Recycled Oil Demand Rising Amid the New Covid Surge

This week, while the Iranian market was relatively calm compared to previous weeks, the Indian market fluctuated abundantly.

On April 12, the Indian rupee depreciated against the USD. This is a new concern that the Indian market has to deal with along with lockdowns and restrictions for the new Covid-19 wave.

Despite the recent rising demand of the Indian market, India may not see a recovery as rapid as initially expected because of the latest surge of new coronavirus cases. The news indicates that the government will increase the restrictions from 8 PM today, and only essential services will be allowed for the next 15 days.

Overall, demand for lubricants and base oils is expected to grow along with vaccination in Asia. It seems life is gradually returning to normal, and the transportation and automotive industry have a prosperous outlook.

Looser restrictions and increased demand for lubricants and recycled base oil are expected in the summer. Reductions in surplus inventories, as well as an anticipated rise in demand, will pave the way for a cautious recovery of oil market balance in summer.

With the slight decrease in raw material prices last week, there is still demand from Asian countries and even India for base oil and lubricants. Despite the possibility of negotiations between Iran and the United States, prices seem to be rising.

The paraffin wax market has not yet recovered to normal; however, as we mentioned in the previous weekly report of Infinity Galaxy, as long as the Chinese prices are rising for these products, we will see high demand from African and Latin American markets.

Generally, Despite the limitations of Corona and the new conditions of the market, it seems that the price needs to be adjusted in the market.