Turkey's base oil production rose by 14pc on the year to 9,050t in August, according to latest government data, the highest level for the month since 2020. But domestic prices remained high, and buyers secured cheaper imports for their blending activities.
August's output was 22pc higher than the five-year average for the month. The rise comes despite sporadic production from the country's sole Group I refinery, Tupras' 400,000 t/yr Izmir plant. Tupras offered no solvent neutral grades for one week in mid-August due to issues related to the base oil unit, market participants told Argus.
Tupras' official prices were considered above market levels and local buyers looked to more competitively priced imports for their blending activities. Group I SN 150 Turkey domestic ex-tank prices averaged $938.20/t in August, compared Argus-assessed cfr Gebze and fob Black Sea spot prices of $751.25/t and $621.25/t, respectively.
Turkish base oil imports rose by 24pc on the year to 52,940t in August, which was 37pc higher than the five-year average for the month. Shipments of Group I grades were up by 21pc to 23,565t. Imports from Greece, Italy and Russia rose the most, with Russian producers continuing to target Turkish buyers in the absence of European customers.
Imports of premium-grade base oils into Turkey increased by 26.5pc year on year to 29,375t in August. Shipments from the Netherlands and South Korea went up the most.
