Europe Aug imports from Russia stay low

Europe’s base oils imports from Russia held steady at low levels in August, contrasting with an ongoing surge in Russian base oils shipments to Turkey.

The trend left Europe and Turkey’s combined base oils imports from Russia so far this year higher than year-earlier levels.

Europe’s base oils imports from Russia rose in August to a four-month high of 14,120t, government data showed.

The import volumes during the previous three months had been just below 14,000 t/month.

The supplies contrasted with average base oils imports of more than 23,000 t/month in the first four months of the year.

Imports held steady in a narrow range, rather than extend their fall, following the sharp dip in shipments in May.

The drop in shipments since May cut Europe’s total base oils imports from Russia to 147,430t in the first eight months of the year. The volume was down only slightly from 151,640t during the same period last year.

The fall in shipments left European buyers seeking alternative sources of Group I base oils especially. It also left Russian producers seeking alternative outlets for their supplies, mostly of Group I base oils.

Turkey was one such outlet.

The country’s imports of Group I and premium-grade base oils from Russia rose to more than 217,100t in the first eight months of the year. The volume was up 10pc from 197,800t during the same period last year.

The rise in Turkey’s base oils imports from Russia cut its demand for Group I supplies from Europe, especially the Mediterranean market.

The need to find a new outlet for displaced Mediterranean base oils cargoes in turn provided an alternative source of Group I supplies for European buyers.

Even if total volumes were higher, prices were likely different. Turkey-bound shipments from Russia were likely at a steep discount to market prices that the supplies previously secured when they moved to Europe.