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The future of Africa’s Lubricants business

29 November 2021

The future of Africa’s Lubricants business

Mocoh’s Sudip Shayam spoke at the International Lubricants Conference (ILC) earlier this month.

Addressing a global audience dialling in for the virtual event, themed The Future of the South African Lubes Business, Sudip explained:

“We are beginning to see signs of global economic recovery following one of the most challenging years as a result of the COVID-19 pandemic. While things are looking more positive today for the Lubes sector, with prices and supply stabilising, the mid- to long-term outlook is far from plain sailing.

Sudip gave an overview of the global Lubes market before addressing some of the factors that have influenced on-going market uncertainty and that will impact recovery going forward.

“The extraordinary price hikes we saw in the second half of last year have eased up. However, many of the causes prevail. Numerous refineries are still not operating to full capacity or remain out of action, and the container and shipping industry continues to be very challenging.

“Although elevated crude prices have helped turn around prices of light neutrals and demand is gradually inching towards normality, with the transportation business still accounting for 24% of all GHG produced, there are other long-term influencing factors. The COP 26 effect and the accelerating transition to EVs will inevitably impact demand significantly in developed economies. Sustainability and transparency requirements are also increasingly becoming part of supply chain decisions and this will add complexity to all operations.

“The Sub Saharan Africa outlook is likely to flatten out to slight growth in some markets. The resurgence of Covid and its management will be critical to Lubes businesses in Africa.”

Over 120 participants dialled in for the ILC event. Attendees represented a cross-section of industry representatives, including manufacturers, buyers and vendors, and other stakeholders.

Mocoh was one of a handful of sponsors of the event.

To watch a video recap of the event, visit the ILC website: https://ilconline.co.uk/