23 April 2013 17:14 [Source: ICIS news]
LONDON (ICIS)--Base oil prices in the Baltic Sea market are resisting significant decreases, despite several players expecting to see lower prices soon, sources said on Tuesday'
Traders active in the region said most sellers had indicated they would be willing to negotiate on prices if they saw a solid request for a suitably sized cargo.
According to a trader, one such seller specified it would consider discounts for SN900 if at least 5,000 tonnes was purchased.
Sources have spoken about the potential for price decreases in the region for several weeks, in light of significantly lower feedstock costs and a general lack of cargo exports.
A producer said it was unable to sell at the previous published levels, and that a price reduction was necessary for business to restart.
However, although some low offers have been made, no business has yet been seen at lower prices. Meanwhile, two trades were claimed this week, but not confirmed, toward the high end of the published price ranges.
Nevertheless, several players maintain that, based on market fundamentals, prices will inevitably decline in the coming weeks.
This week, prices were assessed lower by $10/tonne (€8/tonne) on the low side of the range, for all grades, in reflection of some of the offer levels of sellers.
($1 = €0.77)
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