Recycle base oil

Recycle base oil

Recycle base oil INTRODUCTION

The importance of our quality control on recycled base oils SN500, SN150, SN350, and their export truly cannot be overstated. First and foremost, we provide you with this guideline because we recognize you as one of our key customers. Moreover, we are eager to establish a long-term business relationship with you, characterized by no quality issues and a clear understanding of our market’s preferences.

Additionally, we possess extensive experience in the export of high-quality recycled base oils, specifically SN500, SN350, and SN150. In fact, our previous shipments have demonstrated our commitment to avoiding any quality-related issues with our customers. This proactive approach is precisely why you are receiving this guide.

It is crucial for you to understand how we control quality and manage shipments effectively. Our company, Basekim CO. LTD, has operated in the base oil trading business since 2006. Notably, we export approximately 100 to 150 containers of base oil monthly, utilizing flexi-bags and reconditioned drums for our global market. Remarkably, 80% of our products consist of recycled base oils, while the remaining 20% are virgin products. Furthermore, 70% of our shipments utilize reconditioned drums, which solidifies our position among the top five exporters of base oil in the Middle East.

MARKET PROFILE

Now, let’s delve into our market profile. We observe that many countries, particularly those with limited financial resources, often cannot afford to purchase virgin base oils in significant quantities. Consequently, these buyers prefer recycled grades, provided they meet controlled specifications. Moreover, buyers tend to favor reconditioned drums because they facilitate easier transportation within their countries, thereby avoiding the need to invest in tank storage facilities. In addition, the use of reconditioned drum packaging simplifies retail trading, making it an attractive option for many customers.

SIGNING CONTRACT, COA SPEC SHEET, PRODUCT SAMPLE PHOTO / VIDEO

Moving on to the contract process, we must ensure that all terms and conditions are agreed upon from the very beginning. If any points remain unresolved, we need to discuss them before finalizing the Proforma Invoice (PI) or contract. Once you sign the PI or contract, we should consider it final. Arguing over points that we did not address in advance proves difficult and can lead to misunderstandings.

For every purchase or contract, we require several essential documents to ensure transparency and mutual understanding. Specifically, we need you to provide a signed Proforma Invoice and a signed contract. Additionally, we need a specification sheet that details the Certificate of Analysis (COA). Furthermore, please include sample photos of the oil that demonstrate its color and clarity. Lastly, we ask you to provide a video that shows the oil being poured from one cup to another. Additionally, we need you to include sample pictures of the reconditioned drums designated for this shipment. The comprehensive list includes:

a) Signed Proforma Invoice

b) Signed specification sheet or COA

c) Photo of the oil / video of oil pouring from one cup to another

d) Photo of reconditioned drums that will be supplied for this contract

OIL QUALITY

Regarding oil quality, three main points demand our attention: color, appearance or clarity, and viscosity.

Color

Firstly, the market favors lighter colors. Customers generally avoid dark-colored oils, particularly those with a color rating of 3.0 or higher. For instance, customers typically prefer a maximum color rating of 1.5 for SN150, 2.0 for SN300, and 2.5 for SN500. It’s important to understand that recycled base oil may undergo acid treatment during the refining process, which can affect color. Therefore, while color may change from the point of loading to the destination, it should not deviate by more than +0.5 from the agreed specifications. If the oil appears excessively dark or significantly exceeds the agreed specifications, it becomes challenging to achieve a good selling price locally. As a result, this leads to potential claims if customers receive unsatisfactory products.

Appearance or Clarity

Next, the appearance or clarity of recycled base oil is equally important. The oil should not be cloudy, murky, or contaminated with water or other chemicals. Sometimes, suppliers fail to exercise caution when using high-quality reconditioned drums or inadequately clean the drums. As a result, the oil may appear murky or cloudy. This issue poses a serious risk because buyers can reject the cargo and demand a full claim on the cargo’s value.

Viscosity

Finally, viscosity is a crucial factor. In countries with hot climates, buyers often prefer thicker viscosity oils like SN500. However, if a buyer orders SN150, they must receive oil that meets SN150 specifications, not anything else. Likewise, buyers purchasing SN500 must receive only SN500 oil. Unfortunately, some traders or suppliers disregard viscosity ranges and ship whatever is available in their tanks, which is entirely unacceptable. Adhering to the agreed specifications based on the contract and business confirmation is essential.

It is vital to meet both 40°C and 100°C viscosity requirements according to API standards.

API Standard Specifications

Lastly, buyers are typically familiar with API guidelines regarding base oil specifications. Therefore, we have provided a table below based on API guidelines to ensure clarity. We will purchase based on these same specifications, reinforcing our commitment to quality and customer satisfaction.

By adhering to these rigorous standards and guidelines, Basekim aims to provide our customers with high-quality recycled base oils while maintaining transparency and consistency throughout the process. Through our dedication to quality control, we strive to build trust and long-term relationships with our valued customers.

** These specifications are very important to match and stay within this range.

Load port survey report

To avoid having quality dispute upon arrival, it is important to draw sample from actual cargo at load port or supplier’s warehouse and show load port survey report to us for acceptance and approval before shipment takes place. Only with our approval and acceptance, you should make the shipment.

Sometimes, unreliable shipper will show good sample in video, photo and later on make bad quality shipment to cheat. So, to prevent this from happening, you should engage a load port surveyor from a reliable lab & analysis company. This surveyor cost is small compared to potential claims and loss due to bad quality, so you should invest in this cost for every shipment.

Load port survey result must be checked against the agreed spec based on contract or business confirmation. We will provide this “Load Port Survey Report” for every shipment.

Photo / Video proof of actual shipment

It is necessary to show video and photo update of products when products are ready for shipment, container stuffing before doors are closed and more importantly oil being pulled out from the drums or flexibag from actual cargo from actual container.

Examples as follow:

Drums lying in the supplier warehouse

Oil pulled out from actual cargo from actual contract

Oil bottle on top of the drums

Do take note, it must be actual photo, video of the oil produced for this contract and not other forwarded sample or forwarded photos from other contracts / shipments.

Packaging

Good quality reconditioned drum is as important as good quality oil (10% versus 90%)

Similar to milk put into a dirty bottle spoils the whole bottle of milk, if drum used are unclean, unwashed, have dirty or left-over chemical inside, it can spoil the whole drum.

Cost of recon drum is usually 10% of the whole CFR cost, so it is important to remember that 10% of cost can spoil the other 90% easily. So, we need to get good quality reconditioned drums first and foremost.

Source drum directly from drum factory

If possible, it is better to buy reconditioned drums from drum supplier directly and deliver to oil supplier. This way, you have better control on what types of reconditioned drums you are getting. Because if you buy both oil & drums from an oil factory, this factory may use bad quality drums lying around in his warehouse or some old additives drum in his warehouse without checking the quality and inner condition of drums.

Avoid chemical drums or adhesive drums

It is important to take note “WE WILL NOT USE CHEMICAL / ADDITIVE / ADHESIVE DRUMS”. Some chemical such as adhesive have white or milky color like glue. And they are easily soluble in the oil if the adhesive is very thin or very light viscosity (example like honey or hair gel). This again can spoil the whole drum of base oil.

And make sure there is no water left-over in the drum as this again can make the oil very milky or cloudy.

Avoid black color drum

Customers do not like black color, so black color drums should be avoided. If possible, each container should have the same color of drums – example blue, red, yellow or green.

Avoid drum logos and other manufacturer logos or unrelated markings on drums

Avoid damaged drums

Reconditioned drums should be free from dents, surface being cracked or having holes. It is long journey from port of loading to port of destination. So, if there is crack or damage on drums, oil slippage may occur during the transit time and clean-up cost will be on the shipper’s account. This is very expensive.

Ensure washing and proper cleaning inside the drum

Abc

Cap seals

Abc

Labelling

Customer import system requires two types of labelling –

a) product label marking            b) PPRD label marking

Both of these marking must be printed on the drums as instructed.

Uses for recycled oil

Industrial burner oil, where the used oil is dewatered, filtered and demineralised for use in industrial burners;

Mould oil to help release products from their moulds (e.g. pressed metal products, concrete);

Hydraulic oil;

Bitumen based products;

An additive in manufactured products; or.

 Importance to connect with us

Recycled base oil can have a lot of errors in color, clarity, viscosity and drum quality. So, it is very important to keep 3-4 good and reliable oil direct-factories at your side. It is not advisable to buy recycled base oil from trader as trader may not know who is the actual factory which produces the oil. And trader approach on quality is not as strict and strong as the end-user.

So, if you buy from unknown new supplier, the problem can happen if you do not control this factory or this factory cheats on you by shipping bad quality shipments.