Group I base oils ample in India, buyers resistant to price hikes

18 February 2010 14:10  [Source: ICIS news]

LONDON (ICIS news)--Group I base oils inventories in India remain ample with buyers resistant to pricing increases in the short term, Indian buyers and traders said on Thursday at the sidelines of the 14th ICIS World Base Oils Conference.

Inventories of most Group I grades are adequate and competitive offers are still available from Russia, eastern Europe and Iran, said large buyers.

Offers for SN-150 grades are still available around $750/tonne CFR India and for the heavier grades like SN-500, offers are still around $790/tonne CFR from eastern European sources, said a downstream blender.

"It’s hard to see any change in prices in the short term in these circumstances," said a large buyer.

Regarding Group II base oils, February prices had seen a modest $10-15/tonne increase. Supply of lighter grades like 60/70N were expected to be balanced-to-tight due to the upcoming turnaround at Korean major S-Oil, said a key buyer.

"This was, however, a temporary situation and we largely expect stability in prices in the near term," said the buyer.

India is large importer of base oils and imported approximately 1m tonnes of base oils during 2009.

To discuss issues facing the chemical industry go to ICIS connect

By: Anu Agarwal
+65 6780 4359

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.

Printer Friendly