INSIGHT Base Oil Report
Samantha Wright, Senior Editor Manager
Europe European domestic base oils Group I prices were stable to firm, while Group II and Group III values jumped up in the first half of July. Ongoing shortages continued to put pressure on prices despite a seasonal slowdown taking place in some applications. The dollar : euro exchange rate placed further pressure on Group I FCA spot prices. Group I supply improved slightly as some plants returned from maintenance, but Group II and Group III supply remained limited. Group III faced the most severe shortages of the grades, with 4cSt particularly constrained. European export prices were steady in mid-July. The export market continued to be muted as supply constraints were off-set by a lack of demand.
US
US values were stable in mid-July, though posted prices from several suppliers increased at the end of the second quarter. Demand slowed while feedstock costs reduced, and this was coupled with tightness in the additives market which eased pressure on base oils availability. While Group I and Group II saw better availability, Group III remained tight, with 4cSt facing the most supply constraints. High transport costs from Asia and the Middle East supported prices for Group III at existing levels.
Asia Group I prices in Asia were largely flat in the first half of July as buyers were on the sidelines monitoring the market after crude and gasoil prices tumbled. Spot availability from Japan and southeast Asia was scarce. Group II northeast Asia prices for light grade 150N were stable to soft, while heavy grade 500N FOB
prices were stable to firm. Supply of 500/600N was relatively tighter than that of 150N, with the influx of China-origin 150N further exacerbating the situation. Group III prices held steady with buyers purchasing on a hand to mouth basis, which led to only sporadic spot deals.
Middle East
Middle East base oils prices were stable to firm in mid-July, driven by sharp increases in Group I material amid higher prices of raw materials and shortages of light grade product. Overall trade activity was dampened ahead of the Eid ul-Adha holidays which took place in early July. Group I prices increased for Sn150, with Iranian export material seeing the sharpest rise. Group II and Group III values were steady due to limited price discussions.
LINK
www.icis.com
LUBE MAGAZINE NO.170 AUGUST 2022
47
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