Exxon Mobil Leads Price Increases in Lubricants

On May 16, 2017, ExxonMobil (China) Investment Co., Ltd. said in a letter to Exxon Mobil lubricants dealers that " Mobil lubricants has decided to use lubricants for all products starting from July 1, 2017. The line will be adjusted accordingly. We will, as always, minimize the impact on the market and business, absorb some of the costs and strive to control the price adjustment within 4% to better support the steady growth of the market."

Another learned from the US market channel that Wins and Shigo announced that they will increase the price of lubricants in the near future. From June 1, 2017, the price of Lubricant's lubricants products has been raised by 4%, and Chigo has increased prices by 4%-6% from May 15, 2017. In recent weeks, the price hike of lubricants has continued to fluctuate, including Shell, Phillips 66, Mobil, Chevron, and BP Castrol. The general increase is between 3% and 9%.

This is the second increase in the price of lubricants brand since 2017. The reasons are related to the increase in the prices of raw material base oils and additives, the increase in the price of lubricant packaging materials, and the increase in the cost of logistics transportation.

As a global leader, ExxonMobil will increase the price of its lubricant product line and will have a significant impact on the Chinese lubricants market in the second half of 2017. For the raw material market, with the arrival of the off-season demand in May and June, the base oil market was relatively sluggish, the turnover was small, the trading performance was unsatisfactory, and the terminal did not buy high-risk lubricants. As a result, the demand for raw materials decreased. The market is in the doldrums; for the terminal, with the increase in the price of lubricants, terminals such as auto parts and chemical products are expected to increase in price. For oil lubricants, 2017 is a very critical year. Continuously enhancing brand value and improving product quality is still the key to the private oil companies' breakthrough in this surge of prices.

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