Base Oil - Group II Category Intelligence
- Global Capacity–Demand Analysis
- Global Trade Dynamics
- Regional Market Snapshot-North America, Europe, Asia
- Cost Structure Analysis
Production Size North America
Production Size Europe
Production Size Asia Pacific (APAC)
Base Oil - Group II Market Trends
Category Intelligence on Base Oil - Group II covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Table of contents
- Base Oil - Group II Executive Summary
- Supply Market Outlook
- Demand Market Outlook
- Industry Best Practices
- Base Oil - Group II Market Analysis
- Global Market Size: Base Oils
- Global Market Outlook:
- Demand-Supply trends and forecast
- Key End-use Industries
- Trade Dynamics
- Regional Market Outlook [NA, EU, Asia]:
- Regional Market Snapshot
- Demand-Supply Trends and Forecast
- Trade Dynamics
- Base Oil - Group II Industry Analysis
- Porters Analysis
- Industry Drivers and Constraints
- Industry Events
- Base Oil - Group II Cost and Pricing Analysis
- Cost and Price Analysis:
- Cost Structure Analysis
- Price Forecast Base Oils
- Base Oil - Group II Supplier Analysis
- Global Capacity Share by Suppliers
- Regional Capacity Share
- Exhaustive Supplier List
- Detailed Supplier Profiling and SWOT Analysis
- Base Oil - Group II Industry Best Practices
- Sourcing Models and Widely Followed Industry Practices
Industry Outlook & Drivers
Global Base Oil Market Outlook
- Global, group Il market is expected to grow at a CAGR of 3 percent during 2017-2022
–The robust demand growth from Asia, especially industrial segment is expected to drive the growth for base oil and demand for industrial area is expected to grow at a CAGR of around 4 percent
- The industrial lubricants sector is the second largest base oil consuming segment in the global market
–Increasing mining activities in the Asian market is expected to drive the demand for group II base oils
- The base oil price outlook ( Q3 2019 vs. Q2 2019): N.A.: 5–6 percent decrease, E.U.: 5–6 percent decrease, Asia: 5–6 percent decrease.
- The major base oil market and share: N.A.: 39 percent, E.U.: 3 percent, Asia: 56 percent, and Others: 1.2 percent.
- Base oil market report suggests that top sellers release the base oil market price based on the previous month’s prices and current month’s market dynamics.
- Contracts are fixed during the early or mid of the month and the same is continued for two months. These are later released via public domain or IPROs, which are used as reference by other market participants for further negotiations.
Demand Market Outlook
- The global group II base oil market has excess capacity and is expected to further increase in the next 2-3 years due to capacity additions, mainly in Asia
- Major demand is expected from Asia and the US market since most of the derivative units (industrial, automobile and metal processing) are lined up in Asia. The automobile (2-3 percent growth) and the mining sector (3 percent growth) would be the key segments driving the demand. Around 1.5 MMT capacity additions are planned for lubricant production
Global Market Size-Group II Base Oils
- Global group II base oil market is expected to grow at a CAGR of 3 percent mainly driven by increased demand for clear and high efficiency lubricants in the western markets and demand from industrial lubricants in Asian countries
- Significant growth is expected to come from automobile sector due to consistent increase in vehicle production in the global market
- Demand from the Asian industrial segment is expected to grow at a CAGR of 3-4 percent mainly driven by mining activities in China, Mongolia and Australian markets
Global Capacity-Demand Analysis
- Consistent shift towards highly pure base oils has led to increase in group II capacities: Rising environmental concerns and regulations proposed by OEM's have consistently increased the demand for group II base oil demand. Moving forward the same trend is expected to continue due to the improved demand from automotive segment from developing countries
- Demand for light vehicles to grow at a CAGR of 3-4 percent: Increasing light vehicle sales is expected to drive the demand for automobile lubricants through 2020
- Group II capacity additions are planned in Asia and US: Changing dynamics in the US resulted in almost 30 percent of the players switching from group I to group II capacities. The US is expected to remain a net exporter with excess group II supply in the domestic market
- One year contract with quarterly price revisions: In the US and Europe, players can engage with year long contract with quarterly price revisions
- Spot buying is preferred in Asia: In Asia, spot buying is mostly preferred, since the consumers buy group II base oils and convert it in house for their personal care applications
- Bulk cargo shipments are preferred for contract buying: CPG players can buy their volumes in bulk at one stretch to save ocean freight charges and increase volume discounts
- The base oil market report shows that surplus supply in the U.S. market makes it a best sourcing destination for European and Asian base oil market.
- In North America, Group II can be substituted with group III in machinery and engine oil applications. However, intensive processing the production cost thus incurred, would weigh down the advantage of moving to Group III from Group 1 base oil.
- Since Group II base oils are produced though hydrocracking at varying boiling points ranging from 300 degree Celsius, gas is used as a burning agent in the refineries. Hence, gas prices play a major role in deciding the base oil market price
Why You Should Buy This Report
- The base oil market report gives the cost structure and price analysis of Group 2 base oil.
- It gives the supplier trends, global share, key profile and does a SWOT analysis of major base oil suppliers like Chevron Phillip, Exxon Mobil, Sinopec, LyondellBasell, etc.
- The report lists out the key drivers and constraints and does Porter’s five force analysis of North America, Europe, and Asia base oil market.
- It lists out the key technological trends and innovations for base oil markets.