23 July 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European base oil prices for heavier grades have been assessed higher this week in the European and Baltic export markets amid tight supply, sources said on Tuesday.
Export prices for SN900 in the Baltic market and brightstock in the European market were both assessed higher by $10/tonne (€8/tonne).
In the European market, the move reflects a range of business seen this week. The consensus view among market sources is that brightstock supplies are much lower than those of other, lighter grades.
Brightstock has also seen better demand in recent weeks than other grades, partly as a result of high demand in Egypt.
The medium-heavy grade SN500 was also assessed higher in the European export market, but by only $5/tonne.
Similarly, in the Baltic market SN900 availability is described as tight, while lighter material can be easily sourced. Although no deals were seen this week, a trader who is trying to build two cargoes for delivery to West Africa said prices were being discussed at a premium to previously published levels.
In addition to low stocks, sources said high feedstock vacuum gasoil prices are also putting upward pressure on prices. This pressure is applied equally to all grades, however.
European export prices for brightstock were assessed at $1,105-1,140/tonne FOB (free on board). SN900 prices in the Baltic market were assessed at $980-1,010/tonne FOB.
($1 = €0.76)
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