UK launches anti-dumping investigation: Base Oils

The UK Trade Remedies Authority (TRA) is investigating alleged dumping of lubricants in the UK market at unfair prices.

The TRA will investigate whether imports of engine oils and hydraulic fluids from the United Arab Emirates (UAE) and Lithuania are being dumped in the UK and whether they are causing injury to the UK's lubricant blending industry.

The investigation was spurred by an anti-dumping application by UK lubricants manufacturer Aztec Oils.

"For too long, UK lubricant manufacturers have faced unfair competition from dumped products sold at unsustainable prices, which has had a severe impact on our industry", Aztec managing director Mark Lord told Argus today.

"By ensuring fair trading practices, we can safeguard jobs, maintain high standards of product quality, and secure the long-term prosperity of the UK lubricant industry", Lord added.

If the TRA determines a trade remedy is necessary, an Economic Interest Test (EIT) will be conducted to assess whether the implementation of a trade remedy is in the UK's economic interest, TRA said.

UK imports of engine oils and hydraulic fluids from the UAE and Lithuania have increased over the past two years. Imports in February totalled 2,219t — standing 2,157t higher than in February 2022, according to Global Trade Tracker.

European buyers have recently looked more towards importing Group I base oils, despite traditionally being a net exporter, as a result of refinery maintenance and shutdowns, curbing available supply.

More limited availability has pushed European fob Group I domestic and export spot prices up, incentivising a move towards more competitively priced material. TheArgus-assessed Group I SN 150 fob domestic and export spot price currently stands at parity ($1,110/t) with prices rising by 13pc and 31pc, respectively, since the start of the year.

By Christian Hotten