12 February 2013 19:22 [Source: ICIS news]
HOUSTON (ICIS)--US naphthenic base oil prices are firming on feedstock costs and improving export options, one supplier said on Tuesday.
San Joaquin Refinery (SJR) this week confirmed it would increase prices by 10-30 cents/gal (€0.08-0.23/gal) on all its export material and at some domestic locations, depending upon location and grade viscosity.
The SJR price increase is in effect as of 11 February.
The SJR refinery is located on the US West coast at Bakersfield, California, with production capacity of 8,100 bbl/day of naphthenic base oils.
At least one other primary exporter of naphthenic oils said it is unlikely to do an overall increase, but is observing firmer price indications causing it to consider looking at price levels on individual grades.
Another naphthenic base oil producer said price expectations were definitely moving higher, especially in some refreshed export options for Africa and Turkey.
“We passed on some export options because the price was too low,” the supplier said.
Naphthenic base oils, also called pale oils, fall into a wide variety of viscosity grades, largely defined by end-uses for the various grades.
One main end-use for Pale 60 grade base stocks is transformer oil, with brisk exporting between the US and South America.
Prices for Pale 60 naphthenic oils are most recently assessed at $3.27-3.59/gal FOB (free on board) plant, with the low end of the spread indicative of export business.
($1 = €0.75)
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