26 November 2013 15:48 [Source: ICIS news]
LONDON (ICIS)--The European Group III base oils truck market is quiet and not a great deal of business is expected to take place between now and the year-end, sources said on Tuesday.
“It’s really dull and boring - nothing is happening,” said a Group III base oils trader.
A second trader echoed these comments, describing the Group III truck market as “boring”.
“There is nothing new to say. Most people are waiting to see what will happen next year,” the trader said.
Looking ahead to December pricing, a buyer said that a producer has announced a rollover. “[Named producer] has announced it will roll over GIII prices for December. [Named producer] prices usually forms the high end of the price range.
“The market remains two tiered, with material with OEM [original equipment manufacturers] approvals at the high end. GIII is very expensive now compared to other base oils and its not competitive,” the buyer said.
The Group III base oils truck market had recently come under some pressure because of high stocks and low demand.
Buyers deem Group III prices too high when compared with other base oils. However, refiners are unwilling to reduce prices because of low margins.
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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