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Quarterly Bulletin Q1 2024

GenPro Quarterly Bulletin

January – March 2024

Commercial Updates

GenPro’s Commercial team actively monitors market news, trends and developments through reliable sources to keep clients informed about the vey latest price movements in key commodities.

After three years of extreme volatility, commodities prices are set to broadly stabilise in 2024. However, adverse weather conditions, escalating geopolitical tensions and soaring shipping costs are among the risks to watch.

Despite forecasts suggesting limited impact from Middle East conflicts on commodity prices, the geopolitical risks remain high. Disruptions in the Red Sea have increased freight costs and delivery times on certain routes, although global supply chain pressures remain at long-term average levels.

Energy prices gained 2% in March led by an increase in coal of 5.9% and natural gas in Europe by 5%. Non-Energy prices increased by 2.2%.

Metal prices rose by 1.4% led by an increase of 6.7% in nickel and 5.2% in tin. Precious metals increased by 6.8%.

Agricultural: Food prices inched up by 0.6%. Raw materials gained marginally by 1.1% while beverage prices surged 14%.

Fertiliser prices eased by 2.3%

Lube Oil Desk

The Lube Oil Desk provides a complete overview of market trends and new regulations, as well as the latest product developments and base oil cost movements forecast.

This quarter the below points were observed:


Distinct cost trends in Asia have influenced Group 1 (GR 1) and Group 2 differently at the beginning of this year. While prices for GR 1 increased in January, GR 2 prices experienced a decrease during the same period.

Looking ahead, there’s an industry expectations for GR 1 and GR 2 prices to converge due to the significant potential for substitution between these base oils in various applications. It’s crucial to note that not all suppliers in Asia are utilising GR 2 base oil; many still rely on GR 2 base oils offer superior anti-oxidation properties. Base oil with excellent antioxidation properties maintains their characteristics over a wide range of operating conditions including high temperatures and heavy loads. This in turn enhances stability and protects from corrosion and wear.


In Europe, prices decreased in February in line with industry expectations, apart from other minor base oils, which had a steeper decline than expected. However, current price levels are still in sustainable territory, far more in line with historic levels. From a  broader perspective, recent attacks on ships in the Red Sea have introduced a geopolitical risk premium into oil prices. Continued macroeconomic worries continue to affect demand fundamentals with Europe. This situation has been worsened not only by conflicts in the Red Sea but by other industrial actions. These factors contribute to severe supply chain disruptions, increased costs, and uncertainty within the region.


In the US, ongoing crude supply cuts and the escalating conflict in the Middle East are also the primary factors contributing to market uncertainty. Several issues are currently impacting the market, such as:

  1. The Red Sea situation: Shippers are opting for longer routes around Africa to evade Houthi rebel attacks on vessels. Consequently this may affect the availability and prices of certain oil grades.
  2. Restrictions on access to the Panama Canal: These limitations could lead to delivery delays and increased shipping costs on a global scale.
  3. Restrictions imposed by the Mexican government: Delays in the import of refined and petrochemical products could also impact the base markets in 2024.

Compliance & Sustainability Updates

In the first quarter of 2024, we have made important strides towards our set sustainability and compliance objectives.

  • Physical and remote audits: As part of our commitment to robust compliance, in Q1 we successfully conducted 10 remote and 10 physical audits, spanning key regions including Spain, Italy, and the UAE. These audits serve as a crucial mechanism for ensuring adherence to our stringent standards and fostering continuous improvement throughout our supply chain.
  • Balanced Scored Cards 2023: the C&S team sent out bespoke Balance Score Card to all GenPro contracted suppliers reflecting their Compliance and sustainability maturity.
  • Minimum Contractual Requirements: Effective communication and collaboration are integral to our success. We are pleased to report that our GenPro’s Minimum Contractual Requirements (MCRs) have been effectively communicated to over 280 suppliers and service providers. The acceptance of these requirements underscores the productive and collaborative spirit that characterises our partnerships.

As we move forward into 2024, we remain steadfast in our pursuit of excellence in sustainability and compliance.


The Terms & Conditions of each agreement are communicated upon contract conclusion via email. The member is thereafter responsible to upload the necessary information on their selected e-procurement system, as applicable.

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