On the one hand, the lubricating oil industry has a weak bargaining power to the downstream raw materials industry. The raw materials for the consumption of oil products are very difficult to have alternatives, and the prices of these raw materials are mainly affected by the price of crude oil. On the other hand, the lubricating oil companies are not capable of negotiating prices in the downstream industry. The downstream industries of the lubricating oil industry are automobile, metallurgy, shipbuilding, aerospace and other industries. At present, there are many lubricants companies in China, the level of product homogenization is relatively high, and the industry competition is fierce. The price of lubricant products is mainly affected by the supply and demand changes of the industry.

Analysis of factors affecting the opening of China's lube oil industry

1. favorable factors

(1) good policy benefit

With the appearance of "planning Chinese 2025 manufacturing strategy, China high-end equipment manufacturing industry ushered in the opening new opportunities, with the appearance of" planning China 2025 manufacturing strategy, China high-end equipment manufacturing industry ushered in the opening of the new opportunity, by China high iron and Chinese nuclear power leading high-end equipment manufacturing industry in the country "go out" strategy in stride. As a necessary industry to open the high-end equipment manufacturing industry, the lubricating oil, called "blood flowing in the manufacturing industry", has played a huge role. The emergence of this plan has brought rare opportunities and challenges to the lubricating oil industry.

(two) the demand of the automobile industry

By the end of 2015, there were 279 million vehicles in our country, of which 172 million were cars. After estimating the car industry, the industry will still adhere to the growth situation. Throughout the whole car industry, from the traditional repair plant to today's professional maintenance shop, the lubricating oil occupies an important position. Benefiting from the opening of the automobile industry, the lubricating oil industry will grow steadily.

(three) high demand for lube oil

In recent years, the demand for high quality lubricating oil in China accounts for the increase of all the demand for lubricating oil year by year, reaching 25.9% in 2014. High quality lubricating oil to gradually replace the original low-end products, become secondary select all kinds of terminal users, the reasons include: first, the level of equipment manufacturing industry, the demand for rapid promotion, a large number of fine automation equipment with high quality and characteristics of oil products to ensure its effective operation; second, the level of China's oil industry promotion, just can provide lubrication all kinds of oil products of high quality, characteristic and difference for the terminal customers; third, at the policy level, the country to promote the rational concept, proposed after choosing high quality lubricating oil products increased due to various losses incurred by improper lubrication, promotion of economic benefits.

(four) promotion of industry concentration

With the decline of demand in the frontier lubricants industry, many scale lubricants enterprises further expand their industry share, occupy the commanding heights and mainstream position of the industry, and cause the brand concentration of the whole industry will be higher and higher. With the centralization of the brand of the lubricating oil industry, a new opening opportunity for the preemptive brand of the Chinese lubricating oil is brought. Due to the promotion of lubricating oil technology, frontier and foreign brands in product quality and function more and more homogeneous, and the lubricating oil customers under the new economic norm becomes more and more emotional, Chinese in the oil industry, limit Chinese brands and foreign brands in the Great Wall and Kunlun as the representative of the manufacturing scope is being broken. In the high-end equipment, the Great Wall lubricating oil China local brands and international brands had gradually formed peer battle format.

2. adverse elements

(1) poor quality oil is common

As the industry has many brands of lubricating oil, the quality of the lubricating oil is uneven. Because the cost of impersonating the brand lube oil consumption is low, the inferior line consumption only needs to be attached to the brand name brand, the price can be doubled. Selling profit space for many criminals.

(two) industrial lube oil is affected by economic and policy

With the Chinese economy into the new normal, micro economic growth decline, and oil related industry center industry high degree very generous atrophy, industrial restructuring and the elimination of backward production capacity, high-grade products caused by the popularity of the oil change period extends deep influence on Chinese lubricating oil industry scale attack. In the lube industry, the relationship between industrial lubricants and coal, steel, cement and other heavy chemical industries is closely related, which is greatly influenced by the industry side side reorganization, the elimination of high energy consumption and backward production capacity, and the demand is increasing.

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