Turkish base oils buyers look west for product

21 January 2014 15:32 Source:ICIS News

LONDON (ICIS)--Buyers in the Turkish base oils markets are rejecting Black Sea product in favour of European due to new import duties, sources said on Tuesday.

“We are not considering Russian product – we pay 4.5% extra tax. Russian price is now more than the European price. We are more open to European offers”, said one buyer.

“I have heard Russian product is not popular in Turkey. Instead they are buying European, American and Iranian product”, said one trader.

The new import duty has come as Russia lost less developed status under the Generalised System of Preferences (GSP) scheme. 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.

Volumes in the Turkish base oils market are said to be improving after two months of very thin trading.

“Business is increasing, but compared to previous years is lower”, said one local producer.

Trading has been limited due to legislation difficulties including new import licences and additional deposits needed at the port.

By Rhian O'Connor