Weekly Bitumen Report: Shanghai Cooperation, Balance Change in Global Markets?

The Political and Economic Developments of the Week

Snapback Mechanism, Return of Sanctions on Global Energy

On August 28, the UK, France, and Germany started the process of Snapback activation based on Iran’s nuclear agreement. By implementing this mechanism, the old sanctions will be automatically activated, without the need for a vote. This may impact the fragile balance of the energy world; the increase of risks in the Middle East should be considered, too.
Following the violence in Gaza, Hamas announced that the urban infrastructures, especially in the north of Gaza, were damaged severely, and most of the regions under its control by Hamas were destroyed in land and aerial attacks by Israel. Once again, the ceasefire negotiations are going on, mediated by Cairo. There is no sign of less tension or significant progress in the negotiations, and the geopolitical and humanitarian risks are still high.
The 2025 Tianjin SCO summit was held from 31 August to 1 September, with the participation of leaders from Russia, China, India, Iran, and other members. The negotiations were focused on the empowerment of security, economic, and commercial cooperation. It was clear that the Asian Bloc is looking to deepen its relations against the West’s pressures. According to different reports, America and the European Union were closely tracking this summit.

Crude and Fuel Oil Markets in East Asia

Lock of Oil Price, Fragile Balance of Risk and Supply

During the last week, Brent crude oil price fluctuated in a range of $66-68. On one hand, new sanctions of America against Iran’s oil and reduction in America’s inventory were the supportive factors, and on the other hand, the outlook for excess global supply and doubts about OPEC+ decisions did not create a higher ceiling for prices. In the meantime, the geopolitical risks also prevented prices from falling further below these support levels. As a result, the crude oil price remained in the same range and did not experience any notable fall or rise.
On September 4, Singapore’s 180CST closed at $407. Bitumen prices in Singapore and South Korea were traded at $418 and $408, respectively.
In the past week, bitumen prices in Singapore and South Korea remained unchanged.

Bitumen Market in Bahrain and Europe

Recession in Europe, Absolute Stability in Bahrain

In the last few months, there were no changes in Bahrain’s bitumen price, and it is still being traded at $400. In Europe, another fall of prices was observed, and the range was observed at $370-420, which is a sign of continuous recession in Europe.

India Bitumen Market

Monsoon and Weak Stable Market in India

Influenced by the monsoon period, India’s bitumen market did not face any significant changes. The stagnation in demand and heavy rainfalls were the most important factors of this weakness compared to last week. This week, trading remained limited, and prices stayed relatively stable.

China Market

China is under the Rain and Weak Demand Pressure, Slow Fall of Prices

In East China, the import bitumen price dropped slightly. Heavy rainfall in the north and weak consumption of bitumen in the east and south of China do not allow any growth of bitumen consumption in China.

Market Analysis of Iran

Seasonal Recession in Iran, Awaiting the September Boom

Despite the activation of the Snapback Mechanism in Iran and recent high competition among the producers, the bitumen market is passing through stagnant days due to low seasonal demand, and there have been no significant changes in prices.
Typically, with the beginning of September and the bitumen export season, we should expect an increase in export trends in the coming weeks.

Insight by Razieh Gilani from Infinity Galaxy

The global bitumen market this week continued to be influenced by the shadow of politics and weather; from Europe and India, which have begun seasonal recession, to China, suffering from heavy rainfall and weak consumption. The only bright spots are the relative stability in Bahrain and the anticipation for the start of export growth in Iran with the beginning of September.
At Infinity Galaxy, we leverage our international network and direct access to Asian and African markets to provide our customers with reliable and swift solutions even in such conditions. Our role at this juncture is to create transparency and assurance for clients who need a stable partner amidst these uncertainties.

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