18 June 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Solvent neutral base oils (SN150 and SN500) in the European export market are being offered by several producers at discounted prices, market players said on Tuesday.
Supplies of SN150 and SN500 are long and demand is not high. One producer explained this is largely a result of the poor performance of the European car industry, as well as European heavy industries.
SN150 is typically used to produce automotive engine lubricants, while the more viscous SN500 is often used for industrial lubricants.
EU passenger car registrations fell in May, ending a short-lived rise in April.
According to data from the European Automobile Manufacturers’ Association (ACEA), demand for new passenger cars in May declined by 5.9% year on year, reaching 1,042,742 units.
With domestic demand low, excess supplies are sold as exports, and this has pushed export prices down.
By contrast, supplies of brightstock in the export market are much tighter, coupled with stronger demand.
This week, export prices for SN150 were assessed at $960-980/tonne ($720-735/tonne) FOB (free on board), down $10/tonne, and SN500 prices were assessed at $975-995/tonne FOB, also down $10/tonne.
Brightstock prices were assessed stable at $1,090-1,125/tonne FOB.
($1 = €0.75)
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