At the beginning of the new year, various brands of lubricants set off price fluctuations. So far, it has continued to rise.
Lubricant prices continue to rise
According to news, the Citgo brand price in the United States rose by 3%-5%, and the new price was implemented on March 1, 2017; Exxon Mobil Corporation increased its price by 5%, and implemented the new price on February 22, 2017; Chevron increased its price. 5%, new price will be implemented on March 6, 2017; Philips66 will increase 5%, new price will be implemented on February 27, 2017; Shell will increase 5%, and new price will be implemented on February 20, 2017; Omni will increase by 5% -8%, new prices will be implemented on February 22, 2017; US Cam2 brand prices will increase by 5%-8%, and new prices will be implemented on February 22, 2017...
Lubricating companies queuing up prices, it seems that there is a constant proliferation. So the key point is, why the price of lubricating oil has been rising up? The reason is that the cost increase should be one of the main factors, because from the current situation, whether it is lube raw materials, or packaging costs, or logistics costs Both are rising.
Cost increase is the main reason
As the transaction volume of bulk cargoes continues to rise, the prices of steel, coal, chemical products and base oils continue to rise. Among them, the prices of Class I, II, and III base oils, which are one of the materials for synthetic lubricants, are rising, and the tightening of export sales has also become a factor affecting their price fluctuations.
In addition, the macro environment also has major advantages. At the end of last year, OPEC and non-OPEC oil producers reached the first joint production reduction agreement in 15 years. In this agreement, the oil producing countries plan to start production in January 2017. The total daily production will be reduced by nearly 1.8 million barrels, and the duration of action will be 6 month. Among them, non-OPEC oil-producing countries agreed to reduce production by 55.8 million barrels per day to coincide with the agreement reached by OPEC oil-producing countries on November 30, 2016, which reduced production by approximately 1.2 million barrels per day. Recently, sources have revealed that if the global crude oil inventories cannot fall to the target level, the oil producing countries will be expected to extend the deadline for production cuts from July. A few days after the signing of the agreement, the international crude oil price continued to soar, and the base oil also ushered in an uptrend. The mainstream price further increased by 10-20%.
Lubricant price factor
“By the impact of the macro economy, commodity prices have generally risen.†Zhang Dayong, general manager of China Lubricants, said that not only crude oil prices have risen, but also the prices of lubricant packaging materials and additives have continued to rise.
According to the report, lithium grease, a lubricant additive, is used as an example. Its main additive is lithium hydroxide. However, due to the vigorous development of the domestic new energy automotive industry, the demand for power lithium batteries has remained high. Although current supply and demand tend to be stable, the price of lithium hydroxide has remained at a historically high level. In addition, polyethylene as the main raw material for lubricating oil packaging is also affected by the price of crude oil, and the price rise is more than 40%.
In addition, the rise in logistics costs has made the situation even worse. Last year, a number of ministries and commissions of our country jointly issued the "Administrative Regulations on Roads for Over-limit Transport Vehicles." In September of the same year, several departments conducted large-scale joint inspection activities, which led to a rapid increase in the cost of logistics and transportation. At the same time, the transport capacity became even more tense.
Lubricant manufacturers go from here?
Zhang Dayong believes that “this price increase is beneficial to those lubricant companies with brand positioning and long-term goals, and they can seize the market price of the original billion-dollar market†but for those small manufacturers, before Although it is possible to survive through the price war at the time when raw material costs are low, there is a certain profit margin. However, when the cost rises, small manufacturers will have to increase their prices accordingly. At this time, their low prices will no longer have any advantages. This will make it difficult for small manufacturers to develop positively or even survive when the economy fluctuates.
In addition, an industry source told reporters that for large domestic lubricant brands, this is an opportunity to align with international brands and develop high-end products. However, as countries around the world continue to tighten their energy-saving and emission-reduction policies, the competition for high-end products will become more intense. Therefore, how to increase brand competitiveness under the new competitive trend has become a top priority for corporate development.
THOR Series 3.0 Tons Electric Forklift
Forklift Truck,3.0 Tons Electric Forklift,3 Wheel Mini Electric Forklift,High Quality 3.0 Tons Electric Forklift
MASCOT ENTERPRISE LTD , https://www.green-mascot.com