Lubricants Market Morning Report20260626

Global Market Updates

The European Union has unconditionally approved Stonepeak’s acquisition of a majority stake in Castrol, clearing major regulatory obstacles for BP to divest its lubricants business.

Stonepeak Partners LP will gain controlling equity in Castrol. The transaction is still pending approval from the UK Financial Conduct Authority (FCA) and is expected to be completed in the second half of 2026.

Lubrizol has signed a lubricant cooperation Memorandum of Understanding (MOU) with HD Hyundai Oilbank to further expand its presence in the Asia-Pacific market.

The two sides will conduct in-depth cooperation in base stock technology and OEM certifications to tackle lubricant technical upgrades driven by the electrification trend.

Turmoil in the global base oil market: Supply has stabilized after the Strait of Hormuz resumed normal shipping, though geopolitical risks in the Middle East remain.

Prices of Group I and II base oils have fallen, while supplies of Group III base oils and high-viscosity Group IV PAO stay tight. New energy vehicles keep raising higher requirements for lubricants.

Shell has launched a new global lubricant supply chain program to optimize logistics efficiency on Asia-Pacific-Middle East shipping routes.

The new initiative aims to ease logistics cost pressures caused by shipping diversions around the Red Sea and speed up product delivery response across the Asia-Pacific region.

Uni-President Lubricants has advanced digital fluid service, providing full-lifecycle proactive management solutions for key enterprise clients.

The digital fluid monitoring system tracks real-time equipment lubrication status and helps customers reduce risks of unplanned downtime.

Lubricant Industry News

Kunlun Lubricants has obtained dual international OEM certifications for marine lubricants for the first time, reshaping the global competitive landscape of high-end marine oils.

Its self-developed marine cylinder oil 5040P and matching additives have passed dual international OEM certifications, breaking the monopoly held by a small number of global industry giants.

China Lubricant Network: The OEM processing model is undergoing a silent reshuffle in 2026, and special oils for hybrid vehicles have become a brand-new blue ocean market.

Frequent start-stop operations and low-temperature running of hybrid vehicles bring high risks of fuel dilution and oil emulsification, which traditional lubricant formulas fail to adapt to adequately.

New opportunities for liquid cooling lubricants in data centers in 2026: Lubricant enterprises are expanding from oil performance testing to complete electronic system verification.

The booming demand for AI large models and computing power accelerates the penetration of liquid cooling technology, with demand for high-end cooling fluids growing at an annual rate of over 20%.

South American Market

Brazil: The world’s sixth-largest lubricant market with an annual consumption volume of around 1.23 million tons.

Brazil accounts for more than half of finished lubricant demand in South America, and continuous growth in vehicle ownership fuels market expansion.

African Market

South Africa: Africa’s largest lubricant distribution hub with annual demand of roughly 360,000 tons and high reliance on imports.

Over 4 million liters of lubricants are illegally imported into Nigeria every year, and the government keeps strengthening market supervision.

Russian Market

Lukoil Lubricants holds a stable market share of over 40% in Russia with annual sales exceeding 1.2 million tons.

The Moscow International Lubricants & Technology Exhibition will be held, focusing on the restructuring of lubricant supply chains amid international sanctions.

South Asian Market

India: The world’s fifth-largest lubricant market with an average annual growth rate of 3.7%, making it the fastest-growing market in the Asia-Pacific region.

Power and chemical industries are the major consumers of industrial lubricants. The Indian market size is projected to reach USD 174.4 billion by 2029.

Marine Fuel in Malaysia

Malaysia International Marine Expo (MIMEX) 2026 will take place on November 17–18.

Covering an exhibition area of 16,000 square meters, the expo will host 285 exhibitors and attract more than 15,000 visitors, focusing on emerging trends of eco-friendly marine fuels.

Lubricant Technical Basics

Category A · Popular Science: Why regular oil changes are necessary, and what happens if oil is not replaced on schedule?

Lubricants gradually oxidize during operation, generating acidic substances and sludge. Meanwhile, functional additives deplete, and dust plus metal debris accumulate, weakening lubricating performance. Delayed oil changes will aggravate engine wear, boost fuel consumption and cut power output; in severe cases, bearing seizure may occur. It is recommended to change oil in accordance with maintenance manuals, and shorten drain intervals under harsh operating conditions.

Category B · Technical Guide: SAE J300 Viscosity Grades – How to interpret the number before W and high-temperature viscosity figures

The SAE J300 standard defines viscosity grades for engine oils. Grades marked with W represent low-temperature viscosity (W = Winter); the smaller the number, the better low-temperature fluidity. Numbers without W indicate kinematic viscosity at 100°C, and higher figures mean thicker oil films.

Take multi-grade lubricant 5W-30 as an example: 5W reflects cold-start performance at -30°C, while 30 stands for a viscosity of approximately 11–12 cSt at 100°C, suitable for most vehicle models.