Recycled Oil Traders Moving Cautiously

Over the past week, recycled base oil prices have risen as mentioned in the last weekly report of the Infinity Galaxy. Reports indicate that coronavirus restrictions have been lifted in some parts of India. Therefore, demand is rising as expected. Due to concerns about the Covid-19 pandemic and cyclone in India, some importers have offered cheaper local prices at various ports. In the past couple of weeks, traders are still facing a shortage of raw material and supply tightness. The price of raw materials has also increased again in Iran which has led to a price escalation along with other factors. While some Indian importers are looking for prices in the market at $630 to $650, they have to be cautious about the quality of the cargo. Low-quality recycled oil has been increased recently and it has become the main issue of Iranian exporters and suppliers. The low-quality oil is transited from other countries through Iran's border and exported to the destination ports. In the current situation, among the elements of price change, the only thing that has been relatively stable in recent weeks is the freight charges of Flexi shipping. Other segments are still playing up and down. The market is still confused by the political happenings and fluctuations of the USD against the Rial. Hopes for a global economic recovery after the Corona crisis and rising demand for crude oil are some of the factors that have eased concerns about lockdowns in India and other parts of Asia. While some sources have predicted that prices remain stable and will not change significantly, crude oil prices continued to rise. Markets in Turkey, Kenya, East Africa, Southeast Asia, and even Europe are eager to import high-quality recycled base oil due to rising oil prices. Experts anticipate a price increase in the coming months. In general, the trend of recycled oil in the coming weeks is positive and the prices of western ports of India is likely to reach over $700.