Table of Contents
Lubricants Driving Efficiency in the Australian Mining Industry
The research methodology for this research service is a combined effort of secondary research and intensive primary research through in-depth discussions with industry experts. The Australian mining lubricant market experienced steady growth from 2010 to 2012 driven by the strong mining activities. The decreasing mining commodity prices in the global market have translated into low demand for mining lubricants during the forecast period between 2013 and 2019. This research service offers market revenue forecasts by major application segmentation: mobile plant mining lubricants and fixed (static) plant mining lubricants. Competitive analysis and market revenue share for top five companies has also been provided.
• Growth in the Australian mining sector has created strong demand for lubricants used on mobile and static equipment. Mining investment recovered relatively quickly from the global financial crisis, with investment in equipment, plant and machinery growing at an annual rate of Xto X% between 2010 and 2012. Newly installed machinery and operating plants have a demand for larger quantities of lubricants to maintain a normal working order and ensure a longer life.
• In general, mining technologies in Australia are advanced as per the world standards with significant use of heavy machinery. Heavy duty machinery requires high performance lubricants that can withstand high temperature and pressure.
• The prices of lubricants are largely influenced by the global crude oil price movements. However, increased competition adds to downward price pressure.
• Biodegradable products are gaining customer attention, but only at a very slow rate. In the short-to-medium term, mineral oil-based products are expected to continue dominating the market.
• The global slowdown in demand for mineral resources is expected to lead to slower mining sector investment, hence a slower growth in lubricants over the forecast period.
• Direct sales is the main channel to the market. However, distributors are often used by smaller suppliers or new market participants.
• The market is concentrated, dominated by five leading suppliers. The global industrial lubricants leader BP is also the largest supplier in the Australian mining lubricant market.
• Three tiers of competition exist in the market: leading international oil companies, specialised lubricant suppliers and new market suppliers targeting small-to-medium customers and supply shortfall situations.
• The challenges of penetrating the Australian market include the presence of highly entrenched market leaders and the difficulty in persuading customers to switch products.
• Owning the necessary product certification is insufficient for gaining customers’ confidence. Often a successful track record in overseas projects is recognised by customers. Return-on-investment is crucial for customers in choosing higher cost lubricant products.
1. The Australian mining lubricants market is expected to grow steadily.
2. The reduced number of new mining projects limit business opportunities.
3. Performance and return-on-investment are priorities for customers.
4. Sustainability is becoming an increasingly valued concept among customers.
5. Price increases are kept under check due to low cost suppliers entering the market.
Key Questions this Study will Answer
Is the mining lubricant market growing? How long will it continue to grow, and at what rate?
What are the market drivers and restraints, and what is the forecast growth potential of the market?
Who are the key market participants/competitors, and what are their relative market shares?
What is the route to the market?
Are the existing competitors structured correctly to meet customer needs?
How the pricing scenario would be during the forecast period given the competition scenario and feedstock supply?
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