East Asia Bitumen Market: Price Gaps Narrow Between Singapore, South Korea and China

Brent crude remained above $100/bbl at the end of the week, while commercial traffic through the Strait of Hormuz stayed at very low levels. Disruptions to Saudi Arabia’s East-West pipeline have also added pressure to alternative crude export routes in the region. For the East Asian bitumen market, the immediate impact has been higher feedstock, freight and execution costs. However, rising costs have not translated into full acceptance of higher offers by buyers.

Market discussions this week indicate that tightness is no longer limited to Singapore. Prices across Singapore, South Korea, Thailand and South China moved sharply higher, while several origins that were considered cheaper alternatives only a few weeks ago have lost much of their previous price advantage.

Singapore | Limited October Availability Keeps Prices Firm

Singapore remained one of the tightest markets in the region in terms of availability. FOB levels moved to around $718–734/MT, more than $50/MT higher than the previous week.

Available cargoes for October loading remain limited, forcing buyers with firm requirements to negotiate at higher levels. At the same time, the price increase is causing some regional consumers to reduce or postpone purchases.

In the current market, the key question in Singapore is no longer simply how much discount can be negotiated. Buyers first need to establish whether a firm cargo is actually available and for which loading window.

Malaysia | Demand Remains Moderate, but Supply Risks Are Increasing

Market activity in Malaysia remained low to moderate this week, with holidays and interruptions to some construction activities also limiting consumption.

Domestic production continues to cover a significant portion of local demand, while truck allocations from Singapore have become more limited. Some buyers are increasingly concerned that available supply could tighten quickly if project activity picks up again.

Malaysia is therefore not yet a market driven by urgent buying, but supply availability needs to be monitored more closely than in previous weeks.

Indonesia | A Two-Tier Market Between Immediate and Deferred Buyers

Higher seaborne prices continued to weigh on Indonesian demand, but buying behavior varied significantly depending on inventory and project requirements.

For buyers with low stocks or firm project deadlines, buying indications for October cargoes have reached around $790/MT CFR, while another part of the market is still considering levels around $745/MT CFR or below.

The wide gap between these indications points to a selective market rather than an inactive one. Buyers with immediate requirements are willing to pay more for executable cargoes, while those without time pressure remain reluctant to fully accept the latest price increases.

Thailand | Prices Rise as Export Supply Remains Tight

Thai export availability remained tight due to feedstock limitations, pushing FOB levels to around $720–740/MT, approximately $65/MT higher than the previous week.

Domestic demand in Thailand, however, has not strengthened significantly despite the seasonal period. This suggests that the latest price increase has been driven primarily by supply constraints rather than a meaningful improvement in demand.

Thailand remains an important regional origin, but in the current environment, actual cargo availability needs to be confirmed before entering into price negotiations.

Vietnam | High Prices Slow Consumption, While China Remains Under Watch

Vietnamese demand remained subdued as many contractors continue to face difficulty accepting current price levels.

However, limited availability from Singapore has kept South China on Vietnamese buyers’ radar. At the same time, Chinese export availability has also tightened, increasing competition for available cargoes.

Vietnam remains a market with active requirements, but transactions are increasingly focused on offers where price, delivery timing and availability can all be aligned.

South Korea | Major Shift as the Origin Loses Its Previous Price Advantage

South Korea recorded one of the sharpest price movements in the region this week. FOB levels increased to around $743–752/MT, approximately $88/MT higher than the previous week.

As a result, Korea, which had been considered one of the more competitive alternatives to Singapore, is now trading above the Singapore benchmark.

For buyers in China and Southeast Asia, the assumption that Korean material is automatically cheaper than Singapore cargo is no longer valid. Grade, freight, loading date and destination now need to be recalculated for each individual deal.

China | South China Is No Longer a Low-Cost Alternative

The sharp increase in South China was one of the key developments of the week. Export levels reached around $790–800/MT FOB South China, more than $120/MT higher than the previous week.

With Singapore availability tightening, Vietnamese buyers have increasingly looked toward China in recent weeks. However, Chinese export availability is now also limited, while higher prices have reduced the attractiveness of this alternative.

China remains a viable origin for Southeast Asian destinations, but it can no longer be considered simply a low-cost replacement for Singapore.

CIS & Central Asia | Land Trade Remains Active, but Execution Is Becoming More Critical

Unlike the seaborne market, land-based supply into Central Asia remains active. A limited number of jumbo bag cargoes for Uzbekistan and Turkmenistan have been discussed at around $385/MT FCA Lotfabad.

However, border restrictions and truck delays along the Turkey route highlight that ex-plant pricing is only one part of the purchasing decision. Border timing and execution reliability are becoming increasingly important.

Infinity Galaxy can offer Iranian and Iraqi bitumen in 1-MT jumbo bags inside steel cages for CIS and Central Asian destinations, with transportation routes adjusted according to the destination. In these markets, origin, packing, border route and delivery reliability need to be evaluated alongside price.

East Asia Market Insight by Taraneh Naraghi

The key message from this week is clearer than last week: supply tightness is gradually shifting from a Singapore-specific issue into a broader regional issue.

Singapore remains tight, Thailand has limited spot export availability, South Korea has lost much of its previous price advantage, and South China is no longer a low-cost alternative.

In Indonesia, buyers with immediate requirements are showing greater willingness to pay for executable cargoes, while Vietnamese buyers remain active but increasingly selective. Meanwhile, the CIS and Central Asian markets continue to offer opportunities, although logistics and border execution are playing a larger role in purchase decisions.

In the current environment, the lowest number on an offer sheet does not necessarily represent the most competitive deal. Origin, grade, cargo availability, loading window, freight and execution reliability, together with the final delivered price, determine whether an offer is commercially workable.