Weekly Bitumen Report: Market’s Stillness
The European Central Bank announced the continuation of interest rates in the Euro area while 1 day before it, the US Federal Reserve stopped the uptrend of interest rates for the first time since March 2022. Thus, the base interest rate in the Euro area reached 3.5% which is the highest rate in the last 22 years, i.e. from 2001. The concerns about the economic recession in Europe were previously discussed.
On the other hand, in an exclusive report, Reuters announced that in spite of USA sanctions, the export of Iran’s crude oil has reached its highest monthly level during the last 5 years.
Based on Kepler’s data, the export of crude oil in Iran exceeded 1.5 million barrels per day in May 2023 which is its topmost rate of monthly export after withdrawal from JCPOA.
In the meantime, the price of Brent crude oil was smoothly fluctuating in the range of 71-77 USD, and still, there is no positive perspective on its increase. Even some of the analysts changed their minds about their prediction about crude oil price in the second half of 2023, and it seems that they expect the level of 90 USD at most, in this period.
During the last 3 days, Singapore’s HSFO CST180 grew 5 USD, which was a lower fluctuation compared to the previous weeks. Besides, with a drop of 5 USD, Singapore’s and South Korea’s bulk bitumen prices were set at levels of 460 and 390 USD, respectively.
Like the previous months, bitumen price in Bahrain is fixed at 370 USD, but there are rumors about an increase up to 20 USD during the next days.
India experienced a fall in bitumen price up to 36 USD on 15 June and it is expected to face another drop on the first of July. Such consecutive falls were almost unprecedented among the Indian refineries during the last year. It seems the main reason for the fall in demand and bitumen price in India can be attributed to the heavy monsoon in the western ports of India.
The same situation has been reported in the southern hemisphere and some African countries on the equator.
During the last week, the average competition of 44% for vacuum bottom purchases was recorded. Besides, considering the devaluation of the USD against the Iran Rial, Iranian exporters, and manufacturers might face tougher times compared to the previous months.
On the other hand, the upcoming holidays of Eid al-Adha in Turkey and UAE led to more recession in the market too.
Like the last 2 weeks, the bitumen price in Iran has its lowest level considering the current price of crude oil. However, we at Infinity Galaxy are pleased to guide the valued buyers with their purchase decisions.
This article was prepared by Razieh Gilani, export manager of Infinity Galaxy.
