Weekly Bitumen Report: Trump’s Multilateral Pressures, From Europe to China and Russia

The Political and Economic Developments of the Week

Was Trump’s Trade Game Changed by Surrounding Europe?

On July 27, in an agreement with the European Union, Donald Trump announced that tariffs on imported goods from Europe will decrease from 30% to 15%. Most analysts believe that such an agreement is a result of Europe’s response to Trump’s pressure.
At the same time, Trump threatened other countries that have not reached an agreement with the United States to impose 15-20% global tariffs; he also extended his talks with China to resolve the issue of tariffs.
In the meantime, the global crisis has got more escalated. The United States warned China to face a 100-percent tariff if it continues purchasing oil from Russia. Besides, Trump also threatened that if Moscow does not end the war with Ukraine within the next 10-12 days, the secondary sanctions will be imposed on buyers of Russia’s oil. This warning prompted countries like India to reconsider their oil purchases.
The human crisis in Gaza expanded, and the international crisis rose. Simultaneously, a formidable earthquake occurred in Russia, Japan, and Hawaii. The consequences of this incident on the global economy are not clear yet.

Crude and Fuel Oil Markets in East Asia

Brent Exceeds $72, Main Player: Sanction or Hope?

As the likelihood of an escalation in the trade war with Europe decreased and Trump issued new threats against Russia and its oil allies, Brent crude oil prices surpassed $72.21. The pressure from sanctions on Russia’s oil and a relative optimism regarding trade stability have led investors to once again turn to oil purchases.
On Thursday, Singapore’s 180CST reached $426. The prices of bitumen in Singapore and South Korea closed at $449 and $415, respectively.
During the last week, bitumen prices in Singapore and South Korea followed a stable or slightly rising trend.

Bitumen Market in Bahrain and Europe

Calm Trend of Price in Europe by Summer Holidays

In Bahrain, bitumen prices remained unchanged at the level of $400 for the last 3 months. By approaching summer holidays in Europe, bitumen prices dropped to the range of $420-460, and the market trend will probably increase in Europe by the end of August.

India Bitumen Market

India on a Downward Path; Monsoon is Playing with Bitumen Prices

Two frequent falls ($7 and $2) in bitumen prices of India led to a low trend in the market of India in July, and it is expected to continue till the end of the monsoon season.

On August 1, India’s market faced another fall in bitumen prices by about $3.

China Market

Price Growth, Inventory Pressure, China’s Market is still on Hold

Last week, the import bitumen prices of China reduced $5. However, the high inventory levels at refineries and the lack of project consumption growth have kept the market under pressure. Compared to the previous week, the price trend was positive, but there are no signs of sustainable growth in the market.

Market Analysis of Iran

Refineries Competition in the Middle of Heat and Recession

During the last week, despite a fall in demand due to worldwide climatic changes, the refineries competed up to 38% for the purchase of vacuum bottom, which sounds unexpected in such a situation. Iran’s bitumen market is under pressure to reduce its prices; however, the rise of production costs and post-war impacts keep the prices at the same level.

Insight by Razieh Gilani from Infinity Galaxy

While the market is surrounded by economic pressures, geopolitical changes, and seasonal recession, most of the bitumen markets are in a state of waiting and caution. Bitumen demand in China and India is weak; Europe is facing summer recession, and Iran’s market is under the pressure of fragile stability.
In such a situation, Infinity Galaxy not only stops its export journey but also assists its valued customers with accurate market analysis to make the right decisions confidently. We believe that true stability is built within instability.

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