18 April 2012 09:49 [Source: ICIS news]
By Quintella Koh?xml:namespace>
SINGAPORE (ICIS)--Prices of Group I SN150 base oil in the Middle East could record a new 24-week high on the back of strong regional demand, competition for Group I SN150 spot material from Turkey and Africa as well as tight regional supply, market sources said on Wednesday.
Trades reported from producers, distributors, traders and end-users, confirmed the continued rise in prices of the material.
A tender issued by a producer in the first week of April for 4,000 tonnes of Group I SN150 was sold at around $1,143/tonne (€869/tonne) FOB (free on board) ?xml:namespace>
A further 1,000 tonnes of Group I SN150 was reported sold at $1,153/tonne FOB
After factoring in spot freight rates of around $25.00/tonne from
The last time Group I SN150 prices crossed the $1,165/tonne CFR UAE was on 3 November last year. Group I SN150 prices were assessed at $1,150-1,165/tonne CFR UAE last week.
“There is going to be a dire shortage of [Group I SN150] cargoes in the UAE until the first week of May. All the distributors are either out of stock or running on low inventories,” said a buyer.
Traders and end-users typically turn to Group I SN150 cargoes from the Black Sea and Baltic Sea regions when spot supply in the
However, they have been unable to import Group I SN150 cargoes from these regions in the past few months as the FOB Black Sea and FOB Baltic Sea quotes are priced at above FOB
Group I SN150 FOB Baltic Sea quotes were assessed at $1,245-1,275/tonne FOB
Blenders in the Middle East said that they expect demand from the downstream lubricant sector in the UAE,
Market participants said that they are expecting the shortage to ease in the first week of May as almost 3,500tonnes of Group I SN150 will reach the UAE shores.
Meanwhile, as a result of rapidly strengthening Group I SN150 quotes, both on FOB
Several distributors were quoting Group I SN150 offers at $1,250/tonne ex-tank cash basis, up $50-80/tonne from their offers last week.
A buyer said that it was willing to pay up to $1,180/tonne ex-tank cash basis for Group I SN150 cargoes, up $10/tonne from its bid last week.
($1 = €0.76)
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