East Asia Bitumen Market, Supply Tightness Is Changing Regional Buying Options

The ongoing deadlock in US-Iran talks and the uncertainty around the safe and stable movement of energy cargoes through the Strait of Hormuz continue to put pressure on the oil and shipping markets. Brent crude moved back above USD 80/bbl at the end of the week, while concerns over refinery feedstock and the safety of shipping routes continue to affect market pricing.

In the East Asian bitumen market, these risks are mainly being seen through tighter supply rather than stronger demand. Market discussions this week showed that some buyers are willing to pay more for workable cargoes, but most of the market is still buying only for immediate needs and remains resistant to further price increases.

Singapore | Buyers Raise Their Levels, but Sellers Are in No Rush

Singapore supply for September-loading remains limited, with only a few firm offers available in the market. Feedstock constraints have also made producers less willing to increase bitumen output, even with better margins.

Recent discussions placed Singapore-origin cargoes at around USD 630/MT FOB and above, with buying interest reaching around USD 640/MT FOB in some cases. However, sellers have shown little urgency to conclude deals at these levels.

This shows that the main issue in Singapore is currently availability rather than price alone. For buyers without a strict preference for origin, alternative supply sources are becoming more important.

Malaysia | Quiet Market with Limited Interest in Imports

Malaysia's bitumen demand remains low, with market activity mainly linked to current consumption and maintenance work. Rainfall has also slowed some road paving activities.

Market discussions show that buyers prefer to delay higher-priced imports as long as domestic supply can cover their current needs.

As a result, offering a competitive price alone is not enough for the Malaysian market. Imports become more attractive when they offer a clear advantage in terms of price, availability, and delivery timing.

Indonesia | Restocking Starts, but Price Remains a Challenge

Unlike previous weeks, there are some signs of restocking demand in Indonesia, and several buyers have shown more willingness to discuss new purchases.

Buying indications for August–September cargoes were seen around USD 660–680/MT CFR, while sellers' offers remained higher and varied depending on the origin and destination port.

Indonesia could become active more quickly if restocking continues. However, buyers are not all in the same position. Some still have incoming cargoes, while others are waiting for their next confirmed requirements.

Thailand | Tight Supply and Limited Spot Availability

Thailand's export supply remains limited, while lower refinery operating rates continue to keep spot availability low.

August–September offers were mainly discussed at around USD 630/MT FOB Thailand and above, although the number of firm offers and bids in the market remains limited.

Thailand is still an important alternative origin for Southeast Asia. However, buyers should first confirm that the cargo is actually available for the required loading period before negotiating on price.

Vietnam | August Needs Mostly Covered, September Still Early

Rainfall continues to slow road paving activity, while most importers have already covered their August requirements. As a result, prompt demand was lower this week.

Singapore-origin offers remain high for many buyers, while acceptable buying levels are still below current seller offers.

At the same time, China-origin cargoes remain part of Vietnamese buyers' calculations. However, purchases are only likely when both the price and delivery schedule are workable.

South Korea | Wider Price Gap with Singapore Creates New Opportunities

The South Korean market remained relatively stable, with workable trading levels still around USD 525–545/MT FOB.

The key point this week was the wider price gap between South Korea and Singapore. This has made it more economical for some Korean cargoes to move into Southeast Asia.

However, grade and availability remain the main limitations. If Pen 60/80 is available for upcoming loadings, South Korea could become a more attractive option for some regional buyers.

China | Weak Domestic Demand, but Export Role Continues to Grow

Heavy rainfall and flooding in parts of China continue to limit domestic bitumen demand. However, the export side of the market is showing a different picture.

A large part of August cargoes from South China has already been sold, while September offers are being discussed at around USD 625–635/MT FOB South China. Southeast Asian buyers, meanwhile, are mostly targeting levels closer to USD 610–615/MT FOB.

The price gap is still preventing some deals, but with Singapore and Thailand supply remaining tight, China continues to be one of the most workable alternative origins for Vietnam and other Southeast Asian markets.

Insight by Taraneh Naraghi from Infinity Galaxy

The market message this week is clear: supply is getting tighter, but demand is still not strong enough for buyers to accept any price.

• Singapore remains tight, and sellers are not under pressure to sell.
• Malaysia has little urgency to import.
• Indonesia is showing stronger signs of restocking.
• Thailand is facing real supply limitations.
• Vietnam has already covered most of its near-term requirements.
• South Korea has become more attractive due to its wider price gap with Singapore.
• China continues to strengthen its position as an alternative supply origin for the region.

In the current market, the best opportunity is not always the cheapest cargo. A better deal is one where the origin, grade, availability, loading schedule, freight, and execution all match the buyer's actual requirements.