Turkey's July Group I imports hold firm

Turkey’s Group I base oils imports edged up in July amid a rebound in shipments from the Mediterranean region.

Supplies from Russia also remained unusually high.

The shipments accounted for a growing share of Turkey’s Group I base oils requirements this year amid a sharp slowdown in the country’s domestic production of the lubricant feedstock.

Imports of 25,380t in July rose from 22,560t the previous month, government data showed.

The supplies boosted total shipments to 179,860t in the first seven months of the year. The volume was up 17pc from 153,470t during the same period last year.

The rise in imports contrasted with and was insufficient to counter a slowdown in Turkey’s base oils production.

The trend reflected signs of waning demand for Group I base oils at a time when regional supply had been tight, prices high and the country faced growing economic challenges.

Total imports plus domestic production combined came to 203,790t in the first half of the year. The volume was down 16pc from more than 240,000t during the same period last year.

Even so, the steady flow of Group I base oils imports this year proved more reliable than the intermittent availability of supplies from Turkey’s domestic producer.

Easing supply tightness in regional markets is likely to add to the attraction of covering requirements with base oils imports.

A pick-up in shipments from Italy reflected the improvement in supply.

Imports of 9,350t from the Mediterranean country in July rose from 5,120t in June to the second-highest level in the past 14 months.

Shipments from Italy had slumped in the first half of the year because of protracted plant maintenance work in the country.

Base oils imports from Russia also held unusually high in July for a second month. Shipments of 8,610t to Turkey in July were the second highest in more than five years. The highest had been in June.

The rise in shipments reflected the competitive prices for the supplies and the slump in demand from Europe.