ILMA Compoundings - February 2021 - 21
Adjusting
in Asia
Blenders in the AsiaPacific region rethink
their supply chains
By Lye Ching Lam
L
ubricant blenders in the AsiaPacific region said they do not
see major changes in their base
oil and additives supply chain in the
short term, despite COVID-19-related
uncertainties in the region. However,
some are looking into shortening their
supply chain.
" There are no major changes so far.
All the companies we buy from are still
able to supply their products, it just
needs a longer lead time, " said Sompob
Tingthanathikul, managing director of
Thai Petroleum & Trading Co.
Despite the uncertainties, " due to
technical and cost considerations, it is
expected that the market will still rely
on imports in the next two years, " said
a spokesperson from the lubricants
division of Yip's Chemical Holdings Ltd.
Anuj Kumar, energy industry project manager at Kline & Co., concurs.
" There has not been any sea change
with respect to the base oil supply
chain, but this situation has induced
some changes in the way products are
sourced, " he said. " For example, one of
the major base oil plants in Singapore,
which produced Group I, is offline
for a while now, and the company is
bringing in products from its other
production sites in other regions to
make up for the supply shortfall. The
base stock production has reduced
in other countries as well, partly in
response to decline in demand and
partly due to lesser production of fuel,
which invariably impact the amount
of feedstock available for base oil
production.
" Short supply is experienced
throughout the region, which is
pushing up base oil prices and
associated margins, " he added. " In
some countries, like India, where fuel
demand has almost recovered, base oil
production has reached pre-COVID
levels as well. "
" We actually foresee
buying more additives from China due
to more investments
from major additive
companies in China. "
Sompob Tingthanathikul,
managing director, Thai
Petroleum & Trading Co.
However, in the long term, " Procurement from the Asia-Pacific region
is expected to rise. It is because there
are more uncertainties in the supply
chain of procurement from Europe and
the United States under the current
socioeconomic environment, " added
the spokesperson of Yip's Chemical.
In China, " At the beginning of the
COVID-19 outbreak, we saw a significant impact on the transportation
and logistics of the supply chain in the
lubricants industry in China due to
suspended traffic or even lockdowns.
With the pandemic gradually under
21
ILMA Compoundings - February 2021
Table of Contents for the Digital Edition of ILMA Compoundings - February 2021
ILMA Compoundings - February 2021 - Cover1
ILMA Compoundings - February 2021 - Cover2
ILMA Compoundings - February 2021 - 1
ILMA Compoundings - February 2021 - 2
ILMA Compoundings - February 2021 - 3
ILMA Compoundings - February 2021 - 4
ILMA Compoundings - February 2021 - 5
ILMA Compoundings - February 2021 - 6
ILMA Compoundings - February 2021 - 7
ILMA Compoundings - February 2021 - 8
ILMA Compoundings - February 2021 - 9
ILMA Compoundings - February 2021 - 10
ILMA Compoundings - February 2021 - 11
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ILMA Compoundings - February 2021 - 14
ILMA Compoundings - February 2021 - 15
ILMA Compoundings - February 2021 - 16
ILMA Compoundings - February 2021 - 17
ILMA Compoundings - February 2021 - 18
ILMA Compoundings - February 2021 - 19
ILMA Compoundings - February 2021 - 20
ILMA Compoundings - February 2021 - 21
ILMA Compoundings - February 2021 - 22
ILMA Compoundings - February 2021 - 23
ILMA Compoundings - February 2021 - 24
ILMA Compoundings - February 2021 - 25
ILMA Compoundings - February 2021 - 26
ILMA Compoundings - February 2021 - 27
ILMA Compoundings - February 2021 - 28
ILMA Compoundings - February 2021 - 29
ILMA Compoundings - February 2021 - 30
ILMA Compoundings - February 2021 - 31
ILMA Compoundings - February 2021 - 32
ILMA Compoundings - February 2021 - Cover3
ILMA Compoundings - February 2021 - Cover4
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