WHAT IS IT?
Base oil is the primary ingredient in lubricants, making up 70–99% of the finished product. Additives are blended into base oil to create engine oils, gear oils, hydraulic fluids, and greases.
API GROUPS
Group I: Solvent-refined, lowest quality, higher sulphur content. Still widely used in industrial applications. Produced mostly in Asia.
Group II: Hydrotreated, lower sulphur, better oxidation stability. Most common globally.
Group III: Severely hydrotreated or hydrocracked. Near-synthetic quality. Used in premium passenger car motor oils.
Group IV: Polyalphaolefins (PAO) — fully synthetic.
Group V: All others (esters, naphthenic oils, etc.)
GRADES BY VISCOSITY
SN100 / SN150: Light viscosity, used in spindle and turbine oils
SN300: Medium — general industrial lubricants
SN500: Heavy — gear oils, greases
SN600 / SN700: Very heavy — specialty applications
KEY USES
Automotive engine oils (blended with VI improvers, detergents, antiwear additives)
Industrial gear and hydraulic oils
Marine lubricants
Transformer oils
Grease manufacturing (base oil + thickener + additives)
TRADE CORRIDORS
Major producers: South Korea (S-Oil, SK), Middle East, Russia, India
Major buyers: Southeast Asia, Africa, China
Tetra relevance: South Korea → SEA/East Africa corridor. East Africa has growing lubricant demand driven by infrastructure and transport growth.
PRICING BASIS
Priced against crude oil with a processing premium. Group II commands premium over Group I. Regional benchmark: FOB Ulsan (Korea) or FOB Singapore.
SPECIFICATIONS
Kinematic viscosity at 40°C and 100°C
Viscosity Index (VI) — higher = less viscosity change with temperature
Flash point (min 180–220°C depending on grade)
Pour point (low pour point = better cold weather performance)
Sulphur content
Colour (ASTM D1500)