Turkey March Grp I base oil imports rise

Turkey’s imports of Group I base oils rose in March for a fourth month in five as limited domestic production forced buyers to turn to overseas suppliers to cover more of their requirements.

Base oil imports of 29,690t in March rose from 23,760t the previous month and by 7pc from year-earlier levels to the highest since December, government data showed.

Imports of 79,880t in the first three months of the year were similar to the fourth quarter of last year and up from 72,840t during the same period in 2021.

Buyers have had to turn to regional suppliers to cover more of their requirements amid sporadic output from Turkey’s sole base oils unit.

Higher output in the fourth quarter of last year had given buyers the option of covering more of their requirements with supplies from the unit.

The stronger demand for regional supplies has coincided with increasingly tight availability of those supplies.

Plant maintenance in Europe and a slowdown in shipments from Russia have slashed the volume of surplus Group I supplies available for export from that region.

The tighter availability has triggered a surge in regional Group I base oil prices.

Turkey's base oil imports from Greece rose in March to a four-month high of 11,840t. Shipments from Russia also held firm at more than 5,200t.