02 July 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Domestic European base oil truck prices have eased this week, enabled by a stronger euro, sources said on Tuesday.
The market has been under pressure for some time as a result of persistently weak demand. While many participants expected to see barge prices, which are in dollars, decrease in July, they have held stable.
However, several sources said it has become possible to negotiate discounts on truck prices, which are in euros.
The value of the euro in late-June was stronger than in late-May, and sources said this enabled sellers to discount euro prices while maintaining the dollar-value.
With crude oil prices having firmed in the past week, producers are reluctant to decrease prices in dollar terms and erode profit margins.
Domestic truck prices were assessed at €825-865/tonne ($1,071-1,123/tonne) for SN150, €835-875/tonne for SN500 and €920-965/tonne for brightstock, all on a FCA (free carrier) northwest Europe basis. These prices represent decreases of €5/tonne.
($1 = €0.77)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections