Lubricant additives: Feedstocks
Why base oil makes up so much of an additive
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.Additives are made from petrochemicals (isobutylene, maleic anhydride, amines, alkylphenols, olefin copolymers), metals (zinc, calcium, magnesium, molybdenum) and phosphorus and sulphur, and are shipped diluted in base oil. Raw materials are a large share of cost and pass-through lags by one or two quarters, which drives margin swings.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Oil Crude oil | diluent oil often 30-50% of product (indicative) | carrier and building blocks | largest (indicative) | NewMarket 10-K (raw materials list); indicative |
| Zn Zinc | zinc about 8-10% of ZDDP (indicative) | ZDDP anti-wear | not published | indicative; zinc tile (zinc oxide and chemicals 9% of zinc use) |
| S Sulfur | not published | ZDDP, sulphonates, EP additives | small | indicative |
| P Phosphate rock | not published | ZDDP, phosphate esters | small | indicative |
| Mo Molybdenum | not published | friction modifiers (MoDTC) | small | molybdenum tile |
| CaO Lime | not published | calcium detergents | small | indicative |
Who is low-cost, and why
The big four compete on technology and certification rather than cost; Chinese suppliers compete on price in components and lower-tier packages.