08 June 2010 08:26 [Source: ICIS news]
SEOUL (ICIS news)--Massive growth in vehicle ownership in China will support demand for base oils over the next few years, Tim Ford, vice president for Shell Lubricants Asia-Pacific said on Tuesday.
Despite a number of uncertainties in the market, such as the volatility of prices and the recovery of developed markets in Europe and North America, a 5–10% growth in the lubricants business in ?xml:namespace>
Furthermore, the demand for high-quality base oils in Asia would rise and the gap in quality between western markets and
Ford was speaking at the 4th ICIS Asian Base Oils & Lubricants Conference held in
“The IMF forecasts a GDP growth of 7% across the region,” said Ford, adding that while vehicle ownership in
Road-building programmes would stimulate lubricant demand firstly through the large amount of construction-related lubricant consumption, and secondly, by demand from vehicles on the roads, he added.
On a separate note, Ford said that advanced technology was required in the car industry, due largely to the increasing focus on reducing emissions and increasing fuel efficiency.
It was no longer true that there was less environmental pressure in
However, Ford added that many companies in
Base oils are used in the formulation of lubricants across a broad spectrum of applications, from automotive engine oils to industrial and process oils.
High-quality base oils refer to group II / II+ / III base oils, versus the traditional group I base oils.
The demand for group III is estimated to be 6% of
With additional reporting by Anu Agarwal
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