Volume 12 Issue 33

SSY Base Oil Shipping Report

The overhang of tonnage has diminished in the U.S. Gulf of Mexico, yet rates continue to fall. Europe has had a fairly busy week again and tonnage is scarce on some routes. Asian markets are also progressing well. U.S. Gulf of Mexico Rates have fallen on the majority of routes out of the Gulf, yet perversely the amount of prompt open space has also fallen. The best way to explain this is that while some ships have managed to latch onto cargoes that will take them well away from the Gulf, man...

Shell to Add 7th Blend Plant in China

Shell is expected to announce plans tomorrow for a new lubricants blending plant in Tianjin, in northern China. A Dow Jones Newswires report yesterday, based on a media briefing in Shanghai, said Shell will break ground Thursday for the $100 million blending plant, and that it will have 300,000 metric tons per year capacity and start commercial production in early 2015. A Shell spokesperson declined to comment to Lube Report about the report yesterday. According to Shells web site, the compan...

Taiwan Base Oil Exports Threatened

SINGAPORE – Taiwan currently exports more than 300,000 tons per year of base oil to China duty-free, but South Korea and Japan are eying free trade agreements with China that will challenge Taiwans price advantage. Taiwan currently enjoys a price advantage for base stock exports to China, thanks to the Economic Cooperation Framework Agreement, Kline & Co.s Shanghai-based Manager Flora Liu told the recent ICIS Asian Base Oils & Lubricants Conference here. Speaking Mandarin with s...

Kazakh Base Oil Plant Advances

South Koreas Hyundai Engineering Co. was awarded a contract to develop a 200,000 tons per year API Group II and III base oil plant in Kazakhstan, according to a Kazakh official with knowledge of the matter. It is certain the Koreans will build the base oil plant in Shymkent, Rahimzhan Nupbayev, an ex-director of HILL Corporation, told Lube Report Monday during a telephone call from Kazakhstan. HILL Corp., which is the country’s only lube producer, ordered the tender for developing the bas...

Oxea Keen on Acids, Alcohols

Oxea has expanded production capacity for carboxylic acids, and it will increase hydrogenation capacity to offer a broader range of higher alcohols. The chemicals, produced at plants in Germany, are used in lubricant esters and additives. The company on Friday said it increased production at its carboxylic acid plant in Marl, Germany, by 20 percent, twice as much as originally planned. Oxea operates four carboxylic acid plants worldwide, and said it plans to bring a new plant on line in Oberhau...

Chemical Prices Rise

Rhein Chemie increased prices on lubricant oil additives, Albemarle boosted prices for antioxidants used in lubricants, and Oxea raised prices on solvents. Rhein Chemie Rheinau GmbH will increase the price for its Additin lubricant oil additives by an average of 8 percent effective Aug. 15. This price increase is made necessary by the stark increases in raw material costs along with strongly rising energy and logistics charges, the company said in a press release. Rhein Chemie markets additiv...

Crankcase Flaw Draws Safety Recall

A crankcase defect led Kawasaki to recall 4,170 model year 2011 to 2012 motorcycles. The recall includes several variants of the ZX-10R Ninja motorcycles manufactured between Sept. 1, 2010, and Feb. 15, 2012, by Kawasaki Heavy Industries of Askashi, Japan and imported to the U.S. by Kawasaki Motors Corp. A crankcase flaw on the motorcycle allows engine oil to leak at the starter mounting point and pool on top of the crankcase, potentially causing a safety hazard if the oil spills onto the rear...