18 March 2013 02:36 [Source: ICIS news]
SINGAPORE (ICIS)--Demand for Iranian Group I base oils export cargoes is firmer amid a lack of spot availability, with prices expected to rise in the coming weeks, market sources said on Monday.
Buyers in India and within the United Arab Emirates (UAE) regions were heard sourcing for cargoes as supply is tight and many traders have no stocks on hand, the sources added.
Spot availability is tight as several Iranian Group I base oils refineries were being prepared to shut down ahead of the Iranian New Year holiday on 21 March and as a result, there were no fresh cargoes for the past few weeks.
Moreover, the New Year celebrations are expected to continue until 5 April and cargoes availability is expected to only resume by mid-April.
“Everyone is looking for cargoes but there is none available, even traders with some stocks on hand are not offering as they expect prices to rise in the coming weeks, ” an Indian buyer said.
Prices of SN150 and SN500 rose by $10/tonne (€7.70/tonne) at the high end of the range to $930-960/tonne ex-tank Sharjah and $940-970/tonne ex-tank Sharjah respectively.
($1 = €0.77)
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