22 January 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--The European Group I base oil export market lacks a clear price direction with increases, decreases and stability all mentioned this week, market sources said on Tuesday.
European export market activity is picking up, but a lack of consensus has emerged on pricing.
There is a discrepancy between individual suppliers because of stock positions and certain traders are willing to pay more than others because of freight rates and quality considerations.
Market sentiment reflects this inconsistency, with bullish and cautious reports heard.
“We do not sell any drop of base oil more than we need to. We are expecting price increases,” said a central European producer.
By contrast a European trader said: “It is a bit of a wide range [of prices] and we have to be careful where and what we buy.”
Ongoing global economic uncertainty is supporting this cautious approach to purchasing, sources said.
European export SN150 prices were assessed stable at $870-905/tonne (€653-679/tonne) FOB (free on board) Europe, by ICIS.
($1 = €0.75)
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