Domestic Group I base oil prices hold steady on firm feedstocks

14 August 2012 23:59  [Source: ICIS news]

LONDON (ICIS)--European domestic Group I base oil prices have held steady this week because of firm upstream costs, market sources said on Tuesday.

The ongoing firmness of crude oil and other upstream products have supported the base oils market and prevented any further downward price movement on the Group I domestic market this week.

Although demand remains lacklustre, sellers are, in the main, unwilling to cut prices any further in light of the pressures upstream.

“If you speak to European refiners, because of crude oil, vacuum gasoil and gasoil prices, nobody is talking about discounts,” said one northwest European trader/distributor.

“They are out the window.”

Weak demand and earlier reductions in feedstock costs had seen domestic base oil prices slide.

This week, prices held steady after a period of steady declines starting in June, which saw over $200/tonne (€162/tonne) wiped off certain domestic prices.

Solvent neutral (SN)150 and SN500 prices were both assessed stable this week by ICIS, at $1,175-1,210/tonne FOB (free on board) northwest Europe and $1,195-1,225/tonne FOB respectively.

($1 = €0.81)

By: Carl Roache
+44 20 8652 3214

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