INSIGHT
Samantha Wright, Senior Editor Manager
Base Oil Report
Europe European Group I prices were mixed in mid-March. While domestic prices for brightstock were stable, export prices for this grade increased on limited supply. This meant the domestic and export brightstock spread widened further after export values surpassed domestic prices earlier in March. The brightstock market remained very tight on the export market and there were no signs of this improving through the rest of the first quarter. Group II supply remained ample with demand expected to pick up. Group III spot values edged down in the middle of March as the oversupply in the 4cSt market continued, though there were signs of supply returning to a more balanced situation through March.
US
Spot prices in the US market were mainly unchanged in mid-March, though there was a slight uptick in Group II N100/N120. Demand remained weaker than available supply in the US market in general despite pockets of tightness that were expected to be short-lived. Market players were bracing for US tariffs to be imposed on Mexico and Canada, which were pushed to 2 April. Tariff anticipation spurred demand to get US base oil into Mexico and Canadian base oil into the US ahead of implementation, but the trade policies otherwise slowed activities due to uncertainty. Market players continued to stock as needed.
Asia
Asian spot prices were mixed this week dependant on Group and grade in mid-March. Demand in Asia was largely subdued in China, while market players in India stayed on the sidelines, preferring to keep inventory levels lean toward the close of the financial year end. Group I markets were largely stable on limited buying interest and supply availability in the market. Group II supply stayed tight for heavy grade 500N, while market sentiments and viable trading levels for 70N slipped against the backdrop of weak gasoil values
and soft demand in India. Chinese demand for Group III material remained lacklustre while availability of other options contributed to weaker price acceptance. In southeast Asia, market participants observed slightly tighter availability of Group III material, although steady availability of term volumes remained sufficient in supplementing demand requirements.
Middle East Spot prices from the Middle East diverged in mid-March, depending on the Group and grade of material. Steady demand and robust attempts to restock ahead of the Iranian New Year holiday and the Eid ul-Fitr holiday in mid-March and end-March respectively, supported deals for Iranian cargoes. SN150 import prices saw softness emerge amid typically limited demand for the grade and sufficient and competitive availability of Group II 150N, the latter considered a better-quality substitute. Demand on the Group I imports’ as well as ex-tank front is expected to remain supported by limited arrivals through March and the continued shortage on the high VI front. Activity on the Group II imports’ front was limited this week, as importers held off on fresh purchases in anticipation of February shipments arriving later this month.
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LUBE MAGAZINE NO.186 APRIL 2025
69
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