Newsletters/ March 12, 2021
The last month of Q1 continues the trend set by the first two months of 2021, with weekly price increases in all markets and limited availability of base oils.
On top of this, the demand for base oils is expected to be even higher in the coming weeks due to the spring oil-change season for which blenders in all regions started preparing.
In Europe, the domestic market prices are still on the rise, as some of the key refineries with planned maintenance keep the stocks mostly for the local customers leaving the export market with no spot supplies. The firm demand and tight supply are expected to keep European prices high even when moving into Q2.
In Asia & Middle East, rumors are that Group III refineries in the region are sold out for the first quarter of 2021. This might be extended to the first half of 2021, affecting all the countries relying on Group III grades of this origin. On Groups I & II, upcoming heavy maintenance in Asia will tighten the already limited spot availability, impacting the export markets as well.
In the US, the freezing temperatures that hit Texas last month caused disruptions in production and unexpected shutdowns, which led to a sharp price rise and more supply tightness, driving the local blenders to book immediately any existing volumes those price levels.
For the same limited supply out of Europe/Asia/US, there is firm demand also from Africa and South America regions, making the bids even more aggressive.
In these challenging times, our commercial team is committed to find and source the best products on the spot, available for export and local markets.
What can you do?
Let us know in advance your base oils requirements, and we will find the best alternatives for you. Keep in mind, availability is limited, and stocks are selling very fast.