23 March 2009 15:19 [Source: ICIS news]
HOUSTON (ICIS news)--US base oil buyers received on Monday price decrease letters of up to 21% on Monday, just as the National Petrochemical and Refiners Association (NPRA) international conference began in San Antonio, Texas.
US base oil suppliers often send out a round of price changes just before a big industry event such as NPRA, a buyer said. “I am sure we will hear from other suppliers before the day ends,” the buyer added.
Group II supplier Motiva told buyers it would reduce posted base oil prices by 30-75 cents/gal, depending on the grade. The price decrease would be effective on 1 April. Motiva’s last posted decrease was on 2 February.
Motiva’s largest decrease will be the 600-grade oil, which will drop by 75 cents/gal to $2.56/gal ($768/tonne, €568/tonne).
ExxonMobil will reduce its grades by 40-85 cents/gal, depending on grade, effective on 25 March, said buyers who received the news in a letter.
ExxonMobil’s bright stock oil will drop the largest amount at 85 cents/gal to $3.22/gal.
The decreases come following heavily discounted spot offers at $0.75-1.50/gal off posted prices.
The collapse of key downstream sectors such as automotive and manufacturing has impacted demand just as additional supply arrived in the US base oils market.
Motiva’s 40,000 bbl/day Port Arthur base oil facility in Texas had been in a planned 45-day turnaround for most of the first quarter, but restarted during the first week of March.
($1 = €0.74)
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections