Growth Opportunities in the Chinese Fuel Additives Market to 2020 - Research and Markets
The "Growth
Opportunities in the Chinese Fuel Additives Market" report has
been added to Research and Markets' offering.
The Chinese diesel market is set to grow at a robust pace over the next
5 to 7 seven years as production of diesel vehicles increases and the
introduction of China V specifications takes center stage. The
implementation of China V regulations is key to the consumption of
diesel, and in turn, lubricity improvers (LI) and cold flow (CF)
additives. Lubricity improvers are estimated to grow at a strong CAGR of
11.9% between 2016 and 2022 while cold flow additives, which are
predominantly used in winter diesel, will grow at a lower CAGR of 2.8%.
Excess kerosene availability in China will also be a challenge for the
growth of cold flow additives, as it is a cheap alternative. Local
players in China currently dominate the supply of LI and CF additives to
Sinopec and Petrochina.
The local players that dominate the market have excellent relationships
with both Sinopec and Petrochina. These relationships are long-standing
ones which gives them an edge over new entrants. New companies trying to
tap opportunities in the LI and CF market in China are advised to
partner with the domestic players, as it will enable them to get a foot
in the door' with the state-owned enterprises. Owing to these
long-standing relationships, the technical specifications set by the
refineries are published in such a way that most of these domestic
players will qualify. International additive companies have superior
technical specifications as compared to domestic players, but these
improved specifications are often perceived as premium or expensive.
The procurement process for LI and CF is different between Sinopec and
Petrochina. While Sinopec is predominantly a consumer of LI, Petrochina
is a large consumer of CF, as Petrochina produces larger quantities of
winter-grade diesel due to its locations in colder regions across China.
While the procurement process for Sinopec is done completely at the
headquarter level, the process for the procurement of CF is left to
individual Petrochina refineries. This difference in the tender
processes has made domestic additive manufacturers increase their sales
and marketing staff in order to have a constant presence at the location
of various refineries.
There are however interesting ways by which international LI and CF
players can enter the China market and be successful. One of them is to
partner with a strong domestic additive manufacturer. The other option
is to provide value-added services such as refinery economics exercises,
training workshops for refinery personnel on the advantages of using CF
over kerosene as well as joint R&D exercises. These services will go a
long way in building relationships with refineries, which is the
cornerstone of success in the diesel additive market in China.
Key Topics Covered:
1. Executive Summary
2. Diesel Regulations In China For Conversion From China IV To China V
And China VI
3. China Diesel And Kerosene Outlook To 2020
4. Lubricity Improvers - Market Assessment
5. Lubricity Improvers - Value Chain Assessment
6. Lubricity Improvers - Competitor Assessment
7. Cold Flow Additives - Market Assessment
8. Cold Flow Additives - Value Chain Assessment
9. Cold Flow Additives - Competitive Assessment
10. Conclusion
11. Growth Opportunities And Companies To Action
12. The Last Word
13. Appendix
Companies Mentioned
For more information about this report visit https://www.researchandmarkets.com/research/lk8whm/growth?w=4
View source version on businesswire.com: http://www.businesswire.com/news/home/20180104005851/en/
Copyright Business Wire 2018
Source: Business Wire
(January 4, 2018 - 10:46 AM EST)
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