Base oils shipments from Russia accounted for a growing share of Turkey’s base oils imports in January as the gap widened between prices for supplies from Russia and from Europe.Turkey’s total Group I base oils imports of 22,400t in January fell from 25,000t the previous month, government data showed.Shipments from Russia accounted for a 47pc share of the volume. The share rose from an already-high 44pc in December to the highest in fourteen months.Turkey’s share of imports from Russia could rise further over the coming months if availability tightens and prices rise for shipments from Europe.Supplies from that region continued to account for more than half of Turkey’s base oils imports in January.Availability in Europe is likely to tighten because of a seasonal rise in demand in the region.The planned closure of a Group I base oils plant in Italy is set to cut availability further.The plant is likely to be closed in the coming months.Firmer European base oils prices would add to the incentive for Turkish buyers to procure more supplies of Russian origin.Europe’s Group I base oils export prices rose in early March amid tighter availability of supplies for overseas markets, ICIS data showed.The higher prices raised the prospect of widening further their premium to supplies of Russian origin.The average cost of Group I shipments of Russian origin to Turkey fell to around $900/t in January.The average cost of supplies of Italian origin were steady at around $1,135/t.The discount of supplies of Russian origin to shipments of Italian origin widened in response to more than $235/t.The discount was the widest in a year.Europe’s dwindling supply of Group I base oils cushioned the impact of Turkey’s shrinking import volumes from the region.The same trend raised the prospect of a further rise in Turkey’s imports from Russia.The move would add to the importance of Turkey as a key outlet for Russia’s plentiful supply of Group I base oils..Turkey's Dec Group I imports stay lower .Eni moves ahead with Livorno refinery conversion into bio-refinery.Base Oil News stories and analysis also available on ICIS platform
