to be unveiled in October


Expansion of UTCs a step in the right direction


The Institution of Engineering and Technology has welcomed the announcement that 15 new University Technical Colleges (UTCs) will be created to train 20,000 young people as the engineers and scientists of the future.


The UK needs more engineers and technicians to meet the skills needs of industry. This need will only be met by providing a range of entry routes; both vocational and academic.


Stephanie Fernandes from the Institution of Engineering and Technology (IET) said: “We hope that the expansion of UTCs will fill the hole created by the Government’s decision to downgrade the


Base Oil Report


Group I base oils prices are falling across the board early in the third quarter. The primary reason is reduced feedstock costs, prompted by the sustained losses in the crude oil market. During the second quarter of the year, crude prices saw about 25% wiped off their market value and this has led feedstock vacuum gasoil prices to also tumble. Accordingly, as Q2 progressed, base oil buyers began pushing for price reductions and gradually these started to be realised.


The first to start trending down was Black Sea and Baltic Sea export prices. Tighter regulations in the key Turkish market and high domestic stock levels impacted import demand. This contributed to Black Sea price indications declining.


value of the successful Engineering Diploma. UTCs will be at the heart of achieving improvements to the economy and supporting a pipeline of future apprentices, technicians and engineers. However, this expansion must be speeded up to ensure the pipeline doesn’t dry up.”


The new UTCs will have involvement from around 200 high-profile employers – including household names like Jaguar Land Rover, British Airways and Virgin Atlantic. They will also have significant input from world-class universities, such as Cambridge and Warwick.


The IET has taken a key role in leading the engineering profession’s support for


In the Baltic Sea, mounting stocks and a lack of firm buying interest pushed prices down. Buyers in the key Nigerian market remain reluctant to commit in a softer market, which is also a contributing factor in the price declines seen.


After several weeks of resistance by suppliers, west European export prices also started to decline at the end of Q2. Mounting stock levels forced them to cut offers in an attempt to stimulate some buying interest. Moreover, as Black Sea and Baltic Sea prices had already fallen steadily, the prices previously being requested by suppliers were considered unsustainable.


The reduction of feedstock costs and ongoing poor end-market lubricant demand also led to a decline on the European domestic market prices.


UTCs and the initiative was launched at the IET in February 2010.


UTCs will create opportunities for more than 20,000 young people to train as the engineers and scientists of the future – playing a crucial role in the UK’s long- term economic growth. They will offer hands-on technical learning alongside academic GCSEs and A levels.


The combination of a strong technical and academic education ensures that students are ready for work or further study at college or university.


LINK www.theiet.org


Group III base oil prices eased as Q2 drew to a close. Although demand for these grades is reasonable, increasing availability is applying downward pressure on prices as sellers compete for business.


Looking ahead, while it is not feedstock costs alone that drive base oils prices, the significant declines upstream are leading many to predict further base oil prices falls over the medium term.


Carl Roache


Senior Editor Manager (Europe) ICIS


38


LUBE MAGAZINE No.110 AUGUST 2012


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