Lubricant Basestocks Merchant Supplier Assessment

To Be Published 4th Quarter 2019
Regional Coverage: Global

The global lubricant basestock market is in the middle of significant structural changes which pose new challenges to basestock suppliers. First, basestock production capacity far exceeds demand, especially for high performance Group II and Group III basestocks. Second, the number of merchant suppliers and merchant supply is growing at the expense of in-house basestock production. With quality basestock readily available in abundance, other factors such as customer service, technical support, wide product slate, and formulation support become the differentiating factors for basestock supplier selection. This study profiles leading merchant basestock suppliers and assesses how they are viewed by lubricant blenders on different performance attributes.

This Report Will Help Subscribers to:

  • Profile the basestock business of major merchant basestock marketers
  • Identify the major supplier selection criteria (attributes) for basestocks across the world and show how this differs by region, size and type of blender
  • Identify top-performing suppliers on each attribute based on perception among blenders
  • Identify the changing needs of blenders which will help basestock marketers plan their portfolio for the future


Report Contents

The report will have two modules:

  • Supplier profiles
  • Perception of basestock marketers among lubricant blenders

Supplier Profiles
Brief profiles of leading basestock merchant suppliers listed in
Table 1:

  • Production capabilities: Basestock production capacity and production (historical and current) by plants, location, API groups, key grades, technology used for production, crude source used, feedstock arrangement
  • Product slate and outlook: Key product properties, key approvals, expansion plans, and risk of closure
  • Product placement: Key markets served – domestic vs. export sales, logistic infrastructure, distributor tie-ups, storage locations, in-house and merchant market sales

Lubricant Basestocks Merchant Supplier Assessment Table 1

Perception of Basestock Marketers Among Lubricant Blenders

  • Identify the key attributes** for supplier selection:
    − Product-related: Product quality and performance characteristics, approvals, product consistency, feedstock source
    − Logistics-related: Multiple production sites, widespread storage points/distribution network, logistics support
    − Technical support: Coverage of different additive technologies, support for reformulation, support for a wide number of formulations with minimum number of basestock grades
    − Company-related: Customer friendliness, brand name, customer support, proven track record in the market
    − Price-related: Fair prices, price consistency
    − Commercial terms: Lead time, call-off period, contract flexibility
  • How are basestock suppliers perceived based on these
    − Performance evaluation of major basestock suppliers on key attributes
    − Identification of differences in perception of major suppliers by region and type of blender
  • What is the future direction of the market?
    − Key unmet requirements of blenders
    − Key issues faced by basestock suppliers
    − How these issues can best be addressed
    − Which basestock grades blenders perceive are likely to grow in demand and their perception on the availability of these grades in the future

* Subject to charter subscriber input
** List of attributes is indicative and may be expanded subject to subscribers’ input.
*** Only the top performing suppliers of each of the attributes will be identified along with the relative position of subscriber companies.

Scope & Benefits

Survey will be conducted with lubricant blenders based across various regions per the following sample plan:

Lubricant Basestocks Merchant Supplier Assessment Figure

Lubricant Basestocks Merchant Supplier Assessment is a syndicated analysis designed to develop an understanding of how lubricant blenders evaluate lubricant basestock suppliers. Lubricant basestocks suppliers are evaluated in terms of what performance attributes are key to buyers and how different suppliers perform on these attributes in the eyes of these buyers.

  • The study is a useful tool for merchant marketers of basestocks to understand blenders’ requirements and how basestock suppliers can prepare themselves to meet blenders’ expectations.
  • This study also provides a tool for various marketers to check who tops the chart based on perception among blenders and discover their relative position compared to top performers.
  • This study will help blenders assess the level of infrastructure of various suppliers and assess if these suppliers can help meet their requirement.
  • The study will also enable blenders to identify which suppliers are perceived as consistently reliable in the market, which will help them in
    the selection of a basestock supplier.

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