LONDON (ICIS)--Domestic barge prices for SN150 base oil have been assessed slightly down on feedback indicating some refiners and traders are offering discounts amid plentiful supply, ICIS data showed on Tuesday.
The Group I domestic market was described as oversupplied and with prices under pressure for certain grades by consumers and traders.
Certain refiners were again heard to be offering bulk volumes of solvent neutrals at substantial discounts, with prices based on the ICIS European export quotations.
Offers are understood to have been made at the ICIS export low plus $15/tonne, equivalent to $1,000/tonne FOB (free on board) NWE (northwest Europe) for SN150 and $1,085/tonne FOB NWE for SN500.
While these low prices could not be confirmed with the refiners, some consumers said the market is very competitive and that suppliers are reducing prices in order to push through sales, although the discounts heard were relatively modest and were limited to SN150.
One refiner insisted it has not reduced its prices. It said demand in July was lower than in June, but that this was expected. Further, it added it has reduced its production output to match this lower demand, so as not to develop an oversupply.
Other sources noted the market is fairly quiet, with a number a participants away on summer holidays.
Barge prices for SN150 were assessed at $1,095-1,145/tonne FOB NWE, down $5/tonne.