19 November 2013 15:28 [Source: ICIS news]
LONDON (ICIS)--European Group III domestic base oils values are under pressure because of low demand and high availability, but refiners are refusing to drop their prices, sources said on Tuesday.
“Group III is expensive still – compared to everything else it’s just too expensive. I don’t think anyone is buying really, but the producers say they can’t reduce prices,” a lubricant blender said.
The market has been in a stalemate for some weeks now because refiners refuse to budge on price due to poor margins and buyers will not purchase because prices are too high.
“Group III buyers want lower prices, but refiners won't give it,” said a buyer.
ICIS Group III 4cSt is valued at €910-950/tonne ($1,230-1,284/tonne) FCA (free carrier) ARA (Amsterdam-Rotterdam-Antwerp), with 6cSt at €920-960/tonne.
The main use for base oils is in the manufacture of lubricants, of which there are thousands of types. The best known are automotive lubricants.
Group III base oils are a higher-quality lubricant and severely hydrocracked to achieve purer baseoil.
($1 = €0.74)
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