Turkey’s Group I base oils exports rose to a two-year high in July amid a jump in shipments to Europe.Group I exports of more than 7,100 tonnes in July rose from an already higher-than-usual 3,400 tonnes the previous month, government data showed.The volume was the highest since late-2021.The pick-up in exports to Europe coincided with an ongoing rise in Turkey’s base oils imports from Russia and fall in its shipments from Europe.The steep price discount for Turkey’s base oils imports from Russia versus base oils from Europe boosted the attraction of maximising flows and consumption of base oils from Russia and cutting shipments from Europe.The move also made increasingly uncompetitive the availability of any supplies from Turkey’s refiner in the domestic market.The rise in shipments from Russia instead freed up more of Turkey’s domestic base oils supplies to move to Europe, where Group I base oils prices were unusually high relative to other markets.Such a move gave Turkey the opportunity to boost base oils output, to bypass the country’s muted lube demand and low-priced supplies from Russia, and to tap Europe’s high prices. Supply trends reflected that dynamic.Domestic Group I base oils output of more than 60,000 tonnes in the first half of the year rose by more than 50% from the same period last year.Output of close to 38,000 tonnes in the second quarter rose from 22,200 tonnes during the first three months of the year to the highest level since end-2021.Most of the country’s July base oils exports moved to Greece.That country is typically a key market for shipments of Group I base oils to Turkey rather than from Turkey.A smaller volume of Turkey's exports moved to Egypt, which also boosted its shipments to Europe this year..Europe’s June Grp I exports extend fall.Turkey imports rising share of base oils from Russia
Turkey’s Group I base oils exports rose to a two-year high in July amid a jump in shipments to Europe.Group I exports of more than 7,100 tonnes in July rose from an already higher-than-usual 3,400 tonnes the previous month, government data showed.The volume was the highest since late-2021.The pick-up in exports to Europe coincided with an ongoing rise in Turkey’s base oils imports from Russia and fall in its shipments from Europe.The steep price discount for Turkey’s base oils imports from Russia versus base oils from Europe boosted the attraction of maximising flows and consumption of base oils from Russia and cutting shipments from Europe.The move also made increasingly uncompetitive the availability of any supplies from Turkey’s refiner in the domestic market.The rise in shipments from Russia instead freed up more of Turkey’s domestic base oils supplies to move to Europe, where Group I base oils prices were unusually high relative to other markets.Such a move gave Turkey the opportunity to boost base oils output, to bypass the country’s muted lube demand and low-priced supplies from Russia, and to tap Europe’s high prices. Supply trends reflected that dynamic.Domestic Group I base oils output of more than 60,000 tonnes in the first half of the year rose by more than 50% from the same period last year.Output of close to 38,000 tonnes in the second quarter rose from 22,200 tonnes during the first three months of the year to the highest level since end-2021.Most of the country’s July base oils exports moved to Greece.That country is typically a key market for shipments of Group I base oils to Turkey rather than from Turkey.A smaller volume of Turkey's exports moved to Egypt, which also boosted its shipments to Europe this year..Europe’s June Grp I exports extend fall.Turkey imports rising share of base oils from Russia
