Producers and importers of automotive and industrial lubricants say sold volumes are going to slide by another 10% in the first half of next year, after the sales of companies operating on this market have so far slumped by around 30%.

Companies on this market believe the toughest stage of the economic downturn will be registered as late as the first half of next year.

"In the first 9 months of this year, our industry saw a market decline of around 30%. The volume of automotive and industrial lubricant sales depends on the development of all industries and primarily the automotive industry. Obviously, the economy contraction directly translates into a motor and industrial oil market decline," say the representatives of Lubrichem, the association of producers and importers of lubricants, chemicals and vehicle accessories.

Lubrichem accounts for over 80% in the Romanian industrial and automotive lubricants market. Companies on the market consider the worst is yet to come and that next year will bring a 10% drop in sold volumes. Several companies in various fields have voiced their pessimism as regards the end of this year and next year, specifying there is no way things could improve given that the buying power is dwindling, unemployment is rising and the overall economic situation is deteriorating as a result of the lack of clear anti-crisis measures.

"(...) We consider the peak of the Romanian economic crisis will be registered in the first months of 2010. We hope, though, that state institutions will become more aware of the role they have to play in relation to the business environment and take over our proposals, both as regards the modification of legislation and its application," Lubrichem representatives also say.

The market is worth some 200m euros and 155,000 tonnes of motor and industrial lubricants were sold last year. @N