HS Code:
Lubricating oils and greases, with or without additives, fall under the Harmonized System (HS) Code 2710.19 for petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations containing by weight 70% or more of petroleum oils. This category includes a wide range of products such as engine oils, industrial lubricants, hydraulic fluids, and greases used in automotive, industrial, and marine applications. These products are essential for reducing friction, protecting machinery, and ensuring operational efficiency across various sectors. The global trade of lubricating oils and greases is influenced by industrial activity, automotive production, and energy sector demands, with significant variations based on regional manufacturing capabilities and regulatory standards for environmental impact and product specifications.
Total Trade Volume
USD 60.5 billion
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
USD 10.2 billion
16.9% of total trade of total trade
Increasing
USD 7.8 billion
12.9% of total trade of total trade
Stable
USD 5.3 billion
8.8% of total trade of total trade
Increasing
USD 4.9 billion
8.1% of total trade of total trade
Stable
USD 3.6 billion
6.0% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
12% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements such as EU internal trade or USMCA)
Shift towards synthetic and bio-based lubricants
Increased demand for environmentally friendly products due to stricter regulations on emissions and waste disposal, driving innovation and higher production costs but opening new market segments.
2021-2023
Growth in electric vehicle (EV) market
Reduced demand for traditional engine oils but rising need for specialized lubricants for EV components such as batteries and transmissions, reshaping market dynamics.
2022-2023
Industrial automation and Industry 4.0
Higher demand for high-performance industrial lubricants to support advanced machinery, particularly in Asia-Pacific manufacturing hubs, boosting trade volumes.
2020-2023
The European Union introduced stricter regulations under the Green Deal framework, mandating lower carbon footprints for lubricant production and usage, including limits on certain additives.
January 2023
Increased compliance costs for exporters to the EU market, but also opportunities for producers of sustainable and bio-based lubricants to gain market share.
Ongoing trade disputes have led to tariffs on certain lubricant additives and base oils traded between the US and China, prompting supply chain diversification.
Mid-2022
Higher costs for manufacturers reliant on Chinese additives, with a shift towards alternative suppliers in Southeast Asia and Europe.
Singapore has invested in refining and blending facilities, reinforcing its position as a key exporter of lubricating oils in the Asia-Pacific region.
October 2022
Increased trade volume through Singapore, benefiting regional markets but intensifying competition for traditional exporters like the US and Germany.