US naphthenic base oils buyers see third drop

14 November 2008 20:56  [Source: ICIS news]

HOUSTON (ICIS news)--US naphthenic base oil prices were drifting down as downstream automotive weakness continued to weigh on the market, players said on the sidelines of the National Petrochemical and Refiners Association (NPRA) Lubricants and Waxes meeting on Friday.

Buyers said they received a notice from at least one supplier that their contract prices were being lowered by 20 cents/gal ($60/tonne, €47/tonne) across all viscosity grades. The decrease marks the third for buyers since October.

Demand has fallen in the US as more than half of the market is tied to the automotive market, a seller said.

“Naphthenic prices see the effects of a recession much quicker than paraffinic base oil prices do,” the seller said. “Naphthenic prices bounce back again quicker also,” the seller added.

Spot prices for naphthenic grade 750, which is typically used in grease applications, was last assessed at $3.15/gal, according to data from global chemical market intelligence service ICIS pricing. 

Ergon, San Joaquin Refining, Nynas and Cross oil are among the major US naphthenic base oil sellers.

($1 = €0.79)

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By: Heather McGuire Doyle
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