23 October 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European Group I domestic and export base oil markets are stagnant amid a lack of firm buying interest for spot tonnes, market sources said on Tuesday.
In the domestic market, supply is described as plentiful, despite some turnarounds in the region, but buyers report no requirement for spot volumes.
Meanwhile, European exporters and traders bemoan the lack of potential outlets available to them.
“The phones are not ringing,” said a European trader, adding: “Demand is still pretty depressed.”
A change in tax legislation has seen Turkish demand decline. In addition, there are religious holidays approaching there and in parts of the Middle East.
The severity of the global recession is deemed another contributor to the lack of buying interest.
“Because the market is not really moving at the moment, we are not buying anything,” said another European trader.
Group I domestic and export solvent neutral (SN) 150 prices were both assessed unchanged this week by ICIS, at $1,150-1,185/tonne (€886-912/tonne) FOB (free on board) NWE (northwest Europe) and $1,025-1,045/tonne FOB Europe respectively.
($1 = €0.77)
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