Turkey’s base oils output rose in March to a three-month high following the restart of the country’s sole base oils unit.Output of 12,300t in March rose from less than 3,500t the previous month and from just 1,620t in January, government data showed.Output of 17,280t in the first three months of the year fell by more than half from almost 41,000t during the fourth quarter of last year..Production had slumped following another shutdown of Turkey’s sole Group I base oil unit at the start of the year.These shutdowns have become increasingly frequent in recent years. Many of them are likely unrelated to plant maintenance work.The regularity of the shutdowns complicates domestic buyers’ ability to incorporate these supplies in their procurement plans. The requirement to seek supplies from other markets instead adds to demand at a time when regional availability has been unexpectedly tight.The domestic supplies are attractive for buyers in view of their availability in small volumes, the smaller time risk compared with imported shipments, and the avoidance of currency risk.Those various risks have risen in recent months as regional base oil prices have surged in response to tight supply. Turkey’s currency has also continued to weaken relative to the US dollar.The rise in domestic output in March boosted Turkey’s total net supplies – output plus net imports – to more than 68,000t that month. The volume was the highest this year and second highest in the last 11 months.Net supplies of 167,900t in the first three months of the year were the highest since the fourth quarter of 2020..Turkey March Grp I base oil imports rise
Turkey’s base oils output rose in March to a three-month high following the restart of the country’s sole base oils unit.Output of 12,300t in March rose from less than 3,500t the previous month and from just 1,620t in January, government data showed.Output of 17,280t in the first three months of the year fell by more than half from almost 41,000t during the fourth quarter of last year..Production had slumped following another shutdown of Turkey’s sole Group I base oil unit at the start of the year.These shutdowns have become increasingly frequent in recent years. Many of them are likely unrelated to plant maintenance work.The regularity of the shutdowns complicates domestic buyers’ ability to incorporate these supplies in their procurement plans. The requirement to seek supplies from other markets instead adds to demand at a time when regional availability has been unexpectedly tight.The domestic supplies are attractive for buyers in view of their availability in small volumes, the smaller time risk compared with imported shipments, and the avoidance of currency risk.Those various risks have risen in recent months as regional base oil prices have surged in response to tight supply. Turkey’s currency has also continued to weaken relative to the US dollar.The rise in domestic output in March boosted Turkey’s total net supplies – output plus net imports – to more than 68,000t that month. The volume was the highest this year and second highest in the last 11 months.Net supplies of 167,900t in the first three months of the year were the highest since the fourth quarter of 2020..Turkey March Grp I base oil imports rise
