06 September 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European domestic base oil solvent neutral (SN)150 and SN500 spot prices have declined $40/tonne (€28/tonne) because of imbalanced supply and demand, market sources said on Tuesday.
Faced with mounting supplies and sluggish demand, producers are increasingly offering discounts.
“Stocks are building up and we need to move product,” explained a northwest European producer.
The producer indicates that after a poor July and weak August, it is offering SN150 and SN500 at prices below $1,400/tonne FOB (free on board) NWE (northwest ?xml:namespace>
Other producers are unwilling to reduce by this much, but concede they, too, are lowering prices.
Several buyers talk of lower prices, suggesting producers are eager to sell even at discounts, because of brimming storage tanks.
In addition, prices in parts of northwest
In the week ending 6 September, ICIS assessed SN150 and SN500 FOB NWE domestic spot prices down by $40/tonne to $1,400–1,430/tonne and $1,430–1,460/tonne respectively.
($1 = €0.71)
By: Carl Roache
+44 207 911 1417
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