Turkey’s Group I base oils imports stayed lower in December even with a recovery in supplies from Russia.The country's imports often rise at year-end as buyers secure surplus supplies from Europe at competitive prices.That pattern changed at the end of last year following a slump in Europe’s Group I base oils supply in October and especially November.The drop in supply cut the availability of surplus volumes available for export from Europe during the fourth quarter of the year.The lower supply also supported Europe Group I base oil export prices at levels that made the arbitrage less attractive to markets like Turkey.The country’s total base oils imports of 25,000t in December rose from 17,400t in November but fell from more than 38,000t during the same month a year earlier, government data showed.Europe’s tighter supply and firmer prices boosted the attraction of securing more shipments from Russia instead.Turkey’s base oils imports from Russia rose to more than 11,000t in December and to 102,000t in 2023.The twelve-month volume rose from 86,000t the previous year to the highest since 2015.The price discount of Turkey-bound shipments from Russia to prices for supplies from Italy widened to more than $200/t in December.The discount grew from less than $140/t in September and October to the widest since the start of last year.Turkey’s demand for Group I base oils from Russia could get further support this year if supply from Italy falls.Turkey’s imports from Italy rebounded to 113,000t in 2023, up from around 67,000t the previous year.Supplies from Italy faced the prospect of falling this year following the likely closure of a key Group I base oils plant in the country in the coming months. .Turkey’s Oct Group I imports hold firm.Europe’s Nov Grp I base oils supply falls
Turkey’s Group I base oils imports stayed lower in December even with a recovery in supplies from Russia.The country's imports often rise at year-end as buyers secure surplus supplies from Europe at competitive prices.That pattern changed at the end of last year following a slump in Europe’s Group I base oils supply in October and especially November.The drop in supply cut the availability of surplus volumes available for export from Europe during the fourth quarter of the year.The lower supply also supported Europe Group I base oil export prices at levels that made the arbitrage less attractive to markets like Turkey.The country’s total base oils imports of 25,000t in December rose from 17,400t in November but fell from more than 38,000t during the same month a year earlier, government data showed.Europe’s tighter supply and firmer prices boosted the attraction of securing more shipments from Russia instead.Turkey’s base oils imports from Russia rose to more than 11,000t in December and to 102,000t in 2023.The twelve-month volume rose from 86,000t the previous year to the highest since 2015.The price discount of Turkey-bound shipments from Russia to prices for supplies from Italy widened to more than $200/t in December.The discount grew from less than $140/t in September and October to the widest since the start of last year.Turkey’s demand for Group I base oils from Russia could get further support this year if supply from Italy falls.Turkey’s imports from Italy rebounded to 113,000t in 2023, up from around 67,000t the previous year.Supplies from Italy faced the prospect of falling this year following the likely closure of a key Group I base oils plant in the country in the coming months. .Turkey’s Oct Group I imports hold firm.Europe’s Nov Grp I base oils supply falls
