09 October 2012 08:48 [Source: ICIS news]
DUBAI (ICIS)--The narrow spread between European base oil export prices and those in the Baltic Sea and Black Sea could lead to fewer sales from the latter, a seller said on Tuesday.
Speaking on the sidelines of the ICIS Middle East Base Oils and Lubricants Conference in Dubai, the seller said that European export prices normally attract a premium of $35-40/tonne over Black Sea and Baltic Sea exports. This is because of freight rate variances and quality differences.
However, at present the regions are trading at similar levels, which may lead to some buyers in key markets such as Turkey opting for European product instead of base oils from Russia and the New Independent States (NIS), said the seller.
“The market is OK. But it may seem weak because of the very narrow spread,” the seller added.
European solvent neutral (SN) 150 export prices were assessed at $1,025-1,050/tonne (€789-809/tonne) FOB (free on board) Europe by ICIS last week.
Baltic Sea SN150 prices were assessed at $1,015-1,045/tonne FOB and Black Sea SN150 at $1,015-1,040/tonne FOB.
($1 = €0.77)
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