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According to a recent report by Kline & Company – a global consulting and research firm, the metalworking fluids market accounts for approximately 6% of the total estimated 38 million tonne global lubricants market. Significant contractions in automotive and metals production as a result of the global economic crisis has led to depressed metalworking

Robust growth for metalworking fluidsExtrapolating the outlook of the metalworking fluids industry on the basis of emerging demand, innovation and technology trends, this feature analyses the latest challenges from the viewpoint of industrial coolants & lubricants experts.

fluids demand. However, the recent rebound of the automotive industry, has brought a significant uptick in demand for metalworking fluid products. Going forward, such market drivers including regulation, application, and innovation is expected to have an impact on the metalworking fluids industry. From a volume standpoint, the report predicts a

Srimoyee Lahiri Sub-editor & Correspondentsrimoyee.lahiri@publish-industry.net

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lubricants industry.“The market for metalworking fluids constitutes 15% by

sales value of all industrial oils put together. The US as a region is the leading consumer with 36% of the global consumption followed by Asia which consumes about 30% and the Europe. The market is complex with a variety of applications, changing trends and market developments,” says Tridib Majumdar, Industry Business Manager — Metalworking, Quaker Chemical India.

The per capita lubricant consumption in India is quite low compared to developed countries. However, even a comparison with other developing countries like China and Indonesia reveals that there is a significant potential for growth in lubricant consumption in India. Kline projects that the overall lubricant consumption in India will grow at an annual rate of 2.5% over the next five years. The commercial and industrial lubricant segments will exhibit a moderate growth of 2.3% and 1.6% per year, respectively. Detailing on the lubricants in the country, Shankar Karnik, Asia Pacific Mobil SHC Brand

growth rate of 3%, but this will not be enough to compensate for the significant volumes lost in the previous years. However, from a revenue perspective, robust growth is anticipated from increased interest in higher quality metalworking fluids such as synthetics, semi-synthetics/synthetic blends and water soluble products. China, India, South Korea, Indonesia, Thailand, Japan, Russia and Brazil are expected to be the growth engines of the industry in the near future.

Market drivers for coolants & lubricants

The market for metalworking is large and challenging. A report by Kline & Company suggests that industrial lubricant is the largest market segment in India, accounting for over 54% of the total market. Rapid expansion of the power generation and distribution infrastructure has created a strong demand for transformer oil in India. Industrial engine oil (including marine and railroad), metalworking fluids and hydraulic fluids are also important product categories to contribute growth in the

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Manager, ExxonMobil Lubricants, suggests that the industrial lubricant market in India has grown significantly owing to strong growth through green field projects, capacity expansion and upgrading to new technology in key sectors like energy, manufacturing, process and metals. In the last decade an increasing number of customers are demanding superior performing, high technology products to deliver sustainability benefits.

Trends in consumption of metal working fluids in India

Tougher metals, more advanced, severe metalworking processes and the ongoing drive by machine shops to increase productivity and reduce costs has seen the importance of cutting fluids rise up in the agenda of metalworking operators in recent years. “The metalworking industry continues to go green as more shops adopt vegetable-based coolants and implement recycling programmes. To reduce overhead costs, more shops are investigating in new ways to reuse their coolant rather than dispose it, including new coolant recycling programmes that can reduce coolant waste and increase sump life. There are two classes of cutting fluids — water soluble (aqueous / water miscible) and neat (straight). While water soluble cutting fluids are used in a number of machining operations and are provided in a concentrate form and must be diluted with water at the machine shop site before use, neat cutting oils are not mixed with water and are provided in packs

for immediate use. These are used in applications which are beyond the typical performance profile of water soluble coolants, such as tapping and threading of high alloy steels”, avers Karnik. “With the advent of global automobile companies in India post early ’90s, there has been growth in the use of water miscible oils primarily with the advent of CNCs, a transfer of best practice from the parent locations due to an advancement in maintenance practices. However, till the end of 90s use of water soluble oils was more in vogue with sump lives lasting 3

– 4 months. The early 2000s saw the entry of global metal working fluid companies like – Blaser, Quaker, Fuchs, etc, who started promoting the concept of longer sump lives in excess of 12 -18 months with the use of semi-synthetic and synthetic oils. Total costs of ownership, waste disposal, health, safety, reduction in water and energy consumption are the challenges faced by the industry. Suppliers who will be able to formulate products that address these issues through the use of different technology, use of non-carcinogenic ingredients, products that do not require heating, etc will have a competitive advantage in the years to come”, says Majumdar.

Research & development

To ensure that the machine tool runs smoothly, it is important to choose a combination of high-quality lubricants – slideway oils, water soluble cutting fluids and neat cutting oils.

“Our company devotes significant resources to product research and development. We use an advanced, scientifically engineered

“Industrial lubricant market in India has grown significantly owing to strong growth through green field projects, capacity expansion and upgrading to new technology” Shankar Karnik, Asia Pacific Mobil SHC Brand Manager, ExxonMobil Lubricants

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‘balanced formulation approach’ that leverages the company’s leading technology and application expertise. This comprehensive process enables us to develop lubricants that deliver exceptional performance across all critical areas for each application - such as oxidative stability, component wear protection, corrosion control, filterability, shear stability and extreme temperature performance,” affirms Karnik.

He further says that every new technological development is backed by continuous challenges in the industry. “With our relationship with equipment builders, we closely monitor the trend of technology development on the equipment side so that we are geared to deliver the right product, which will cater to this requirement in the industry.”

Innovations in coolants & lubricants

Technology is evolving and new energy efficient technologies are contributing to reduce energy demand. Industrial experts talk about a fleet of innovations offered by the metalworking industry. “Mobil Grease brand of high performance industrial greases and a host of other lubricant products supported by technical services deployed through our expert network of engineers deliver enhanced productivity with safety and environmental protection” avers Karnik. The latest in the offing from Exxonmobil are slideway oils, water soluble cutting fluids and neat cutting oils among others.

On the other hand, Majumdar elaborates on the four distinct applications in metalworking – removal, forming, protecting and treating, removal and forming that cover almost 85% of the

applications. “The complexity of the applications is compounded by the variety of metals that where these applications are being done. Metalworking oils for removal applications depend on the speed and depth of operation, cutting tool type, operator preference, health and safety issues. Metalworking oils for removal applications are of two different types – straight oils or water–miscible oils. Straight oils are formulated from petroleum base stock and fortified with friction modifiers, extreme pressure and corrosion inhibiter additives. Water miscible oils include soluble, semi synthetic or synthetic oils. When seen from a global perspective water miscible oils are use more in the Americas, followed by Europe and then by Asia”.

Future outlook

According to the report of Kline & Company, the metalworking fluids market is extremely fragmented with over 50% served by smaller players who are focused on particular end-use applications, geographic area or both. These smaller but well-established and trusted marketers potentially represent lucrative turn-key acquisition opportunities for strategic buyers not yet active in this business or those wishing to increase their market share. Kline confirms that the overall subdued economic growth of the Indian economy will continue to affect the growth of commercial automotive lubricants, although economic growth is expected to pick up after 2015. The report suggests that the next five years will be very different from the previous five. ☐

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“The market for metalworking fluid is complex with a variety of applications, changing trends and market developments” Tridib Majumdar, Industry Business Manager — Metalworking, Quaker Chemical, India

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