Bitumen Price History and Trends

Bitumen Price Trends
in 2018 and 2019 + Video

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.

Would you like to know the exact price of bitumen today? Click on the Bitumen Price Today page. 

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. 

A list of Incidents that Affected Bitumen Price in 2018

Political Incidents in 2018Date of IncidentHow Prices Were Affected?
Venezuela’s oil production collapse continuesJan-Dec 2018Up
Humanitarian Crises Deepen in SyriaJan-Dec 2018Up
Trump Triggers a Trade War with ChinaMay 2018Up
The United States Leaves the Iran Nuclear DealMay 2018Up
OPEC Cuts ProductionJun 2018Up
Murder of Jamal KhashoggiOct 2018Up
Humanitarian Crises Deepen Central African RepublicNov 2018Up

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.

You can also have a look on this video that reviews the bitumen price in 2018-2019.

A list of Incidents that Affected Bitumen Price in 2019

Political Incidents in 2018Date of IncidentHow Prices Were Affected?
Persian Gulf Ship AttacksMay 2019Up
Iranian Shoot-down of U.S. DroneJun 2019Up
British and Iranian Tanker SeizuresJun 2019Up
The Start of Using IMO convention 2020Oct 2019Down
North Korea-U.S. Nuclear Talks StallNov 2019Up
U.S. Oil Production Sets a New Record of 12.8 Million BPDNov 2019Down
U.S. Airstrikes on Iraqi Militia and Attack on Baghdad EmbassyDec 2019Up

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.

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