Oil Price Cut-down will not Affect Bitumen Price Constantly

This article was prepared by Razieh Gilani, the sales manager of Infinity Galaxy

The road construction global demands have significantly led to the growth of market. However, the sudden and unexpected changes of the raw material price might affect the trend of market growth.

As the wave of COVID-19 vaccination is getting stronger in all over the world, crude markets are being supported by this achievement and could lead to a revival in buying interest in time for the summer driving season

An increase in demand for petrochemical products has become the biggest driver of China’s oil consumption growing.

The strategies of the US president-elect Joe Biden on the trade and diplomacy will lead to new opportunities of the crude trade between west Africa, Europe and China.

During the last few days, oil prices followed a decreasing trend about 5% due to new variant of Coronavirus in some parts of the world but based on the latest reports and searches, this new form of the virus is controllable. This announced oil price would be approximately effective from April 2021 so it is not expected to affect bitumen price instantly while the buyers anticipate the bitumen price decrease accordingly.

In Iran IME, the competition of 19% on VB made a shock in the market and with the stability of USD value against Rial, the prices increase is expected in coming days too.

By approaching to the end of 2020, buyers prefer to close their pending deals and plan for the new businesses after the holidays. As bitumen price in Iran is almost equal to the prices of Dec. 2019 and before the outbreak of COVID-19, buyers should not expect decrease of prices in Iran bitumen market.