place on 20 and 21 May, respectively. The first (out of two) yearly General Assembly Meeting will take place on 21 May in the morning. I encourage UEIL Members to attend, and/or submit your concerns to the UEIL Secretariat.
Don’t forget to check out the UEIL website
www.ueil.org for updated information regarding the UEIL 2015 Annual Congress, to take place between 21-23 October 2015! I am extremely happy to count on the support of the Annual Congress Programme Committee members, in particular on the knowledge and experience of Edwin Leber (UNITI).
On that note, enjoy this edition of the magazine and have a good Easter break,
Sincerely yours,
Fabio Dalla Giovanna UEIL President
For any questions regarding the above, do not hesitate to contact us at
info@ueil.org
LUBE MAGAZINE NO.126 APRIL 2015
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