Vehicle electrification will not hamper lube demand, as hybrids will require base oils to function, delegates heard at the UNITI technical conference.
Hybrid vehicles will not cease to be significant after electrification, aid Lubrizol's technology manager Matthew Robin, with hybrid production likely to overtake that of internal combustion engine (ICE) vehicles by the end of this decade.
This will support demand for base oils, as hybrid vehicles require original equipment manufacturer (OEM) approved lubricants to reverse wear on engines and improve lifespan. The lifecycle of hybrid engines is affected by a clear increase in the amount of oil-water formation in comparison with ICEs, said Robin, which can lead to fuel degradation.
Gasoline direct-injection deposits can be minimised with additives, he said, and hybrid passenger cars will both assist electrification and expand the need for approved Group III base oils.
Prices for fully approved Group III grades are stable. But limited buying interest and readily available supply of semi- and non-approved grades are putting downward pressure on prices. Argus-assessed 4cst Group III prices for semi-approved grades fell by 6.8pc from the end of May to $1,705/t at the end of June. Fully approved 4cst spot prices slipped by 0.7pc to $2,005/t in the same time.
