Weekly Bitumen Report: Bitumen Market under the Shadow of Middle East Crisis and Market Fluctuations

The Political and Economic Developments of the Week

The Middle East Crisis and Global Economic Fluctuations

The Middles East crisis and fragile ceasefire between Iran and Israel are still the most important global factors affecting different markets and the geopolitical developments in the Middle East are at the center of global market attention.
The financial markets faced tangible fluctuations in America. NASDAQ & S&P indices touched a new level; however, the US dollar value dropped to its lowest level in more than last 3 years and led to an improvement of forecasts about the fall in Federal Reserve interest rate.
In China, its economy was under the pressure of weak data from the production sector. The official statistics showed a fall in the activities of factories in June, for the third consecutive month, increasing the possibility of applying economic stimulus packages.

Crude and Fuel Oil Markets in East Asia

Relative Stability in Oil Prices and Effects of Multiple Factors

During the last week, crude oil prices fluctuated in the range of $66-68 due to a combination of high U.S. oil inventories, OPEC+’s decision to increase production, and a decrease in geopolitical risks in the Middle East. All these factors led to oil prices trading around $68 on Thursday, while the price of Singapore’s 180CST was $415, and the prices for bitumen in Singapore and South Korea were $423 and $407, respectively.

Bitumen Market in Bahrain and Europe

Stability in Bahrain and Drop in Europe, Continuation of Seasonal Demand

Despite other markets in the Middle East, bitumen prices in Bahrain remained unchanged for another week at $400. On the other hand, European and Mediterranean markets faced a fall in bitumen prices and returned to the range of $420-480. The reason for this decline was the retreat of oil and HSFO prices following the ceasefire between Iran and Israel. However, seasonal demand in Europe remains high.

India Bitumen Market

Fall in Bitumen Prices Following Ceasefire and Monsoon

Within the past week, India’s bitumen market was completely under the influence of the Middle East ceasefire and a fall in global prices. The local prices in India decreased, and Indian refineries announced a five-dollar fall in their prices on July 1. This decline was due to both the drop in import prices and the slowdown of road projects due to the onset of the seasonal period and seasonal rainfall.

China Market

Price Stability and Anticipation of Improvement after the Rainy Season

In China, the prices of imported and domestic bitumen did not change significantly this week, remaining in the range of $440-450 for imports and about $470-506 for domestic products. The Chinese market is currently facing an oversupply with relatively stable demand, and many companies have postponed new purchases due to rainfall and the slowdown of road construction projects.
Imports from Iran and Southeast Asia remain cautious and limited due to geopolitical risks and currency fluctuations. However, the market outlook is for gradual improvement in the second half of the year, especially with the end of the rainy season and the implementation of construction projects.

Market Analysis of Iran

Gradual Market Return and Export Recovery

In Iran, after the shocks of the past weeks and the price drop due to closures and war, we are now witnessing a calm return and mild price growth, and the export ecosystem of Iranian bitumen is in the process of recovery and revival. It seems that if the risks in the region decrease, bitumen exports will return to their natural trend based on summer patterns.
In these sensitive and high-risk market conditions, Infinity Galaxy continues to support its customers in the bitumen export journey by providing sustainable solutions and transparent communication, and even in critical situations, it does not cut off its effective communication.

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