07 May 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Lower prices are being seen in the European Group III base oil market because of competition among producers, a producer said on Tuesday.
The producer said it had been forced to lower its spot prices to €940-950/tonne ($1,237-1,250/tonne) FCA (free carrier) NWE (northwest Europe), down from €965-970/tonne last week, in the face of aggressively low offers from another producer.
This second producer was said to be offering as low as €900-920/tonne FCA NWE, although this was not confirmed.
Whether or not the low offers are an attempt to increase market share is unclear. However, several sources have noted the market is oversupplied, which could be a factor.
Group III demand has been fairly poor for most of 2013 so far, with high-quality finished lubricants not selling well.
The assessed price range for 4cSt (4 cenistoke) material was moved down on the high side by €20/tonne this week, to €940-970/tonne FCA NWE.
($1 = €0.76)
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