INSIGHT
Eashani Chavda, Markets Editor
Base Oil Report
Europe European domestic Group I SN150 FOB spot prices firmed for the first time since Q2 2022 on tightening supply in early March. SN500 and brightstock were assessed flat. Market sentiment continues to shift, with players suggesting price reductions have eased due to poor margins and reduced availability.
Group II base oils spot prices were seen at double-digit reductions, continuing the stable-to-soft trend seen since Q4 2022. Meanwhile, Group III spot prices were steady to firm, with tightness persisting particularly in the 4cSt market and demand remaining high.
European export values were unchanged amid limited movements in market fundamentals. There was still low demand from key destinations and the market remained generally balanced.
Asia Group I northeast Asia prices for all grades were stable for the second consecutive week in late-Q1. Spot offers from southeast Asia were scarce, with relatively tight supply being offset by stagnant demand.
Group II average FOB NE Asia prices of light grade 150N and heavy grade 500/600N inched up further on higher deals and discussions for South Korea-origin cargoes in early March.
Chinese demand remained relatively stronger than other regions such as southeast Asia and India, although buying appetite for higher priced cargoes had diminished after recent price increases.
In India, average import prices for most Group I and II grades were maintained in subdued trade. Buyers were non-committal in their purchases amid ample supply of competitively priced domestic cargoes. Group III prices were flat on a lack of deals and offers of South Korea-origin cargoes heard.
US
US posted prices were unchanged in early-March and ICIS market prices held steady as below-average
www.icis.com
demand underpins the market ahead of the typical peak
consumption season this spring. Supplies are largely sufficient to meet demand alongside maintenance in Group I and Group II markets this spring. Approximately 30% of Group II capacity and 19% of Group I capacity will undergo maintenance during that time, with all work expected complete by May.
pplies are largely
Middle East Group I SN500 base oil prices have seen some softness tracking fresh offers and some discussions for Iranian cargoes in early March. Import interest was limited following the completion of a bulk of spot trades in February for cargoes that are expected to arrive in March. SN150 discussions were absent but ex-tank availability remained sufficient to meet demand.
Group II import interest was also feeble on the back of sufficient regional availability and the impending arrival of Asian cargoes booked in the previous weeks. Offers and selling indications for northeast Asian product have begun to nudge higher following improved demand and firmer price acceptance in markets such as China and India.
Group III discussions remain restricted to need-based purchases as several regional blenders continue to grapple with high costs and sluggish downstream finished lubes movement in export markets.
LUBE MAGAZINE NO.174 APRIL 2023
65
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
