11 October 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European export base oil solvent neutral (SN)150 and SN500 spot prices have declined $30–40/tonne (€22–29/tonne) this week because of ongoing weak demand and mounting stocks, market sources said on Tuesday.
Higher feedstock prices have been unable to stimulate the European group I base oils market, as buyers remain content to purchase on a hand-to-mouth basis.
Traders and sellers have limited options, as European demand is low, the arbitrage window east is reportedly closed, and import demand in the ?xml:namespace>
One west European exporter is offering a $30–40/tonne discount, but is prepared to negotiate if it receives a counterbid.
“The demand is very weak. We cannot buy it all. I do not know what has happened to the market,” said one northwest European trader.
“The market cannot absorb all the availability at the moment.”
In the week ending 11 October, ICIS assessed SN150 and SN500 FOB (free on board)
($1 = €0.73)
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