Turkish base oils buyers start to re-enter market

04 February 2014 17:00 Source:ICIS News

LONDON (ICIS)--Greater levels of buying interest were reported in the Turkish base oils market this week, sources said on Tuesday.

Despite material being readily available in the Black Sea, buyers were said to be rejecting this in favour of product from the Mediterranean.

A Turkish buyer said it had purchased a mixed cargo of base oils from the Mediterranean, as “Black Sea product is not currently workable.”

It added that it would likely purchase some more SN100 and SN150 base oils for end-February delivery from the Mediterranean.

The implementation of import duties on Russian material has led to a great deal of uncertainty in the Turkish market.

As of 1 January 2014, imports from Russia and some other Black Sea countries into Turkey are now subject to an additional 4.5% tax.

This together with amended legislation has stifled trading activity further.

One trader said the market has “entered into a revival,” however, added many were opting to purchase fewer volumes than previously, owing to the recent introduction of import taxes on Black Sea material.

By Neha Popat