“Some metalworking fluids need specific certifications to sell to clients making specific products, and it sets a high barrier for Chinese fluids,” said Xu Dongjie, founder at Isachem, a Shanghai-based supplier of additives for metalworking fluids. As China now is making its own airplanes, a good example is the fluids used in processing of 7000 series aluminum alloy for the aviation industry.

“Like many other parts in the supply chain, these fluids also have to be Boeing certified,” Xu said. “But so far as I know, China only has one local fluid that received the certification.” The fluid is marketed by Talent, a Tianjin-based fluid supplier whose clients include Boeing and Airbus.

“This is a very lucrative business, but you have to first overcome the technology barrier,” Xu added.

Another example is fluids for steel cords. Xu said those used in radial tires have special requirements to make sure the adhesion between the cord and rubber will not be compromised.

“But no Chinese metalworking fluid producer is approved by any major tire makers so far,” Xu said.

He also talked about metalworking fluid trends, such as the ongoing shift from oil-based to water-based formulations. In the past, manufacturers of metal goods used mostly oil-based fluids to process magnetic alloys, but today companies more often use water-based fluids to comply with stricter environmental laws.

“However, magnetic alloys are usually prone to corrosion, so water-based the solutions are not the most ideal,” Xu said. “How to develop a sustainable solution that can also protect the alloys from rusting is worth doing some research about.”

He noted that demand for titanium alloys continues to grow, especially in the consumer electronics sector thanks to the global popularity of Apple products. But for metalworking fluid suppliers the trick is to provide the right product.

“It’s not one metalworking fluid for all titanium alloys,” he said. “For example, the alloys used in Apple Watch only require a synthetic fluid because a watch is a lightweight product. But the same fluid is not suitable for heavyweight products.” Microemulsions are better for such applications, he said.

Speaking of the electronics industry, Xu acknowledged the intense competition among metalworking fluid suppliers, but still he suggested suppliers should stick around rather than giving it up because the industry is known for big fluid orders.

“You can still make profits if you know how to cut costs,” he said. For example, developing a targeted solution for a specific material. “In this way, you cut all the unnecessary features and that’s how you save  money,” he said.