What is the investment prospect of the lubricating grease industry market? The working principle of lubricating grease is that the thickener keeps the oil in the position where it needs to be lubricated. When there is a load, the thickener releases the oil, thereby providing lubrication. The vast majority of lubricating grease is used for lubrication, known as antifriction grease. Anti friction lubricating grease mainly plays a role in reducing mechanical friction and preventing mechanical wear. At the same time, it also plays a protective role in preventing metal corrosion and sealing and dust prevention. Some lubricating greases are mainly used to prevent metal rust or corrosion, and are called protective greases.

Lubricating grease is used for the friction part of machinery, playing a role in lubrication and sealing. It is also used on metal surfaces to fill voids and prevent rust. It is mainly composed of mineral oil (or Synthetic oil) and thickener. According to thickening agents, they can be divided into two categories: soap based lipids and non soap based lipids. The thickener of soap base grease is usually Metallic soap such as lithium, sodium, calcium, aluminum and zinc, and also Metallic soap such as potassium, barium, lead and manganese. Graphite, carbon black, asbestos and synthetic ones (such as polyurea base and bentonite) are used as thickeners of non soap base grease, which can be divided into general grease and special grease according to their applications. The former is used for general Machine element, while the latter is used for tractors, railway locomotives, marine machinery, petroleum drilling machinery, valves, etc. The main quality indicators are drip point, penetration, ash content, and moisture content.

The variety and grade of lubricating grease are complex, and the classification work is very important. The GB501-65, which was originally classified according to thickeners, is no longer suitable for the development and use of lubricating greases and was announced to be discontinued on April 1, 1988. GB7631.8-90 specifies a system for classifying Tebos lubricating grease according to usage requirements. This classification system effectively adopts the ISO classification method and has replaced GB501-65. The production, sales, and use of lubricating greases have not yet been fully included in the new classification system.

The main raw material of lubricating grease, the price of second/third line base oil, has increased, and the price of third line base oil has gradually increased from 4050 per ton to 4150 per ton, until 4550 per ton. The price of second tier base oil has gradually increased from 3800 per ton to 4000 per ton. The slight increase in base oil prices this time may affect the price increase of lubricating grease by between 200 to 500 yuan per ton (depending on the product type).

The lubricating grease industry chain in China is relatively clear, with the upstream raw materials of lubricating grease being base oil, thickeners, additives, and fillers. The midstream focuses on the production of lubricating grease, while the downstream industries focus on the application fields of lubricating grease, mainly including lubrication of rotating bearings such as industrial machinery, automobiles, door hinges, metal pipeline joints, rust prevention of planing saw surfaces, metallurgy, textiles, etc.

After years of rapid growth, the Chinese economy has become the world's second largest economy and the engine of global economic growth. With the rapid development of China's economy, the acceleration of industrialization process, and the continuous growth of automobile ownership, China has become the world's largest consumer and producer of lubricating grease. The proportion of annual demand to the total global demand for lubricating grease has increased from 10.15% in 2017 to 22.6% in 2022.

The continuous rise in international crude oil prices is the root cause of the rise in lubricant prices. Then look at the Lithium hydroxide grease, which has become the root cause of the soaring price in the grease industry! In the past 2021, the lowest price of Lithium hydroxide is even less than 40000 per ton! The price has now remained above 360000 per ton, and there is a trend towards approaching 400000 per ton. The increase is close to breaking through 10 times! The price increase has led to an upward trend in the market size of the lubricating grease industry.

According to the data, the market size of grease used in China Steel's steel industry is 522 million yuan, 625 million yuan in 2020, and 697 million yuan in 2021.

The continuous rise in international crude oil prices is the root cause of the rise in lubricant prices. Then look at the Lithium hydroxide grease, which has become the source of the soaring price of the grease industry!, The lowest price of Lithium hydroxide is even less than 40000 per ton! The price has now remained above 360000 per ton, and there is a trend towards approaching 400000 per ton. The increase is close to breaking through 10 times! The price increase has led to an upward trend in the market size of the lubricating grease industry.

For the demand market for steel lubricating grease, 2021 is a very extraordinary year for the steel industry. Firstly, there has been a significant adjustment in the national industrial policy, which has led to the implementation of; Production capacity and output; Double control, cancellation of steel export tax refund; Carbon peaking and carbon neutrality; Target launch; The second is ultra-low emission transformation and energy consumption; Dual Control; Strict assessment and difficulties in ensuring production factors; Thirdly, the domestic and international markets are highly volatile, with significant fluctuations in commodity prices and a complex market environment.

In the composition of lubricating grease, the base oil determines the basic properties of the grease, and additives are used to compensate for and improve the shortcomings in the performance of the base oil. Lubricating oil manufacturing is in the middle position of the industry chain, and market changes in upstream base oils and additives as raw materials will affect the production costs of the lubricating grease industry.

Lubricating grease is an indispensable and important product in the steel industry. In 2020, the market size of lubricating grease was 625 million yuan, and in 2021, the market size reached 697 million yuan. The production demand for lubricating grease is predicted to be around 80000 tons in 2022. With the continuous increase in the cost and material prices of lubricating grease, the profit margin of lubricating grease will be compressed.

The continuous rise in international crude oil prices is the root cause of the rise in lubricant prices. Lithium hydroxide grease used in steel industry has become the root of the soaring price of grease industry! In the past 2021, the lowest price of Lithium hydroxide is even less than 40000 per ton! The price has now remained above 360000 per ton, and there is a trend towards approaching 400000 per ton. The increase is close to breaking through 10 times! The price increase has led to an upward trend in the market size of the lubricating grease industry.

The research report on the lubricating grease industry aims to start with the national economic and industrial development strategy, predict the market prospects of future business, and help customers overcome policy fog and find investment opportunities in the industry. On the basis of extensive analysis and prediction, the report on the lubricating grease industry studies the future development and investment strategies of the industry, providing enterprises with insights into the fierce market competition, timely adjusting business strategies based on the market demand of the lubricating grease industry, and providing accurate market intelligence information and scientific decision-making basis for strategic investors to choose appropriate investment opportunities and the company leadership to make strategic planning.

At present, the lubricating grease industry has a huge market space in China. For more detailed analysis of the industry, please click to view the "2018 2024 Risk Investment Situation and Investment and Financing Strategy Guidelines Report for the Lubricating Grease Industry" published by China Research Institute.

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