Europe's Sept exports to Russia rise

Europe’s base oils exports to Russia rose to a seven-month high in September amid a pick-up in shipments from east European countries like Romania, Hungary, and Lithuania.

The rise in exports from those markets was unusual in view of their limited base oils production capacity and usually-low shipments to Russia.

Exports of 8,470t to Russia in September rose from 7,260t the previous month to the highest since February, EU data showed.

The volume was still unusually low and down from more than 20,000t in January and in February and from typical levels of more than 22,000 t/month in 2021.

Shipments fell because of a slump in exports from key sources like Finland, Netherlands, and Belgium.

Those more regular exporting countries are major producers or distributors of premium-grade base oils.

Russia is structurally short of premium-grade supplies like Group III base oils.

A surge in shipments from several east European countries partially countered the slowdown from those more regular suppliers.

Exports of 1,870t in September from Hungary, Romania, Bulgaria and Lithuania combined rose from 1,640t the previous month to the highest in more than seven years.

Exports of 4,710t from those countries in the third quarter rose from less than 750t during the previous three months and less than 300t in the first quarter of the year.

Their combined exports to Russia came to less than 2,000t in 2021.

Romania, Bulgaria and Lithuania have no domestic base oils production capacity.

Russia has a surplus of Group I base oils, which it exports to markets like Turkey and Mideast Gulf. Europe was previously also a major outlet for its Group I base oils.

The dynamic suggested that the shipments from those east European countries could include non-Group I base oils.

The dynamic coincided with a similar and unusual rise in Chinese base oils exports to Russia in recent months. China was previously a regular importer of Russian base oils.