30 October 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European Group I domestic base oil prices have fallen $20/tonne (€16/tonne) this week because of poor demand, market sources said on Tuesday.
Both buyers and sellers talk of depressed market conditions, evidenced by sluggish offtake in the downstream finished lubricant sector.
“It is a very tough market,” said a northwest European finished lubricant manufacturer, adding that its sales were significantly down on last year.
One base oil trader said: “It is slowing down a bit too early. People are already reducing inventories.”
This week, a major European base oil supplier cut its Group I domestic prices by $50-60/tonne, depending on grade.
However, most sources believed much of this movement was an attempt to catch up with present market prices.
Group I domestic solvent neutral (SN) 150 prices were assessed down $20/tonne at $1,130-1,165/tonne FOB (free on board) NWE (northwest Europe) by ICIS.
SN500 prices fell by the same amount to $1,150-1,185/tonne FOB NWE.
($1 = €0.78)
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