49 cabecera financiación 2019
SIGAUS increases the funding for regeneration by 17% so far this year
Given the continued fall in the price of base lubricants since November 2018, and the direct impact this is having on the price of base oils regenerated from used oils, which is also falling, the mechanisms implemented by SIGAUS to adapt financing to market reality of the market have increased the amounts paid to regeneration managers. This ensures at all times that this process continues to be the main way of treating this hazardous waste, in accordance with European and Spanish regulations.
14-05-2019
24 párrafo financiación 2019
The amounts of financing that SIGAUS contributes to the management industry as a Collective System of Extended Producer Responsibility are flexible and are adapted to the evolution of the main international oil price indicators (ICIS, for base lubricants, and PLATTS, for fuel oil). This linkage allows a continuous adaptation of financing to market variations, injecting more financing at times of low demand of the treated waste oil, or reducing it during periods of better market sales.
Despite the upward trend shown by crude oil in 2019, the price of base lubricants has not stopped falling since last autumn, already accumulating a loss close to 20% from the 'ceiling' of the month of November, in the case of Group I base oils, due to the excess supply in Europe. A situation that has directly affected the average income of the waste oil regeneration industry, which sells regenerated base oils at a price directly influenced by the market price of the base oils obtained by first refinement (ICIS).
32 párrafo cita financiación 2019
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While the price of base oils has been falling in recent months, used oil has not lost value as a raw material, directly affecting the regenerative industry.
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In this context, the financing system used by SIGAUS has reacted with a rapid response, increasing by 17% base funding for regeneration for the second quarter of 2019, over the initial 2019 basis (based, in turn, on December 2018 prices). These new values make it possible to guarantee a reasonable profit for these management companies and, therefore, to ensure that the used oil collected is regenerated in compliance with established ecological objectives.
SIGAUS has a double mechanism by which it adapts its financing to fluctuations in the market: on the one hand, a cost analysis of the different management companies (management cost, purchase cost of used oil and income from the sale of treated waste oil), which is carried out each year by an independent consultancy, and is updated quarterly with new information provided by the managers; and on the other hand, the indexation of the amounts to be financed based on the monthly evolution of both ICIS and PLATTS.
It has been a characteristic of the recent evolution of these indexes that, while the base oils (ICIS) have been falling, PLATTS Analytics have registered a clearly increasing evolution (in tune with the behaviour of oil), so that used oil has not lost value as a raw material usable for regeneration or fuel manufacturing, but used oil, once regenerated does so, directly affecting the regenerative industry. Therefore, the financing of collection and treatment operations remains stable with regards to 2018.
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