06 August 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European producers have rolled over most Group I domestic base oil prices from July into August, sources said on Tuesday.
This confirmation follows indications last week that producers intended to keep prices stable.
While some producer are understood to have offered small discounts to a handful of large customers, the bulk of market pricing remains at July levels.
One southern European producer said it had increased the price of brightstock by €10-20/tonne, but this was not heard elsewhere.
Producers are operating with slim profit margins, and several said they would have liked to increase prices. However, August is generally a weaker month in terms of demand, largely through holidays and plant maintenance, and there is a widely-held belief that the market would not accept price increases at this time.
While demand in northwest Europe has so far been described as stable, one producer said August typically sees a reduction in offtake of around 10-20%, although no such decline has yet been seen.
Suppliers said the decision to roll prices over into August was met with ready acceptance by consumers.
Domestic truck prices are assessed as follows, on a free carrier (FCA) northwest Europe (NWE) basis: SN150 at €825-865/tonne ($1,100-1,153/tonne); SN500 at €835-875/tonne; brightstock at €920-965/tonne.
($1 = €0.75)
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