02 November 2012 17:12 [Source: ICIS news]
HOUSTON (ICIS)--Economics are robust on Group I base oil plants in the Americas, according to industry consultant Amy Claxton of My Energy, speaking at the American Fuel & Petrochemical Manufacturers (AFPM) International Lubricants & Waxes meeting.
While increasing demand for lower viscosity and synthetic Group I and III base oils is driving many market players to view Group I base stocks as a disappearing segment, Claxton says, “overall revenues of Group I plants is looking pretty good”.
“Brightstock prices are good, along with slack waxes and fully refined paraffin wax,” Claxton said, adding that Group II and III plants lack the option to produce these products because of the technology used at these facilities.
Group I base oil plants now produce slightly over one-half of global base oils supply, the speaker said, emphasising the importance of Group I production to the wax market.
Group I brightstock base oil posted prices ranged $4.70-4.90/gal at the end of October, depending upon producer.
The AFPM conference ends on Friday.
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