11 April 2012 04:59 [Source: ICIS news]
By Quintella Koh
The prices are on a free on board (FOB)
Supply of Group I SN500 is tight because of planned maintenance schedules and the absence of arbitrage opportunities from the Black Sea and Baltic Sea regions, said producers, traders, distributors and end-users in the
Iran’s largest base oils producer, Sepahan Oil, aims to shut its 400,000 tonne/year base oils plant in Isfahan province in the middle of May for maintenance that will take one month, a source close to the company said.
The plant produces Group I SN500, engine oil, industrial lubricants, automobile gear oil, greases and antifreeze, paraffin, heavy slack wax and rubber processing oil.
Traders and end-users are unable to import base oil cargoes from the Black Sea and Baltic Sea regions as the FOB Black Sea and FOB Baltic Sea quotes are priced at above FOB
Group I SN500 FOB Black Sea and Baltic Sea quotes were assessed at $1,185-1,220/tonne (€901-927/tonne) and $1,185-1,215/tonne respectively on 3 April, while Group I SN500 FOB
Traders and end-users typically turn to Group I SN500 cargoes from the Black Sea and Baltic Sea regions when spot supply in the
Market participants said they are expecting Group I SN500 prices to increase by $100/tonne, or 9.9%, to $1,115/tonne FOB
“The price increase will be hard to stomach, but this is the reality that buyers have to face. [Group I SN500] material is in short supply and if you need the cargo, you have to pay for it,” said a trader.
Blenders in the
($1 = €0.76)
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