07 August 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European Group I domestic base oil prices have fallen $10/tonne (€8/tonne) this week, amid ongoing weak demand, market sources said on Tuesday.
Several producers have cut prices in an attempt to encourage business, amid sluggish market conditions.
“I think that demand is still very poor and everybody is quite long on all grades,” said one supplier.
Declines of up to €80/tonne on certain grades of base oil have occurred heading into August.
However, declines of this size are an attempt by certain suppliers to catch up following reductions introduced by other suppliers during July.
Poor demand has seen domestic base oil prices slide steadily for several weeks.
Despite recent rises to raw material costs, certain base oil buyers feel further declines could follow because of ongoing subdued finished lubricant offtake.
Solvent neutral (SN)150 and SN500 prices were both assessed down by $10/tonne this week by ICIS, to $1,175-1,210/tonne FOB (free on board) northwest Europe and $1,195-1,225/tonne FOB respectively.
($1 = €0.81)
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