05 March 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European Group I domestic base oil prices have increased between $15-25/tonne (€12-19/tonne) this week, depending on grade, as producers seek to improve flagging margins, sources said on Tuesday.
European domestic Group I prices, for lots of 500 tonnes and above, have moved upwards for the first time this year with producers keen to secure higher values because of tight margins.
For several months, producers across Europe have been at reduced production rates because of poor margins.
With the domestic market now more in balance, the attempted increases have gained some traction in March.
“They [buyers] will have to accept this because I am not willing to go below that,” said a northwest European producer, which had pushed for a $35/tonne rise in March across its Group I range.
However, the actual move upwards has been more modest than many anticipated, with competition among sellers, flat downstream demand and falling upstream values among the reasons for this, sources said.
European domestic SN150 prices were assessed up $15-25/tonne at $1,050-1,080/tonne FOB (free on board) NWE (northwest Europe) this week, by ICIS.
European domestic brightstock prices were assessed up $20/tonne at the high end to $1,160-1,200/tonne FOB.
($1 = €0.77)
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