US naphthenic base oil hikes struggle to get implemented

17 October 2012 17:07  [Source: ICIS news]

SCOTTSDALE, Arizona (ICIS)--US naphthenic base oil increases are struggling to gain market implementation, buyers and sellers said on the sidelines of the 2012 Independent Lubricant Manufacturers Association (ILMA) meeting on Wednesday.

“At this point, we are still working to get the prices up,” a seller said.

Major producer, Ergon, led the price initiatives with a 16 cent/gal increase announcement, effective on 5 October.

Calumet followed at 15 cents/gal, effective on 11 October on all grades, with Cross Oil announcing at 16 cents/gal, effective on 12 October.

But San Joaquin Refinery (SJR) and Nynas have yet to follow the increase initiatives, although these remain under consideration.

SJR continues to deal with conditions special to the US west-coast market, where rapidly rising gasoline prices and other refinery issues are causing concerns.

Both SJR and Nynas are also coping with challenges in the slow export market, dominated by flagging demand in importing countries hit by weak global economics.

Spot prices for naphthenic pale 60 viscosity grade base oils were last assessed at $3.57-3.80/gal, while heavy viscosity pale 2400 material was assessed at $3.50-4.00/gal.

The 2012 ILMA meeting ends Wednesday.

By: Judith Taylor
+1 713 525 2653

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