SINGAPORE (ICIS)--Some Asia-based refiners are holding back on offering base oils cargoes amid firming crude prices and lacklustre demand to observe market trends further, said market sources on Thursday.
A northeast Asia-based Group II base oils producer said it was holding back on offering spot material because “crude oil prices are still going up and demand for spot cargoes is very weak.”
The same producer added, “With raw material prices going up, we [the company] wants to wait before offering spot cargoes.”
Most market participants echoed similar sentiments, saying that it was still unclear how the market would move with the contrasting conditions of firming feedstock costs amid lacklustre demand.
“It is understandable that sellers would take a cautious approach,” said a regional buyer who added it did not see many offers in the market.