Weekly Lubricant & Chemical Report: The Lubricant Market under the Oil Shock

On September 7, there was an oil shock and the price of Brent oil fell below 90 dollars, on September 9, the price almost recovered. Oil prices reached 92 dollars by the end of the day on September 12, but dropped again to below 92 dollars on Tuesday. 

Market analysts provide various information regarding the ups and downs of oil prices, but it is not clear whether the market trend will go up or down. On the other hand, issues such as the global drop in production and China's zero-covid debate and economic recession issues are serious factors in order for the price of oil not to go too high. 

During the last week, due to the fact that different markets had almost diverse requests, the request for recycled base oil of Iran increased.

On the other hand, the lack of hope to reach a result in the JCPOA negotiations caused the exchange rate of the rial to the dollar to change in Iran, but whether the situation will change again or not is not yet clear. 

During the past week, the price of recycled base oil FOB Bandar Abbas reached 820 to 830 dollars. Caustic soda price reached the $620 FOB Bandar Abbas, but due to the exit of several caustic soda production units in China, caustic soda prices increased again, many production companies in Iran were sold out and deliveries increased to more than two months.

China Caustic Soda Market Condition

 Last week, the liquid caustic soda market was partially stable, and there was no significant change as a whole. Prices are firm for the time being, and the focus of market transactions is acceptable. It is expected that these days the liquid caustic soda market may be partially stable, and there will be no significant changes as a whole.