This is just a discussion based on the writer’s opinion. Off course, there will be more and more different ones, but it is a good topic for discussion, isn’t it?
I. A Brief of Vietnam Engine Oil Market
BP Castrol has dominated Vietnam market, so the appearance of BP Castrol Engine Oil in term of color, smell, and API levels would have a big influence to the local blenders and others. The market share of BP Castrol is around 24%.
Petrolimex (PLC) is the second one with a market-share of ~ 14%. Shell, Total, Motul, Caltex and imported brands contribute 23% of total market. OEM Toyota, SYM, Suzuki, Honda, Yamaha account for 13%. The rest belongs to Vilube, Mipec, Mekong, Nikko, Indo-Petrol, and other local brands.
II. Base Oil and Additive Suppliers in Vietnam
II.1. Base Oil
More than 10 years ago, the market used recycle oil and group I base oil to blend the engine oil. Now, they switch into mainly Group II and gradually use Group III and Group IV (PAO). I have been involved in this market since Sept. 2016, and started to see the improvements for the local blenders.
However, there will be the minority of the oil blended from recycle oil + solid VM to make engine oil for Mekong Delta River, Central Highlands, and Northwest Vietnam.
II.2. Lubricant Additive Suppliers
BIG4 and their suppliers have already been here. The latest one is Infineum, and now is distributed by Brentag. AFTON, Lubrizol, Chevron Oronite have been here for long time.
Other lubricant suppliers from China, India also try to have a bit market share, but it is very hard for them. Most of the customers use those packages for low-tier products, which are cheap and competitive.
III. SAE Viscosity Grade
III.1. MCO
The majority of SAE Viscosity Grade is 10W-40, 15W-40 and 20W-50 with a widen API from SF to SN+. However, the big market share now is API SL, and API SN could dominate in the next few years.
There is a trend to make a lower viscosity grade such as 10W-30, 5W-30, but I think the market of those products is not quite big at this moment.
III.2. HDEO
SAE Viscosity Grade is 15W-40 and 20W-50 with a variety of API from CD to CI-4. Four years ago, the majority API is CF-4, but it started to switch into CI-4/SJ two year ago. The markets for CJ-4 and CK-4 have been not started yet, even though there are some products on market and they seem to be for marketing only.
Market for API CD focus on the second-hand Tractors, Forklift in Mekong Delta River, and others. API CF and CF-4 are used for small trucks and passenger diesel car. API CI-4/SL are applied for container trucks and fishing boats.
IV. Are API-registered Engine Oil Suitable for Vietnam Market?
This part shows my opinion, it is not really correct. Just please remember. Here I would like to discuss on HDEO market because it has the biggest market for engine oil. The trucks travelling from North to South with 2-way journey will run at least 3500 Km. API CF-4 and CI-4 mineral type (Group II) recommend around 5000 - 7000 Km and 10.000 - 14.000 Km in Vietnam, respectively. Therefore, the trucks must change the oil in several rounds.
IV.1. Lack of National Standards for API Registered Engine Oil
Frankly speaking, just global company such as BP Catrol, Shell, Total, Caltex, and big local blenders in Vietnam such as Petrolimex may need to register for it. The fee of registration and extension is not cheap as well. Then, the formula with base oil and the packages should be stable. BIG4 will recommend the formula using their packages with Exxon Mobil Group II/II+ EHC base oil, and GS Caltex may be an alternative. However, GS Caltex formula has a limited formula.
Vietnam government has no analytical way to identify whether any specific engine oil on markets meeting API or not. In addition, distinguishing API such as CF-4 and CI-4 is also an obstacle for the government. Vietnam government just controls the combustion engine oil based on National technical regulation on lubricating oils for Internal Combustion Engines QCVN14:2018/BKHCN. However, this just controls very basic parameters without API classification. Thus, there is no motivation for the blenders to register for API license.
IV.2. Market Demand for API-registered HDEO
Some blenders go for API license just in the case they want to make a tender for selling other oils along with engine oils (i.e., hydraulic oil, gear oil, turbine oil). The majority of market demands also does not care for whether the HDEO has API-registered marks or not. What they need is the oil must meet their satisfactions (e.g., cheap, good quality, no soft deposit, stable VI, fuel saving).
Carrying overload is also an issue having a big effect on the engine oil design. Normally, many trucks in Vietnam carry overload, and some of them often drives up the mountain and down to the city. Therefore, it dramatically deteriorates the engine oil quality. Then, the truck owners will prefer the oil, which is suitable for their running condition no matter of the API license. In most cases, the manufacturers will try to enhance the lubricity and EP performance by adding small percentage Friction Modifiers (i.e., Ashless Organic FM, or Mo-DTC) and some saturated Esters (e.g., Croda 3970, Kentjenlube 135/2700). For example, when adding the FM modifier into the oil with API-registered formula, there is not guarantee that the oil will meet the API standards anymore. Then, the blenders must to choose between re-apply for API license or not. However, it is good to use for local market, why do blenders spend money on that? Once the oils meet customers’ satisfactions, there is nobody caring about the API license anymore.
In summary, even though I think there is no need for the API registration for the engine oil, the local blenders should use BIG4 additive package to make the high quality and long-lasting performance for Vietnamese people.
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