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Russian base oil exports drop in 2020 below 1 million ton

Lubes’n’Greases, an independent international magazine about lubricants industry, mentioned DYM Resources’s managing director Denis Varaksin in an article about Russia base oil exports decrease last year because of COVID-19.

Russia’s base oil exports drop in 2020 is 12% and the reason for that is the decrease in demand mostly during March–June in Europe and Turkey – the main destination for Russian base oils – because of the COVID-19 lockdowns.

Russia is top-6 base oils exporters among USA, South Korea, Netherlands, Spain and Italy.

DYM Resources’s Denis Varaksin commented on the situation:

“For the first time in five years exports from Russia fell below 1 million tons… Demand from the Russian domestic market was limited by the coronavirus pandemic lockdowns and the weaker economy”.

According to Varaksin, no base oil plants in Russia shut down in 2020. Despite the decrease in overall export volume Lukoil remained the main exporter controlling over 50% of the base oil exports loading in 2020.

You can read the full article by Boris Kamchev here.

Global market remains tight in 2021, Russian export to grow

DYM Resources predicts that, in case of a positive scenario, Russia base oil export will rise back to about 1.1 million tons if the demand from Europe and other key importers such Africa and Latin America reappears. In 2019 Russian base oils export was 1.12 million tons.

Russian base oils export returned to normal levels in November-December 2020 and in 2021 is expected to be at average level for last three years or above that on high base oils production and limited demand from domestic buyers in Russia. Also, Taneco refinery (200kt/yr Group II/III) owned by Tatneft and Angarsk refinery (250kt/yr Group I), owned by Rosneft finished their maintenance in September – October and added to export loadings by the end of the year.

DYM Resources expects deficit in base oil market to remain till June-July 2021 as refineries in Europe and USA have limited running rates due to the weak demand for fuels. Demand for fuels is hurt by extended lockdowns in USA and Europe which started in November-December and are expected to last till at least end of January 2021.

At the same time important export oriented have started building stocks ahead of spring maintenance season. Gazpromneft plans shut down at its Omsk plant (230kt Group I base oils per year) in February for about 1 month. That may worsen bright stock BS-150 availability for export from Russia. European refineries Lotos (245kt/yr, Grp I) and Mol (195 kt/yr, Grp I) will have maintenance in April-May for about 1 month each. Group II supply will be limited GS Caltex plans shut down at its Yeosu refinery (23,000 barrels per day unit).

Russia remains major Group I supplier, especially for rare grades such as SN350 and SN900 which are popular in many import destinations.

DYM Resources is a base oils trader with headquarters in Berlin, Germany. The company is offering a wide range of base oils, including Group I, II and III as well as finished lubricants and additives. DYM Resources exports base oils and waxes from Russia, Uzbekistan, Turkmenistan, Europe and other locations in flexi-containers, iso-tank, trucks, rail tank cars and bulk vessels. For base oil and other inquiries please do not hesitate to contact us: info@dymresources.com