lubricant

Lubricants industry is the pillar industry of China -an important part of petroleum and chemical industries. Closely related to the macroeconomic situation of China and to the automotive, machinery and transportation industries etc. Lubricants industry is one of the four pillar products yielded by Chinese petrochemical industry, under the demand-driven, lubricants industry in China is facing unprecedented challenges and opportunities. In year 2005, the total import of lubricants reach to 183,409 tons, decreased 3.06％ compared with the figure of 2004, consumption comes to 6,446,000 million tons, 0.4％ lower than the number of 2004. In witch, the production of lubricants oil is 5,415,000 ton, 4.0％ over the corresponding period. In the lubricants market in 2005, base oil's running tight and the prices remains high, all the problems leads to the reason of the decline to lubricants imports. As the price of base oil continues to soar, in order to markup, many enterprises raise their products' level and abolish the low-level products. In the pressure of the domestic base oil prices, most enterprises are facing cost pressures and sales pressure. Under the severe competition in lubricants industry and the limited increasing space, enterprises gained less and less profit. Many small companies lose the advantage of the quotation, the challenge will be even more severe.