THE ARGUS ANALYSIS The typical viscosity of bright stock is 2,200-2,800. The new product also has a lower than usual pour point and higher than usual flash point. The different specifications mean the product would have to be blended with lighter viscosity base oils to match the same specifications of traditional Group I bright stock. Even with these differences, the product is expected to attract demand from blenders producing lubricants including marine lubricants and monograde engine oils. Even before the availability of these new supplies, bright stock export prices have been under pressure for much of this year. By contrast, domestic prices for bright stock have been more resilient to the oversupply. The Argus domestic U.S. spot price for bright stock was seen at $2.98/USG in end-September. The price was at a wide premium of about $0.50/USG to bright stock export prices. With surplus supplies of bright stock continuing to grow, the downward pressure on domestic and export prices is expected to persist. More Group III Supplies Target US Market The ready supplies of bright stock mirror the improving availability of Group III base oils, although these supplies reflect rising imports rather than domestic production. More Group III base oils with limited or no OEM approvals from new supply sources have moved to the United States throughout the third quarter of the year. Two large shipments of Group III base oils with limited approvals from a new plant in the Mideast Gulf moved to the U.S. Gulf Coast. The first shipment of 10,000t made up of 4cst and 6cst arrived in July. The second shipment of mostly 4cst arrived in mid-September. Another similar-sized shipment of 4cst and 8cst was set to arrive in November. Several batches of flexibag supplies of Russian 4cst base oils without approvals have also moved to the U.S. Gulf and East coasts since mid-July. A 1,600t cargo of Russian 4cst base oils arrived in the U.S. Gulf Coast in late August. Vol. 66 No. 11 * 18 * November 2016 Compoundings