11 December 2012 17:05 [Source: ICIS news]
LONDON (ICIS)--Group I base oil prices in the Baltic Sea market have continued to edge downwards this week, losing $10/tonne (€8/tonne) on all grades, despite a slight increase in buyer enquiries, market players said on Tuesday.
Although buyer interest has increased, few actual deals were done this week and demand remains poor. However, one trader believes the uptick in enquiries is a sign that buyers are anticipating the market bottoming out, and will soon commit to deals as a result.
While the trader thinks further decreases are possible, it believes the downward momentum has slowed and that there is limited room for further decreases.
Other players were less convinced that the bottom is near. Two other traders said they expect to see prices falling for the rest of the year, and one does not expect to see any increases before February 2013.
Baltic Sea base oil prices have fallen by up to $180/tonne during the last two months amid low global demand for exports.
($1 = €0.77)
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