DYM Resources’s managing director Denis Varaksin recently spoke with Globuc about base oil prices and logistics, giving his forecasts for the future. Globuc is an enterprise for B2B events in energy industry, including the annual CIS Base Oils and Lubricants conference in Moscow where DYM Resources regularly participates.
According to Mr. Varaksin, from March to May 2020, base oil prices reached a minimum, which we haven’t seen since 2008-2009 financial crisis. From May 2020 on the prices started recovering. Varaksin gives Group I base oil SN150 prices as an example – in June 2020 it cost 300 dollars and by June 2021 the price jumped 4 times. From July to September 2021 there was around 30% decrease in prices for light grades, primarily SN70, SN80, SN100 and SN150, which made the light grades industry the most competitive when it comes to supply.
Heavy grades like Group III base oils and bright stock were in the deficit. But since July 2021 the market has also been correcting downward: the bright stock prices in October 2021 are around 1500 dollars/ton, while in June it was more than 2000 dollars/ton. Mr. Varaksin suggests that prices should stabilize in November-December on higher crude oil prices and growing transportation costs.
Freight costs have significantly increased since the beginning of pandemic situation: according to DYM Resources, the prices for some routes (for example, from Asia to the US) increased by 4-5 times. And even with such high prices, a place on a ship is not guaranteed. COVID-19 restrictions including a limited number of shifts in ports and workers’ quarantine slow down the unloading. The transportation prices keep growing since August and are expected to grow further.
You can find the full interview with Denis Varaksin on Globuc website.
DYM Resources is a Berlin-based independent commodity trader specializing in niche oil products such as base oil, slack wax, petroleum coke, and other oil chemical and coal chemical products. You can check the full list of the products on our website.
For base oil inquiries, please contact our sales team via firstname.lastname@example.org. We usually reply within 24 hours.