15 November 2013 19:57 [Source: ICIS news]
HOUSTON (ICIS)--Mexican base oil players see the current "buyers' market" in base oils as likely to continue well into 2014, one buyer said on the sidelines of the American Fuel & Petrochemical Manufacturers (AFPM) Lubricants & Waxes conference this week.
“For me the prices are good right now,” one base oil buyer from ?xml:namespace>
Buyer sources said that offers for Group I and Group II base oils were attractive for November and December purchases.
Sources said that offers from the
“We do not see this is going to change any time soon,” a buyer said.
“We think this is going to be a buyers market for a long time,” the source added.
Underlying the buyers' market mentality presently dominating the US base oils market is the seasonal push by suppliers to move inventory levels down ahead of year-end tax implications.
However, the seasonal inventory drain is currently abetted by low demand in Europe that is encouraging suppliers and traders in that region to approach
Also adding punch to lower price sentiment are upcoming expected capacity additions to global supply, led by the anticipated first-quarter 2014 start-up of Chevron’s 25,000 bbl/day Pascagoula Base Oil Plant in
The FOB (free on board)
The AFPM Lubricants & Waxes conference ended on Friday.
Follow Judith on Twitter
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections