17 October 2012 16:07 [Source: ICIS news]
SCOTTSDALE, Arizona (ICIS)--Ample supply is defining the paraffinic base oils market, with discussions primarily centred upon supply length in Group II, buyers and sellers said on the sidelines of the annual meeting of the Independent Lubricant Manufacturers Association (ILMA) on Wednesday.
“We are hearing more offers of Group II base oils in our region,” one buyer said.
Group II base oil supply length became evident during September. By mid-October, it became clearer that Chevron’s outage at its ?xml:namespace>
There were some expectations that the outage, which began in August, would cause additional spot purchasing or attract significant import volumes, but market participants said that did not take place.
There have been no supply glitches, and requirements are being readily met with available base stock, sources said.
Group II base oils form one tier of the overall market, with Group I material produced by older technology and Group III recognised as the premium tier.
Group II posted prices for light viscosity grades are at $4.18/gal US Gulf (USG) from one major supplier and $4.09/gal from another.
Export Group II spot ranges for slightly higher viscosity material was most recently assessed at $3.65-3.85/gal.
The 2012 ILMA meeting ends on Wednesday.
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