Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel...
Transcript of Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel...
![Page 1: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/1.jpg)
Focused on Group III Base Oil
![Page 2: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/2.jpg)
Introduction
Backgrounds for Group III Base Oil
Past and Present of Group III Base Oil
Future (focused on Merchant Market)
Price Overview
Summary and Issues
Conclusion
![Page 3: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/3.jpg)
No.1 energy & chemical company in Korea
– largest refining capacity(1.1Mil B/D), market share and marketing network in Korea
Leading player in other major energy sector in Korea
– E&P, Refining & Marketing, Coal, City Gas & Lubricant
World largest Group III base oil manufacturer
– Hydro-Cracked / IDW /Hydro Treating Process– Total Capacity 950,000 MT/Y– 370,000MT/Y new capacity from mid 2008
![Page 4: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/4.jpg)
SK Corp.
SKTelecom
SKNetworks
OtherSubsidiaries
SK Holdings
Holding
Company
SKTelecom
SKNetworks
SK Energy
Operating
Company
OtherSubsidiaries
• Mixed Corporate Structure with
Businesses & Investment Securities
• Splitting into a Holding Company and
an Operating Company
Source: SK Corp. IR Dept.
Current Structure Holding Company Structure
![Page 5: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/5.jpg)
![Page 6: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/6.jpg)
API Category
Viscosity Index
Saturates(%)
Sulfur(%)
Group I 80-120 < 90 >0.03
Group II 80-120 ≥ 90 ≤ 0.03
Group IV PAO
Group V All others
Definition
• Inherent High Viscosity Index
• Excellent Low Temperature Performance
• Low Volatility, High Flash Point
• Excellent Thermal and Oxidative stability
※ Can be marketed as ‘Synthetic’
Features
![Page 7: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/7.jpg)
ItemASTM
MethodYUBASE 4 YUBASE 6 YUBASE 8
KV @ 40°C, cSt D445 19.6 36.9 47.0
KV @ 100°C, cSt D445 4.25 6.46 7.60
Viscosity Index D2270 123 130 128
NOACK Volatility, wt% D5800 14.7 7.1 5.0
Pour Point, °C D92 -15 -12 -12
Flash Point, °C D97 230 240 260
YUBASE Properties
![Page 8: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/8.jpg)
2000
Group III
Group II
Group I
25,000
20,000
15,000
10,000
5,000
30,000
[KMT]
2005
4%2%
2010
7~8%
2015
10~%
![Page 9: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/9.jpg)
Source: Lubes n Grease, 2006
![Page 10: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/10.jpg)
Introduction
Backgrounds for Group III Base Oil
Past and Present of Group III Base Oil
Future (focused on Merchant Market)
Price Overview
Summary and Issues
Conclusion
![Page 11: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/11.jpg)
![Page 12: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/12.jpg)
Legislation Consumers
OEMsLubricant
Manufacturers
Global Economy
![Page 13: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/13.jpg)
• Very Low Sulfur (≤ 0.03 %)
• Very High Viscosity Index (120 + )
• Excellent Low Temperature Performance
• Low Volatility
• High Flash Point
• Excellent Thermal and Oxidative stability
※ Can be marketed as ‘Synthetic’
Features
Group III Base Oils
![Page 14: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/14.jpg)
Introduction
Backgrounds for Group III Base Oil
Past and Present of Group III Base Oil
Future (focused on Merchant Market)
Price Overview
Summary
Conclusion
![Page 15: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/15.jpg)
1st
2nd
3rd(e)
![Page 16: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/16.jpg)
3rd(e)
2nd
1st
Small capacity for own captive use
Unaccustomed product
Doubts on investments
Economics of scale
Over-qualified quality
Lack of commercial formulation
![Page 17: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/17.jpg)
3rd(e)
2nd
1st
Demand has been well grown
To substitute PAO
As correction fluid blended with
Group I base oils
Formulation started to bloom
Commonly acknowledged
![Page 18: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/18.jpg)
1st
3rd(e)
2nd Formulation development accelerated
Demand is larger than Supply
in a short term
Demand differs by grades
Interests in future investments
![Page 19: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/19.jpg)
Introduction
Backgrounds for Group III Base Oil
Past and Present of Group III Base Oil
Future (focused on Merchant Market)
Price Overview
Summary
Conclusion
![Page 20: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/20.jpg)
S-Oil Petronas Neste
+5.5KBD
+7.5KBD
Meet the demand deficit
But, sudden oversupply?
Then, severe competition
Even against Group I/II/II+?
Quality Differentiation
GS Caltex
+3KBD
![Page 21: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/21.jpg)
+7.7KBD
Accelerating technical changes
Increasing commercial demands
Market expansion
S-Oil Petronas GS CaltexNeste
![Page 22: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/22.jpg)
GTLGTL
GTL base oils emerge ?
Group III+ Merchant market
GTL vs. Group III?
Destiny of Group IV & V?
GTL S-Oil PetronasNesteGS
Caltex?
+00 KBD
+0 KBD
+0 KBD
![Page 23: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/23.jpg)
Introduction
Backgrounds for Group III Base Oil
Past and Present of Group III Base Oil
Future (focused on Merchant Market)
Price Overview
Summary
Conclusion
![Page 24: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/24.jpg)
* Source: SK Corp, ICIS-LOR Report
100
300
500
700
900
1,100
1,300
Diesel
DUBAI
WTI
Group III Posting(US)
Group II+ Posting (US)
Group I (S’pore)
Group I Posting (US)
Group I (NWE)
Group I (Asia)
Group I (Europe)
[USD/MT]
Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May
‘04 ‘05 ‘06 ‘07
![Page 25: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/25.jpg)
100
200
300
400
500
600
700
800
900
1,000
Diesel
DUBAI
WTI
Group I (S’pore)
Group I (NWE)
Group I (Asia)
Group I (Europe)
[USD/MT]
Crude oil and fuel prices have
increased dramatically
Short supply of fuels & base oils
Competition on Production
Base Oil vs. Fuel
Concerns on pricing mechanism
Time Lagging Issue
* Source: SK Corp, ICIS-LOR Report
Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May
‘04 ‘05 ‘06 ‘07
Group III Posting(US)
Group II+ Posting (US)
Group I Posting (US)
![Page 26: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/26.jpg)
* Source: SK Corp, ICIS-LOR Report
May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May
‘06 ‘07
Diesel
DUBAI
WTI
Group I (S’pore)
Group I (NWE)
Group I (Asia)
Group I (Europe)
Group III Posting(US)
Group II+ Posting (US)
Group I Posting (US)
Crude oil/fuel prices fluctuated
Base oil prices increased
continuously
Short supply of base oils
Pricing mechanism was changed
Enjoyed hugh margins ever
![Page 27: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/27.jpg)
* Source: SK Corp, ICIS-LOR Report
100
300
500
700
900
1,100
1,300
Diesel
DUBAI
WTI
Group I (S’pore)
Group I (NWE)
Group I (Asia)
Group I (Europe)
[USD/MT]
Crude oil/fuel prices increased
Base oil prices have decreased
Domestic & Export prices differ
Balance or Surplus
Margins get squeezed
Group III Posting(US)
Group II+ Posting (US)
Group I Posting (US)
Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May
‘04 ‘05 ‘06 ‘07
![Page 28: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/28.jpg)
Demand
Specification changes
Opportunity cost
Competitive dynamics
Raw Material Costs
Competition against fuels
Supply
Cost
Value
New production
Turnaround
Disasters Economic growth
Car/Industrial market
Base Oil Prices
![Page 29: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/29.jpg)
0
50
100
150
200
250
300
350 Group III Premium
Group II+ Premium
[USD/MT]
* Source: SK Corp, ICIS-LOR Report
Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May
‘04 ‘05 ‘06 ‘07
![Page 30: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/30.jpg)
Importance of ‘Raw Material price’ has been increased
– Base Oil and Additive price for Lube blenders
– Feedstock price for Base Oil Manufacturers
Pricing mechanism get diversified
– Fixed price vs. Spot pricing vs. Using price indicators
Price Indicating System
– Prices of Crud Oils or Fuels
– Base Oil Prices on ICIS Report (US vs. Europe/Asia)
– Positive or Negative price circulation
– Any other options?
![Page 31: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/31.jpg)
Introduction
Backgrounds for Group III Base Oil
Past and Present of Group III Base Oil
Future (focused on Merchant Market)
Price Overview
Summary and Issues
Conclusion
![Page 32: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/32.jpg)
Demand is growing rapidly
Supply is catching up the demand step by step
Increased familiarity
Reasonable Price Premium
![Page 33: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/33.jpg)
Supply in the region
Demand in the region
Regional mismatch of supply & demand
![Page 34: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/34.jpg)
Supply in the region
Demand in the region
Regional mismatch of supply & demand
![Page 35: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/35.jpg)
Trends encourage new investments
- Technical trends require high quality base oils
- Economic trends for higher return
- Supply will over the demand in short term
![Page 36: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/36.jpg)
Technical DemandsProduction Capacity
Commercial DemandsTechnical Demands
Production Capacity
Commercial Demands
?Production Capacity Commercial Demands
![Page 37: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/37.jpg)
Economic Risks
Logistic Cost
− Shipping
− Tanks
R&D Cost
− Formulation
− Approvals
Marketing & Operating Cost
Cost Burdens
Feedstock Cost
Base Oil Price Movement
Competition against Fuel
Severe Competition
in high quality base oil market
− Group III Premium will be changed
− Full Production is the matter
Do you have enough CAPTIVE USE or PARTNER?
![Page 38: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/38.jpg)
Viscosity Index
Pour Point
Oxidation & thermal stability
Volatility
Viscosity Grades
![Page 39: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/39.jpg)
Viscosity Index NOACK
Expecting quality differentiation in Group III base oils
80
90
100
110
120
130
140
Gr-Ⅰ100N
Gr-Ⅱ100N
Gr-Ⅲ4cSt
New YUBASE4
PAO4
10
12
14
16
18
20
Gr-Ⅰ100N
Gr-Ⅱ100N
Gr-Ⅲ4cSt
New YUBASE4
PAO4
![Page 40: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/40.jpg)
Introduction
Backgrounds for Group III Base Oil
Past and Present of Group III Base Oil
Future (focused on Merchant Market)
Price Overview
Summary and Issues
Conclusion
![Page 41: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/41.jpg)
DemandSupply
Group I
Group II
Group II+
PAO
Group III
Group III
![Page 42: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/42.jpg)
Group III/GTL
DemandSupply
Group III
Oversupply of high quality
base oils could put Group III
in lower performance tiers
Oversupply may push
demand growth
Group I
Group II
Group II+
PAO
![Page 43: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/43.jpg)
DemandSupply
Group III
Increasing demand of high
quality base oils can put
Group III in premium tiers
in long term view
Group III/GTL
Group I
Group II
Group II+
PAO
![Page 44: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/44.jpg)
Group III base oil market will continue to grow
− Technical needs - Applications and regulations
− Marketing needs - Cost effective, Synthetic labeling
− Emerging new market
More competition is expected in high quality base oil market
− GTL and other new Group III base oil manufacturers
− Oversupply of Group III base oils might bring an impact on other tier market
![Page 45: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/45.jpg)
Leading Group III base oil manufacturer
- Production Quantity
- Product Quality
Customized Service Provider
- Logistics
- Technology
Supply Stability
Globalized & Localized Service
Long-term Relationship
Strategic Partnership
![Page 46: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/46.jpg)
Branch Office Storage Tank Agent/Distributer
Houston Tokyo
Jakarta
London
Tianjin
SK Corp.
![Page 47: Focused on Group III Base Oil · 2008-05-22 · 100 200 300 400 500 600 700 800 900 1,000 Diesel DUBAI WTI Group I (S’pore)Group I (NWE) Group I (Asia) Group I (Europe) [USD/MT]](https://reader033.fdocuments.in/reader033/viewer/2022042420/5f37635249442f5d1c0dcf4b/html5/thumbnails/47.jpg)