Bitumen Price Trends and History

Bitumen Price

Trends and History

The International market for bitumen is growing at a fast pace. With rising demands in the construction sector and the development of roads and highways, bitumen market is expected to pick up. 

However, the political incidents are causing sever fluctuations to bitumen prices, making it difficult to forecast the future.

In this volatile market, many bitumen traders wish to understand bitumen price trends in a better way. 

To do so, major global players always consider the bitumen price history, the way prices were affected by the crude oil price, and the influence of political issues on the bitumen market.

At Infinity Galaxy we believe the more our clients have data about bitumen price in recent years the more successful they become at timing their future purchase. To eliminate price risks for our clients, we provided an informative guide about bitumen price trends in 2018 and 2019.

Bitumen Price Trends 2018

in 2018, bitumen price trends went up

Each year bitumen market experiences a wide variety of political events that make an impact on price trends. 

In 2018, trading activities were highly affected by major incidents including Venezuela’s oil production falling into its lowest level, the United States leaving Iran nuclear deal, and OPEC deciding to cut the production of crude oil.

The most important change in 2018 was an increasing gap between price trends in two major Asian suppliers, Iran and Singapore. According to Argus media, this was caused by President Trump’s decision to leave the Iran Nuclear Deal, forcing a dramatic drop to bitumen price trends in Iran’s ports.

Despite Iran’s fragile situation in the market, the quality of its bitumen is still desiring for many traders and importers. Click here for current bitumen price in the Middle East and Iran.

A list of Incidents that Affected Bitumen Price in 2018

Political Incidents in 2018 Date of Incident How Prices Were Affected?
Venezuela’s oil production collapse continues Jan-Dec 2018 Up
Humanitarian Crises Deepen in Syria Jan-Dec 2018 Up
Trump Triggers a Trade War with China May 2018 Up
The United States Leaves the Iran Nuclear Deal May 2018 Up
OPEC Cuts Production Jun 2018 Up
Murder of Jamal Khashoggi Oct 2018 Up
Humanitarian Crises Deepen Central African Republic Nov 2018 Up

Bitumen Price Trends 2019

In 2019, the world’s political turmoil imposed more ups and downs to bitumen price trends in comparison to 2018.

Key incidents that significantly hit the bitumen market were Persian Gulf ship attacks, Iranian shoot-down of U.S. drone, British and Iranian tanker seizures.

What happened to bitumen price trends in 2019
What happened to bitumen price trends in 2019

In 2019, the world’s political turmoil imposed more ups and downs to bitumen price trends in comparison to 2018.

Key incidents that significantly hit the bitumen market were Persian Gulf ship attacks, Iranian shoot-down of U.S. drone, British and Iranian tanker seizures.

Despite bitumen Market rally in 2019, prices went through a surprising slowdown in the second half of the year. In October, the bitumen Market began to lose its value, as a result of International Maritime Organization decision to set new shipping fuel standards.

A list of Incidents that Affected Bitumen Price in 2019

Political Incidents in 2018 Date of Incident How Prices Were Affected?
Persian Gulf Ship Attacks May 2019 Up
Iranian Shoot-down of U.S. Drone Jun 2019 Up
British and Iranian Tanker Seizures Jun 2019 Up
The Start of Using IMO convention 2020 Oct 2019 Down
North Korea-U.S. Nuclear Talks Stall Nov 2019 Up
U.S. Oil Production Sets a New Record of 12.8 Million BPD Nov 2019 Down
U.S. Airstrikes on Iraqi Militia and Attack on Baghdad Embassy Dec 2019 Up

Current Bitumen Price

Bitumen price is now available in both bulk and new steel drum

What Happens to Bitumen Price in 2020?

With the outbreak of coronavirus across the world, bitumen prices are down about 30% for 2020.

Because of China’s decreasing demand, the bulk and drum prices of bitumen in the Middle East fell. Other countries such as Indonesia, Vietnam, even Australia are struggling to pay for U.S. dollar-denominated bitumen, mainly because of a sharp decline in national currencies’ value. Which means lower demands for bitumen in 2020.

Operational challenges are also a burden. Shipping agencies faces problems to load and transport bitumen containers safely across the world, as a result of global ports restrictions. In Indian ports for example, vessels delay because of being forced to complete a 14-day quarantine before discharging cargoes.

Market Analysts believe the second quarter of 2020 will be as challenging as the first one for bitumen price trends.

To predict the future of prices, stay in tune with the latest bitumen news by subscribing your email below. 

With the outbreak of coronavirus across the world, bitumen prices are down about 30% for 2020