More US Group II base oils enter Mexican market

17 October 2012 16:50  [Source: ICIS news]

SCOTTSDALE, Arizona (ICIS)--More US Group II base oils are being targeted to the market in Mexico, according to buyers and sellers attending the Independent Lubricant Manufacturers Association (ILMA) meeting, which ends on Wednesday.

“We are selling more Group II into the Mexican market this year and expect this to continue,” one seller said.

While demand in the Mexican finished lubricant sector continues to be soft, Group II base oil stocks are ample in the US, with some attractive prices developing as a result.

Several sellers said they expected the flow of Group II base oils into Mexico to continue and increase over the next several years, but others did not.

“This is a short-term situation based on price,” another seller said.

Group II posted prices for light viscosity grades are at $4.18/gal US Gulf 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.

By: Judith Taylor
+1 713 525 2653

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