Last 5 years, the consumption of industrial lubricants oil has increased exponentially. Now, this sector accounts for 30% of the total lubricants consumption in Bangladesh.
Like China and India, increasing product manufacturers focus on setting up production facilities in Bangladesh on account of low initial investment and minimum labour charges, has opened this market.
Additionally, the regional market is comparatively irregulated, which shall be eventually fueling metalworking fluid demand across the region in the coming years.
However, metalworking fluid segment is an insignificant one, include a range of oils and other liquids that are used for lubricating or cooling metallic workpieces during industrial procedures such as machining, grinding, forging, stamping, and milling.
As metalworking fluids are used across a spectrum of manufacturing processes to cool or lubricate workpieces when they are being machined, they play a critical role in machining.
With the rapid growth in manufacturing activities in Bangladesh, the metalworking fluid industry is expected to ride the tide in the near future.
The auto sector would be another driver of metalworking fluid growth in the country.
Few auto manufacturing industries have already set up. More auto component production unit may run in Bangladesh.
The demand is expected to be driven by the future automotive sector for which the metalworking fluids are used during the manufacturing of automotive parts and other equipment.
Some other sectors are also adding to the demand rise.
The existing demand for metalworking fluids has been segmented based on end-use industry into transport equipment, primary ferrous, primary non-ferrous, machinery and metal fabrication industry.
The main industries linked with the assembling process and fabricated metal industries.
Metalworking fluids are segmented into four different product types, namely, removal fluids, forming fluids, protection fluids, and quenching fluids.
Removal fluids are currently dominating the existing market share and the dominance will continue due to the high use of coolants, cutting fluids, and grinding fluids during the various machine processes in manufacturing.
Future growth of the metal forming fluids depends on the growing steel industries in the coming years.