Turkey’s Group I base oils imports rose to a five-year high in December as lower prices incentivized buyers to replenish stocks.Imports from Russia stayed unusually high, extending a trend that gathered pace in the second half of last year.The surge in shipments from Russia displaced a large volume of Group I supplies from Europe. The trend added to a rise in surplus shipments in Europe during the second half of last year.The rise in shipments from Russia also outpaced a much smaller rise in Turkey’s total Group I base oils imports during the year. The share of supplies of Russian origin rose sharply in response.The trend is likely to continue this year, although there were signs that the rise in imports from Russia has levelled off.Turkey’s Group I base oils imports of 38,220t in December almost doubled from around 20,500t the previous month, government data showed. The volume was the highest since December 2017..The rise in shipments lifted Turkey’s total Group I imports to 299,910t in 2022. The volume rose by 7pc from 279,720t the previous year.Imports of 85,800t of Group I base oils from Russia in 2022 rose by a faster 87pc from around 46,000t the previous year.Imports rose at the expense of shipments from Europe. These fell by 18pc in 2022 to less than 175,000t.Ready availability and a competitive price were key attractions for supplies from Russia.The cost of base oils imports of Russian origin averaged around $1,010/t in December. The cost was at a steep discount to supplies from Greece at more than $1,140/t, and more than $1,500/t for supplies from Italy.Imports from Russia jumped to more than 11,000 t/month in the fourth quarter of the year.The volume rose from less than 7,000 t/month in the previous three months and from more typical levels of around 5,500 t/month in the second quarter.The imports showed signs of steadying at that higher level during the fourth quarter.A plateauing of supplies at that level would limit any further role for Turkey to absorb even more base oils shipments from Russia over the coming months.The EU’s ban on base oils imports from Russia from the beginning of February forced the country’s refiners to seek more alternative outlets for its supplies instead, or to cut production. .Europe’s Nov base oils imports from Russia hold steady
