The disquieting situation of India due to the new surge in COVID-19 cases remains strong and the news indicates that the lockdowns will be extended for another week. India’s healthcare system is facing a severe pandemic, and the crisis of oxygen and medicine shortages is a serious issue.
Before the pandemic situation in India, the growth of motor vehicles and the development in transport equipment manufacturing had raised expectations for high demand, but new crises have largely suppressed it. The reduction in economic activities caused by the pandemic is leading to a slower market in India. Manufacturing activities mostly stopped and not as many vehicles are purchased as previously expected. It seems that everyone is waiting for a positive change in the situation.
Although the pandemic had raised expectations for lower prices in Iranian markets, it did not fall. The finalization of the Iran-US agreement, exchange rate fluctuations, world inflation, and the lack of sharp reduction in demand has also pushed up prices.
The high price of base oil, even in this confusion and crisis, has not stopped the demand for recycled oil from the Indian market, especially since the demand for this product from the Turkish market is also increasing.
Turkish lubricant marketers are planning for new government regulations to align with European Union environmental protection. This new rule is including recycled base oil stocks in the manufacture of finished lubricants and that also requires lube marketers to collect waste oil.
Although the Turkish government was not planning to import recycled base oils because imported re-refined base oils are not included in the rates specified in the regulation, there were the loadings of this product in the past few weeks from Iran to Turkish markets.
At present, due to market conditions, no reduction is expected from the market.
Infinity Galaxy wishes better days and swift recovery for India.
This article was prepared by Tina Taghavi, the account manager of Infinity Galaxy (www.infinitygalaxy.org).