Tuesday, 25 March 2014

Lube Report 26 March 2014

March 26, 2014
Volume 14 Issue 13

Lube Report

Vertex Energy agreed to buy Omega Holding’s rerefining assets, including a used oil collection network, two facilities in Louisiana, the Bango Oil rerefinery in Nevada, and Cam2 International’s lube oil blending plant in California, for nearly $50 million in cash, stock and assumed liabilities.

A coalition that includes ILMA, the American Chemistry Council and rerefiner Safety-Kleen oppose a bill to mandate that motor oils sold in California after Jan. 1, 2017, have at least 25 percent “biosynthetic” content.

After climbing steadily for more than a decade, U.S. imports of base oils flattened out in 2013, the first year in 10 that did not see a gain.

Brazil’s lubricant oils market reached 1.37 million tons in 2013, which represents growth of 8.3 percent over 2012, far exceeding national GDP growth of just 2.3 percent.

Eastman Chemical plans to expand capacity for 2-ethylhexanol – used in lube additives – in late 2014, and Oxea started basic engineering for a 2-EH and propanol unit. Both projects are planned at sites in Texas.

Wyoming, Mich.-based Industrial Innovations has acquired Advance Products Corp.’s die casting Automation division. Terms were not disclosed.

Shell yesterday opened an 8,600 square meter, nine-story lubricants and oils technology center in Shanghai, China.  Umongo Petroleum Additives will distribute Chevron’s base oils in South Africa and Sub-Saharan Africa.  Paris, France-based specialty lubricants and synthetic esters manufacturer Nyco will open a new office in Panama.

Last week’s article about the impact on lubricants of low speed pre-ignition said researchers found that “higher viscosity PAO showed higher LSPI.” Ken Hope of Chevron Phillips Chemical Co. pointed out that this reference is comparing 8 cSt PAO to 4 cSt PAO.

Base Oil Reports

U.S. Base Oil Price Report

Early this week, Motiva announced that it would be raising posted base oil prices on March 26, and Phillips 66 followed with an announcement of its own shortly after.–by Gabriela Wheeler

EMEA Base Oil Price Report

Europe has witnessed API Group I price increments, with fewer capable sellers now requesting higher numbers almost on a day-by-day basis.–by Ray Masson

SSY Base Oil Shipping Report

European markets continue to thrive, and space is often scarce. Meanwhile the U.S. seems incapable of assembling sufficient export cargoes to fill even the moderate amount of open tonnage in the U.S. Gulf. Asian export is busy, but domestic Asia is slow.–by Adrian Brown

Monday, 24 March 2014

Lube Report 25 March 2014

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March 25, 2014
Volume 1 Issue 12

Lube Report

Engine oils in Asia tend to lag behind oils from Europe and the Americas in their ability to prevent deposits around piston ring belts, while Asian and European oils lag those from the Americas in terms of fuel efficiency.

Having the world's largest automobile market as their home creates opportunities for Chinese car and truck makers. But they also face big challenges, according to one observer, who says domestic independents need to reduce air emissions and improve their global business structures.

India recently announced a new schedule of mandates to raise the fuel efficiency of passenger cars over the next eight years. Observers say the rules will compel automakers to invest in new technologies and should help spur use of higher quality lubricants.

Seoul-based chemical trader ISU Exachem Co. has been appointed export agency for the Hyundai Oilbank-Shell joint venture that is building an API Group II base oil plant in Daesan, South Korea. Exachem will be responsible for developing the 60 neutral and 150N market. Chevron Sri Lanka is building a U.S. $15 million blending plant in Sapugaskanda, Sri Lanka, to replace its existing facility in Kolonnawa. Glander International Bunkering, U.A.E., announced that Euwyn Tan joined its Singapore office as a bunker and lubricant trader.

Base Oil Reports

Asia Base Oil Price Report

There appear to be conflicting currents affecting base oil prices in Asia, with the low-viscosity grades exposed to upward pressure and the high-vis cuts seeing some softening. – by Gabriela Wheeler