"At present, the lube market has not yet recovered, and this adjustment period will continue for some time." On August 6, 2012, Minister of Foreign Trade of the Dongfeng Lubricant Marketing Department said in an interview with reporters. The background of this judgment is precisely because the good situation of the lube market has gone. In 2012, the development trend of China's lubricants market also ushered in the changes in the current situation. Compared to the 1990s and 2011, the annual output was 8,265,500 tons, a decrease of 325,000 tons compared with 2010, and the first time there was a negative growth. In the first half of 2012, China’s lubricant production was 42,10,309.15 tons, which was a decrease of 0.9% compared with 4,248,804.44 tons in the first half of last year. Due to the shrinking of the automotive consumer market, the lubricants market has also been dragged down. Mo Yang told reporters that the most significant decline was in private lubricant companies. Due to the policy of oil procurement channels, private oil companies can only get high-priced oil. Ultimately, the product price is high, the market cannot digest it, and it is forced to withdraw. Experts believe that the frequent fluctuations in the international oil market have led to the lube market entering a high-cost era. Coupled with the adjustments from the petrochemical-related industries and the introduction of relevant regulations, the elimination of reshuffles in the lube industry has become inevitable. Obviously, the method of competing for the market by low-end product price wars is no longer applicable. At present, some SMEs have faded out or have stopped production. , enter the dormancy period. Private lubricant companies die in large numbers Lubricating oil is one of the most marketable petroleum products in China. In the 90s of the last century, China's lubricants market ushered in unexpected visitors, multinational brands peeped into the Chinese market, conducted a rational analysis of China's lubricants market, configured its global strategic resources, and used advanced marketing concepts to integrate with China’s actual conditions. With its high-quality oil products and perfect service concept, it has exhibited a “locking throat function†to the Chinese lubricant industry and formed a high-profit market shock wave. Renhao Ning, a researcher in the energy industry of China Investment Advisors, said in an interview with a reporter from the China Enterprise News that at present, the domestic lubricants market is fiercely competitive and increasingly hot. There are a large number of companies involved in the domestic market. State-owned enterprises, private enterprises, and foreign companies each have a certain market share. Among them, large-scale state-owned and foreign-owned enterprises are favorably favored by consumers and their market share has increased rapidly. This shows that the market concentration of lubricants is expected to increase further. the trend of. As the largest privately owned lubricants company, Dongfeng Lubricating Oil continues to seek targets for mergers and acquisitions. “At present, more than 10 private oil products companies have been acquired,†said Mo Yang. Dongfeng Lubricants values ​​the production lines of these companies. Expanding production capacity has become an important means for Dongfeng to counter industry risks. With the completion of Xuchang 300,000-ton capacity production base and Hebei Xingtai and Mudanjiang capacity projects, Dongfeng lubricant production capacity has reached an annual output of 1.5 million tons, and has successfully squeezed into the top five. Through continuous competition over the years, at present, the three major pattern of China's lubricants market is gradually clear, and international brands and domestic strong brands have formed a high pressure. Thousands of privately-owned lubricant companies are busy producing this one that combines both industrial products and consumer products. At the same time, characteristics of goods, most people feel struggling. "Because of many competitive pressures and elimination, there were more than 3,000 privately owned lubricant companies in China 10 years ago. Today, there are only more than 1,700 leftovers," said Huang Kejun, general manager of Shanghai Haishen Petroleum & Chemical Co., Ltd. “The death of a large number of private oil companies is also normal.†According to Ren Haoning, on the one hand, private oil companies have difficulty in importing crude oil, and petroleum supply and marketing are subject to large-scale state-owned enterprises. On the other hand, state-owned and foreign-funded enterprises have strong funds and advanced R&D technologies. With large market share, high brand awareness, and obvious competitive advantages, it is not difficult to acquire or eliminate private oil companies. In the face of multiple pressures such as survival and development, companies in the lubricants industry are welcoming rising costs of production, labor, and communication costs. This is the biggest problem for thousands of private lubricant companies. . In contrast, the advantages of domestic large-scale lubricant companies are fully realized. Sinopec Lubricating Oil Company is integrating internal resources according to its development trajectory. Song Yunchang, general manager of Sinopec Lubricants Co., Ltd., said that the goal is to establish an integrated production, sales, and research management model and operating mechanism in line with the market's laws to further enhance channel competitiveness. Obviously, Sinopec Lubricant Company has already opened up the integration curtain. [next] Market adjustment opportunities appear With the development of China's economy, the demand for high-end, subdivided, and specialized lubricants has become more apparent. The separate evolution of the dual characteristics of industrial products and consumer goods that lube oils is helping fuel the revolution in the lube market. "When a company develops to a certain degree, or there are too many destabilizing factors in the industry, sometimes it is an expedient measure to withdraw from it or to make a reasonable transition." Yan Guofei, director of Lubrication Brand at Anmei, said that the pressure on the industry's survival is still increasing. Intensified, many companies began to seek new breakthroughs. Experts said that at present, most domestic small and medium sized lubricant manufacturers are small, unknown factories located in the low-end market. As production costs increase year by year, some SMEs must have new ideas in order to compete with big brands and survive. Dong Chao, Minister of Industrial Oils of Dongfeng Automobile Oil (Group) Co., Ltd., told the China Enterprise News reporter that when the market is relatively low, small and medium-sized enterprises that produce low-end products tend to fail, and some produce high-end products. Product SMEs can survive the crisis. In Huang Kejun's view, the traditional private industrial oil companies have come to a certain extent. Because the technological content of products is limited, the price profit space is increasingly being squeezed, and many companies may not have the problem of survival at present, but there are no clear directions for the development of many enterprises in the future. Therefore, the transition is inevitable. Private enterprises must establish their own technical force team to exploit certain aspects of their own technological product advantages, develop certain targeted market segments to develop high-end oil products, and provide necessary services to differentiate themselves from ordinary oil products. Way out. "At present, it is not necessarily the best time for the lube industry to integrate, but it is a good opportunity to adjust the lube market." According to Ren Haoning's analysis, after a long period of development, the saturation of the lube market has increased significantly. The number of companies is large, and well-known brands have acquired consumers. Strongly agree. The market share of star enterprises has increased significantly, and the desire for mergers and acquisitions of small and medium-sized oil companies to seize the commanding height of the lubricants market is very strong, and the new wave of integration is expected to come ahead of schedule.
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