South Africa base oil prices expected to increase despite poor demand

20 March 2013 16:06  [Source: ICIS news]

LONDON (ICIS)--Domestic base oil prices in South Africa are expected to increase in April despite lacklustre demand, sources said on Wednesday.

The majority of South African base oils are distributed via monthly contracts, the prices of which are generally issued by suppliers on a take-it-or-leave-it basis.

Downstream finished lubricant demand so far in 2013 has widely been described as being below expectations, and this has filtered up to the base oil market.

As a result, base oils were oversupplied during the first two months of the year, and this prevented prices from increasing as suppliers sought to shift stock.

Meanwhile, prices in the European export market, from which South Africa imports significant quantities, were steadily increasing.

The oversupply is now generally said to have cleared, and as such independent players expect major suppliers to push through prices increases next month, in line with higher European prices.


By: Ross Yeo
+44 208 652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly