For clear insight into regional Base oils-Lubes markets, you need in-depth price reports direct from those regions.
That’s why ICIS maintains a network of locally based reporters, providing not just price assessments but market commentary and analysis.
Updated to Q3 2018
Supply of Group I base oils in Europe improved throughout the second quarter, although availability of brightstock remained tight. The summer period saw a slow-down in demand, with market supply generally improving as a result. However, a buy tender from Egypt, which has been occurring for most of the year, maintained pressure on brightstock supplies, with its prices increasing and remaining at a premium to those of SN150 and SN500.
Demand for Group I base oils was quieter during the summer holiday period. Most buy interest continues to be seen for brightstock due to its comparatively tighter availability versus SN150 and SN500. Lower demand for SN150 and SN500 saw supply of these products lengthen, particularly in the case of SN500. The European export market was hit by competition for Nigerian demand, with the country more interested in product from the US due to competitive pricing there.
The European Group II market has generally been healthy in terms of supply over the second quarter, with a steady flow of material entering Europe from the US. At least four North American suppliers were offering Group II product in Europe during July, with talk of volumes on offer from Asia as well. However, prices in Europe did move up in early August amid talk of turnarounds either being underway or on the horizon.
Demand in the European Group II market was steady but at good levels during the second quarter, with suppliers noting numerous requests for material in July. The market had begun to gear up for the prospect of domestic Group II production in Europe during 2019, with ExxonMobil’s upcoming new Rotterdam unit set for completion during quarter four of this year. Players in some cases were therefore preparing to shift from Group I product to Group II.
Supply of Group III base oils was mixed during the second quarter depending on whether the product was approved or non-approved. Ample supply of non-approved product was noted within Europe and entering Europe from Russia and Abu Dhabi. Supply of approved product was tighter because of bouts of refinery maintenance in Asia during quarter two. Prices for 6cSt had traded at a premium to 4cSt at some points during quarter two, with the former tending to be tighter in supply.
Demand for Group III base oils was fairly steady during the quarter, with growing interest in Group III+ oils also noted. The seasonally slower summer holiday period had potentially dented demand but buying interest was said to have been higher in September than in August according to some parties. It is thought that this buying interest had tailed off slightly as the market progressed further through the month though, with more subdued conditions noted.
We offer the following regional Base oils-Lubes analysis and news coverage to keep you informed of factors and developments affecting prices in the Base oils-Lubes marketplace.
News & analysis
ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.
Over 25 years of reporting on key chemicals markets, including Base oils-Lubes, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in preserving our editorial integrity. Our global network of reporters in Houston, London, Singapore, Shanghai, Guangzhou, Mumbai, Perth and Moscow ensures unrivalled coverage of established and emerging markets.
The main use for base oils is in the manufacture of lubricants, of which there are many thousands of types.
ICIS provides pricing information, news and analysis for all major petrochemical and chemical markets, including Base oils-Lubes.
We offer unbiased and independent price reporting, with our price assessments being widely quoted as benchmarks in contracts.
Our information is collected from market participants by our global network of reporters, delivering unrivalled coverage of established and emerging markets, including China and Asia.
ICIS price assessments are based on information gathered from a wide cross section of the market, comprising consumers, producers, traders and distributors. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments, giving you a robust reference for your negotiations.
ICIS collects pricing data on a wide range of chemical, energy and fertilizer products, including Base oils-Lubes. Our extensive experience in price reporting means we can offer you access to historical data dating back more than 20 years for certain commodities.
Our time series of pricing data enable you to build and model trends, to get a view of where markets might be heading. The data service includes charting functionality, allowing you to chart and download multiple data series for manipulation in your own internal models. You can also export data to Excel via the ICIS dashboard service.
LONDON (ICIS)--BP’s petrochemicals business posted a 35% fall in underlying replacement cost (RC) profit before interest and tax in the first quarter...Read
LONDON (ICIS)--Chemlube will be the exclusive European distributor of Group III base oils from Abu Dhabi after signing a deal with producer ADNOC on...Read
LONDON (ICIS)--Following a volatile, unpredictable 2017, Europe's base oils market may be hoping to take a breath in 2018. Shortages where many had...Read
LONDON (ICIS)--The impact of Hurricane Harvey on refineries in the US Gulf Coast could affect supply in the European base oils market, sources said...Read