Bitumen Weekly Report: Market Tendency to Increase in Near Future

The market of bitumen in India had a slow flow within the last week due to the factors like devaluation of Indian Rupees against the US Dollar and less demand. Therefore, buyers expect a drop in rates in other countries such as Iran. Here are several facts opposing such expectation:

• Increase in crude oil rate
• Instability of US Dollar against Rial because of unclear results of the nuclear negotiations
• Increase of vacuum bottom up to $20 per ton on 7 September 2021

Moreover, significant demands from various countries and shortage of containers by the shipping lines that created a severe issue for the exporters can be a huge obstacle against any decrease of rates in Iran in the near future. The market may even expect more increase of rates in Iran as Singapore and Bahrain have increased their range of rates too.

Although Indian refineries are planning to decrease rates by about 900 INR, the stability of crude oil in the channel of 70 US Dollars, congestions in Jebel Ali port that might be continued even up to 2022, the shortage of containers in some ports, including Bandar Abbas, are some other factors that prevent any further drop.

Considering the potential volume of road construction projects in different countries, especially the ten tenders of India that are under process to the end of October. Therefore, we can expect a more demanding market. The increase of prices can be expected while covid fear and its destroying side effects are no longer on the way of the construction projects.

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