More news on PAO

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ExxonMobil announced that they expect the Beaumont plant to be online by the end of the year.

Before the shut down the PAO market was balanced or a little behind demand. Since Beaumont provides a little over 30% of the North American market share of PAO it has had considerable impact.

Light viscosity PAO doesn't seem to be an issue but heavier stocks are only produced by 2 of 3 providers in the US.

As new regs and specs become standard its going to be a tight market in the years to come.
 
My WalMarts here in SW Fl. is out of Mobil 1. Selves are now filled with Mobil 5000. Isn't it interesting that the same WM have raised the price of PP to $23/5Q jug at the same time Mobil 1 disapeared. Suppose there is a connection-hehe
 
I stopped by a Wal-Mart in another neighborhood (not so affluent) where in the past there has been a lot of synthetic products on the shelf. I don't think they sell well in this demographic cross-section. Well, even at that store there were very little quantities of M1 products, nearly all of the 5-quart jugs were gone and only about half a shelf of the single quarts. On the remaining 5-quart containers it was only the extendend stuff, all the regular M1 was gone.
 
Originally Posted By: Eddie
My WalMarts here in SW Fl. is out of Mobil 1. Selves are now filled with Mobil 5000. Isn't it interesting that the same WM have raised the price of PP to $23/5Q jug at the same time Mobil 1 disapeared. Suppose there is a connection-hehe


My local WM's have individual PP quart at $4.01/qt and $23/5qt jug. This telling me that they bought PP quart bottles at the old price and 5 quart jugs at the new price. They can easily change the price of quart bottles to $5 or more but they didn't do it.

It is very normal business practice to charge a percentage profit above the purchase price. They paid less for quart bottles a while ago that why it costs less, they paid more for 5 quart jugs now that why it costs more.
 
WalMart often sell larger quantity items at a higher cost than multiple smaller sizes. It's a bulk penalty. I suspect they believe (probably correctly) that most people don't compare the prices but just automatically assume the larger size is a bettter deal. Not always.
 
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