Recently, due to the escalation of the situation in the Middle East, international crude oil prices have risen sharply. Brent crude oil once approached $120 per barrel, and the cost of base oil has continued to increase. The lubricant industry is currently facing severe cost pressure and supply chain challenges.
The current sharp increase in oil prices has its core trigger being the disruption of shipping in the Strait of Hormuz, affecting approximately 20% to 30% of global crude oil transportation. Coupled with OPEC+ production cuts and low inventories, the supply gap has continued to expand.
The price of base oil has soared: The price of base oil, which is strongly linked to crude oil, has risen rapidly. The daily increase in the price of second-class base oil exceeded 300 yuan per ton, and the price of imported resources reached a new high in recent years.
The industry chain is under pressure: Base oil accounts for 60% to 80% of the cost of lubricants. Coupled with the simultaneous increase in additives, shipping, and packaging costs, industry profits have been significantly squeezed.
Supply-demand imbalance: Raw material supply is tight and prices fluctuate frequently. Companies are caught in a dilemma of "stabilizing orders" and "protecting profits".
As a source manufacturer with 20 years of experience in special lubricants, Baoxing has initiated a full-chain response plan. It prioritizes the stable supply to old customers and does not raise prices for a period of time, working with industry partners to weather the cycle:
1. Pre-positioning raw material reserves: Locking in high-quality base oil and additive inventories in advance, optimizing the supply chain, and reducing the impact of short-term fluctuations.
2. Optimization of production efficiency: Precise scheduling, strict control of losses, and using large-scale production and technical advantages to absorb some cost pressure.
3. Product structure upgrade: Guiding high-performance and long-life lubrication solutions to help customers reduce overall usage costs.
4. Upgrade of customized services: Providing exclusive formulas and lubrication solutions for industries such as industrial, automotive, and new energy, enhancing product value.
Short-term cost fluctuations are part of the industry cycle. Baoxing always prioritizes quality and puts customers first. We promise:
Not lowering product standards. All products strictly meet international certifications such as ISO and ROHS.Prioritizing supply to core customers and maintaining stable delivery cycles.
Continuous technological research and development to provide more efficient and durable lubrication solutions to help customers reduce costs and increase efficiency.
