Bitumen Market Analysis on 9th October 2020

During the last week below significant factors affected the market of bitumen:

1. If the Nagorno-Karabakh conflict gets longer, the regional powers might show directional bias to support each of the parties and it can affect oil price and regional equations.

2. On 8 Oct. 2020, the USA decided to impose new sanctions on all of the Iranian banks as well as the economy of Iran.

3. On 7 Oct. 2020, a new VB price was announced by ORICA for the next 15 days based on which it increased up to 5.55 % in Iran.

4. Based on initial predictions, India will decrease the rates about 10$ on October 15.

5. Till now the estimations of a decrease of USD value against Iranian Toman have not come true and it seems to be stable in the range of 29,000 Toman.

6. Most of the bitumen bulk vessels were boycott by the USA in the last two weeks and as a result, the demand for bitumen in the new steel drum has raised.

7. With respect to the plan of India Prime Minister to finish most of the civil projects, the increase of demands from Indian buyers is expected. Based on the above-mentioned factors and the complicated situation of the Middle East in the next three weeks (i.e. time of the USA presidential election), Razieh Gilani, the account manager of Infinity Galaxy believes that supply-demand conditions are in its most complicated situation of the last year and still it is not suggested to have an investing attitude in the market.