Global Specialties of Lube Oil Refinery Market - 2021-2028

Global Specialties of Lube Oil Refinery Market - 2021-2028

Market Overview

The global specialties of lube oil refinery market size was worth US$ XX million in 2020 and is estimated to reach US$ XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).

Most lubricating oils are manufactured from petroleum or crude oil. For extraction of lubricating oil from crude oil, it must be sent through a refinery. The refinery takes a lot of molecules of various structures that can be used for different things, from crude oil. Lube oil refining processes produce various specialties such as white mineral oil, rubber processing oil, slack wax, microcrystalline wax, paraffin wax and others.

Slack wax is produced as a by-product of the oil refining process. The material is produced by chilling and solvent filter-pressing wax distillate. It works as feedstock and is further refined and blended to produce value-added wax products. World lube base oil demand moves from Group I to Groups II and III as environmental and performance specifications become more restrictive.

Market Dynamics

The global specialties of lube oil refinery market growth are driven by the demand for FDA-approved food & beverages mineral oils.

Demand for FDA approved food & beverages mineral oils

The growing food industry has raised severe concerns over low-grade mineral oils, considered toxic and may affect human health. Food grade mineral oils are refined and are safe for use in the food industry. Food grade white mineral oils are refined oils derived from petroleum base oils free of aromatic species and paraffin wax and heterocyclic hydrocarbon compounds containing oxygen, sulfur and nitrogen.

Food-grade white mineral oils satisfy the stringent requirements of U.S. FDA regulations in 21 CFR 172.878. The food-grade lubricants are classified as NSF 3H materials, making them suitable for adoption in applications where immediate contact with food by the oil is often intended.

The material is also categorized as NSF H1 materials, making them suitable for usage in applications where unplanned contact of the oil with food can occur. Food grade white mineral oils are the preferred base fluid for blending NSF H1 lubricants, suitable for lubrication in food processing equipment where accidental food contact occurs. White oil is usually utilized in plastic manufacturing. Food service cups, utensils and packaging are all produced with white oil.

Rising concerns of crude oil on environment and human health

The rising concerns of crude oil on the environment and human health is restraining the specialties of the lube oil refinery market. Crude oil, being the origin of paraffin wax, is regarded as highly unsustainable because it is a non-renewable resource. It has also been the root of many environmental calamities, oil spills and climate change. Paraffin is a petroleum waste product that must be deodorized and chemically bleached before making it into the wax.

Today, the market has extensive applications of petroleum-based paraffin wax in candles, wax paper, polishes, cosmetics and electrical insulators, among other commercial items. Today, most candles are manufactured from paraffin wax, which produces highly toxic benzene and toluene when burned. The toxins released from paraffin candles are identical to those found in diesel fuel fumes and are associated with asthma and lung cancer.

COVID-19 Impact Analysis

The market for specialties of lube oil refineries was hindered by the shortage of raw materials and a hike in the prices. According to the Global Energy Agency report, global oil demand was down by almost 30 million barrels per day due to the pandemic situation. The production of lube oil has also been hampered in various countries, impacting the production of specialties manufactured from the refining. The market is impacted by the less demand from the end-user industry. For instance, Consumers are spending less on cosmetic products than usual, negatively impacting the demand for waxes. The global beauty industry revenues had fallen 20 to 30% in 2020.

Segment Analysis

By type, the specialties of the lube oil refinery market are segmented into slack wax, fully refined paraffin wax, white oil, semi-refined paraffin wax, rubber processing oil, petrolatum wax, microcrystalline wax and others.

Need for producing further refined waxes is boosting the sales for slack wax

Slack wax is a blend of oil and paraffin wax originating from crude petroleum oil. Slack Wax oil content can range from 10% to 30%. Slack wax is generated during the production of Group I lube base oil. During Group I lube base oil production, the feedstock has to go through a solvent extraction process to extract aromatics and the resultant product is called raffinate. The raffinate is then diluted with a solvent like methyl-ethyl ketone to reduce viscosity and enhance low-temperature filterability. The traditional usage of Slack Wax is in the generation of fully refined paraffin wax.

Slack wax has a relatively high oil content and is processed further to produce refined waxes. As a result, most slack waxes do not satisfy FDA requirements for food packaging. Slack waxes are utilized in the production of an extensive range of products, including wax emulsions, matches, glass wool, construction board and textile treating, synthetic firelogs, inks, weed bars, matches, carbon paper, composite wood panels, chemicals & fertilizers, candles, arena footing, soil or turf protection, polishes and fireplace products.

Geographical Analysis

Growing need from the cosmetics industry is boosting the market in Asia-Pacific

Asia-Pacific is a significant growth contributor in the production and consumption of the paraffin wax market. The increasing demand for beauty products and the concern for good appearance have led to a significant rise in cosmetics market. Escalating demand for cosmetic products in the region boosts the demand for lube oil refinery products specialties. For instance, in 2020, the retail sales of cosmetics by wholesale and retail companies in China reached US$ 53 million (340 million yuan), which indicates a fourfold increase in cosmetics sales since 2010.

Moreover, the specialties products are extensively used for manufacturing candles in the region. Today, candles in China are very popular, particularly during the holiday season. In 2019, the top exporters of Candles were China (US$ 702 million) and Vietnam (US$ 304 million). Moreover, waxes are most commonly used as a barrier in building materials. Petroleum-based waxes, such as paraffin and microcrystalline, offer natural hydrophobic properties. When the waxes are applied to materials ranging from MDF to OSB, it builds a moisture barrier that protects against water damage. The waxes can also be applied to a wide range of construction and building materials and used for many purposes such as green board products, Drywall, PVC manufacturing, gypsum board and concrete curing.

Competitive Landscape

The global specialties of the lube oil refinery market are moderately competitive with the presence of local and global companies. The products are utilized in various daily-life applications. In addition, some of the players contributing to the market's growth are Royal Dutch Shell plc, HCI Wax, Paraffinwaxco, Inc., Raha Paraffin Company, PetroChina, The Global Group Inc, Neste, Exxon Mobil, Industrial Raw Materials LLC, Clarion Lubricants and others. The players are adopting new strategies to dominate the market, such as acquisitions, expansions and collaborations, contributing to the global growth of the specialties of the lube oil refinery market.

Royal Dutch Shell plc

Overview: Shell is a global energy company working in exploring, producing, refining and marketing oil and natural gas and manufacturing chemicals. The company operates in over 70 countries globally, with an employee strength of 87,000. The company supply advanced transport, heating and industrial fuels to corporate and distributing companies in many industries globally, including manufacturing, transport, mining, power generation and home energy.

Product Portfolio: The company offers various slack waxes to manufacture candles, emulsions, petroleum jelly and other applications.

Key Development: In 2017, Shell Eastern Petroleum Ltd started producing two new wax products, Slackwax 120 and Slackwax 60, at its Pulau Bukom manufacturing site in Singapore. The company intends to manufacture over 60 kilotons of these products annually, serving customers in Europe, Asia and U.S.

Why Purchase the Report?

Visualize the global specialties of lube oil refinery market segmentation by oil, type, end-user and region, highlighting the key commercial assets and players.

Identify commercial opportunities in the global specialties of the lube oil refinery market by analyzing trends and co-development deals.

Excel data sheet with thousands of data points of global specialties of lube oil refinery market-level 4/5 segmentation.

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the key product of all major market players

The global specialties of lube oil refinery market report would provide an approximate 61 market data table, 62 figures and 180 pages

Target Audience

Raw Material Providers

Buyers

Refinery Companies

Lubricating Oil Companies

Construction Companies

Industry Investors/Investment Bankers

Education & Research Institutes

Research Professionals

Emerging Companies

Distributors