INSIGHT
Samantha Wright, Senior Editor Manager
Base Oil Report
Europe European domestic Group I and Group II base oils spot were steady in mid-March. A rise in enquiries were evident, even though overall trading remained subdued. Group I and Group II continued to see healthy availability. Stable Group II supply dynamics were being supported by imports from the US. Group III prices were steady amid limited change to market fundamentals. Export prices for Group I material were stable in mid-March following a sharp increase earlier in the month. Supply was tightening as sellers prioritised the domestic market, but demand remained weak.
US
Spot prices in the US were stable to soft in mid-March. Domestic customers pushed back against recent price increases alongside an oversupplied US market. While demand was healthy relative to a year prior, availability was ample and the US continued to export to other regions at low price levels. However, export prices spanned a wide range depending on seller. Margin pressures eased slightly with a small retreat in crude prices.
Asia
In mid-March, Asian Group I values were stable to strong amid sustained tight supply of southeast Asia-origin cargoes. Buying sentiment improved as buyers had few alternative choices of Group I material from other regions. Group II prices diverged with the lighter grade stable as largely ample supply was met with stagnant demand, while heavy grade prices extended gains due to relatively tighter supply.While Group I supply is expected to remain tight in the near term, Group II supply will likely increase following the ramping up of production at a South Korea refiner’s unit in early March.
Middle East
Middle East base oils were steady in mid-March with limited concrete deals concluded. Subdued market conditions were expected to persist through March and into April as the Muslim fasting month of Ramadan is typically a slow demand season for base oils. In Group I, there was an absence of any offers from Iranian suppliers.
www.icis.com
LUBE MAGAZINE NO.180 APRIL 2024
57
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
