Resumption of activity has seen sellers gathering information as to what base oils are available and when, while buyers have been bombarding suppliers with enquiries. API Group I prices are moving upwards again.
Group I solvent neutral grades appear to be $10 to $20 per metric ton higher than previously quoted, perhaps due to anticipated acceptance by buyers, in what remains a tight market from the supply viewpoint. Negotiations have not been finalised on many new cargoes, but with a number of supply tenders looming, such as to Egyptian General Petroleum Corp. and receivers in Ghana, and others being just completed, such as to receivers in Syria, these drains on material will keep the market relatively short. At the same time they could introduce an element of price negotiation. Some producers may become competitive to secure these large pieces of regular business, and to protect their market share.
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