11 December 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European Group I base oil prices have declined this week because of ongoing poor demand, market sources said on Tuesday.
Several producers confirmed they were, or would likely be soon, cutting base oil production rates amid slow sales and dwindling margins.
One southwest European producer said it was currently at 75-80%.
A northwest European buyer said: “We are not in the [spot] market at the moment because our demand is relatively low.”
The buyer talked of its finished lubricant customers downstream destocking, reducing any requirement for spot base oils.
Several producers who regularly export base oils noted a lack of firm bids from buyers and traders.
“It is all very, very quiet,” said a European export trader.
Domestic solvent neutral (SN) 150 prices were assessed down $10/tonne (€7.70/tonne) at the high end this week to $1,035-1,055/tonne FOB (free on board) NWE (northwest Europe) by ICIS.
Export SN150 prices were assessed down $10/tonne at $890-920/tonne FOB Europe.
($1 = €0.77)
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