The posted price decreases implemented earlier this month seemed to have elicited the response that suppliers had hoped for as orders have picked up, although at a slower pace than at the same time in pre-pandemic years. A majority of paraffinic base oil producers lowered prices between 15 cents per gallon and 60 cents/gal during the first two weeks of the year, while naphthenic producers marked down pricing by 20 cents/gal to 30 cents/gal on Jan. 16.
As December and January are typically slow months in terms of buying activity and inventories had lengthened, producers had hoped that reducing prices would provide the necessary incentive to kickstart demand.
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