European base oil producers seek steep April price increases – buyers

30 March 2010 12:48  [Source: ICIS news]

LONDON (ICIS news)--At least two Group I base oils producers in Europe have informed domestic customers their products will cost more in April, buyers said Tuesday.

One major supplier will apply an increase of $20/tonne for SN150 material from 13 April. The prices of heavier grades are to rise even more sharply: up $50/tonne for SN600 and up $60/tonne for bright stock.

Buyers said another major supplier would add €30-40/tonne to domestic prices in April.

Before the increases, domestic prices for SN150 had been stable for many weeks at levels of around $810-835/tonne FOB (free on board) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

Sellers have been trying since February to pass the effect of a stronger dollar on to customers buying in euros and other local currencies.

Buyers said a major Asian supplier of Group III base oils had also notified European customers of a €40/tonne increase from 1 April.

Base oils supply and demand became better balanced in March as producers stepped up export activity. Higher prices in Asia and Africa drew several large cargoes from the European market in March. US prices are also higher.

Buyers complained the European market for finished lubricants is still weak and they fear they will be unable to raise prices for end-users. They noted prices were also increasing for many of the additives they blend with base oils to produce finished products.

“We’re really being battered on the purchasing side,” one lubricant blender said.

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By: James Mills
+44 208 652 3214

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