EMEA Base Oil Price Report 23.03.21
European, Middle Eastern and African base oil markets were rocked by large price hikes caused mainly by a lack of available products for blenders and traders. Relationships between buyers and sellers have become all important in maintaining supplies on agreed terms and under contract. Spot supplies are something of a rarity these days, with some trades being booked up to three months in advance and values being index linked to trade reports.
Most affected were the API Group I camp, with reports of sellers declaring zero availability of most of the grades through April and now into May and June. Prices rose dramatically over the past two weeks, with one of the basic problems being when blenders committed to supply finished lubricants at agreed prices back some weeks or even months ago. These operations are now faced with purchase prices that have more than doubled in some cases, leading to re-negotiations and force majeure declared in situations where no, or little material, is to be found.