06 November 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European base oil solvent neutral (SN) 150 export prices have declined $40/tonne (€31/tonne) this week because of sluggish demand, sources said on Tuesday.
Export markets are stagnant because of a lack of buying interest.
“I do not see many requests for product, so nothing is happening. Really, the market is dead,” said a west European producer.
In particular, European exporters note lots of pressure on SN150, largely because of a lack of Turkish demand following recent tax regulation changes.
North Africa is presenting few sales opportunities to European sellers and traders. Morocco is understood to have surplus product, while Egyptian General Petroleum Corporation is not expected to tender again soon.
Algerian buyers were looking for an end-November cargo, but are understood to be unwilling to commit to prices.
One European producer was offering a sizeable discount on its SN150, but was still unable to sell.
SN150 prices were assessed down $40/tonne this week by ICIS, to $980-1,000/tonne FOB (free on board) Europe.
($1 = €0.78)
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