05 November 2013 15:38 [Source: ICIS news]
LONDON (ICIS)--European Group I domestic base oils prices are steady, although some downward pressure is being felt in the market, sources said on Tuesday.
Although lower numbers were talked about, a number of sources said they had seen no change from October to November because refiners were already struggling with such low margins.
In relation to November prices, a producer said: “In the domestic, it’s a rollover versus October. In some cases we reduced slightly. Essentially around $10/tonne.”
Meanwhile, a trader of base oils in the European market had seen no change in truck prices from October to November.
“Concerning the domestic market – euro truck prices are the same as the last month – there is pressure by the buyers.
“They say we should do something because of the exchange rate. [Named producer] advised that margins are so bad they will not do anything,” the trader said.
A buyer of Group I, II and III base oils said about the market moving from October into November: “No change, no change, no change.
“Prices won't be going up. Nobody is able just yet. It’s all a bit static. We deal with [named producer] and they are doing nothing [on price] at the moment. There is more chance of it going down than up.”
Group I domestic bulk prices are assessed at $1,060-1,090/tonne (€784-807/tonne) and $1,080-1,110/tonne for SN [solvent neutral] 150 and SN500 respectively.
Group I domestic truck prices are assessed at €825-855/tonne and €835-865/tonne for SN 150 and SN500 respectively.
Bulk prices are on an FOB (free delivered) NWE (northwest Europe) basis, while trucks prices are on an FCA (free carrier alongside) NWE basis.
($1 = 0.74)
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