China’s Industrial Lubricant Prices Set to Increase – Oil and Labor Costs Contributing Factors
GCiS China Strategic Research has published a study of the China market for industrial lubricants, estimated at 3.5 million tons at the end of 2010. Manufacturing and construction, metallurgy and mining make up the bulk of the industrial lubricants market. Pricing increases are expected on factor costs and the wider demand for quality lubricants.
A useful proxy for analyzing general industrial trends, the consumption of industrial lubricants resembles that of much fixed asset investment in China. Manufacturing and construction, metallurgy and mining make up the bulk of the industrial lubricants market, with significant demand for hydraulic oil and gear oil recorded. This mirrors the investment in China’s primary industries and industrial expansion by both public and private concerns.
However, higher pricing means that revenue growth will exceed that of output. Future growth rates of 13% are expected in nominal terms as lubricants get more expensive. “Customers will face higher prices, and input costs such as oil and labor are a factor,” said Jessie Jiang, senior analyst and co-author of the study. But quality is a driver too. The demand for higher quality lubricants has spread in the wake of greater Class III Base Oil adoption and government promotional efforts. “Better lubricants save energy and increase the lifespan of machinery,” Jiang added. “Customer awareness of these attributes has increased in China.”
About the GCIS China Industrial Lubricants Study
(http://www.gcis.com.cn/Research/Industrial%20Lubricants.html) This GCiS market study draws on a three month, in-depth primary survey of over 90 of the market’s supply side, channel players and end-users. It is essential reading for any professional needing accurate and detailed strategic information on this market. Major areas covered include: market size and shares, five-year projections, market structure, pricing trends, distribution, consumption, an assessment of key suppliers and more.
About GCiS China Strategic Research
GCiS is a China-based market research and advisory firm focused on business to business markets. Since 1997, GCiS has been working with leading multinationals such as Siemens and GE in sectors ranging from technology to industrial markets, medical, chemicals, resources, and a few others.
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