Over the last few days, a vast majority of paraffinic producers and rerefiners communicated posted price decreases, shortly after SK Lubricants Americas first stepped out with a downward price adjustment that went into effect on Jan. 1. Naphthenic producers also announced price decreases this week. Heavy rains and gusty winds in California caused flooding, mudslides and transportation disruptions along the U.S. West Coast.
Motiva communicated a posted price decrease for its API Group II, Group II+ and Group III grades which became effective retroactively to Jan. 1. The company’s Group II 100N and 220N base oils were adjusted down by 50 cents/gal, and its Group II 600N and all of its Group III grades were lowered by 20 cents/gal. The producer also implemented a $1.30/gal decrease on its Group II+ 50 vis (Ultra 2) and $1.95/gal on its Group II+ 70 vis (Ultra 3) cuts, but these larger revisions were thought to be a market price adjustment to bring posted prices more in line with current transaction levels.
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