Weekly Bitumen Report: Positive Economic Signals in China and America

By the decisive victory of Donal Trump in Super Tuesday 2024, it became almost clear that Joe Biden will be his main competitor in the next presidential election of America and gold price reached its highest level in the history accordingly. The City Group analysts believe that gold market will show a positive performance within the next months in midterm. The factors like unclear results of US presidential election, geopolitical risks especially in the Middle East and Ukraine war, and the risks of recession in America’s economy made the gold market more attractive.

The start time of interest rate reduction in America is still hazy and the analysts believe that the later it happens, the more pressure will be on gold market and the orientation of oil market will not get clear too.

With the reduction in dollar index, US stock exchange indexes, crude oil and base metal prices increased simultaneously. Oil price improved 1% and Brent and WTI reached 82.9 and 79 USD, respectively.

On Tuesday, 5 March, Li Keqiang, China’s prime minister announced the economic goals of the country at the opening session of the National People’s Congress in China. China’s government stated that it has set an ambitious target of 5% economic growth in the current year and will perform a series of various actions to strengthen its growing economy.

These optimistic views, along with the extension of voluntary supply cut by some of the members of OPEC kept in oil price in the range of 80-85 USD and the predictions suggest upward trend of the prices in this range.

On March 6, Singapore’s 180 CST increased about 6 dollars and reached 460 USD.  Bitumen price in Singapore and South Korea settled at 425 and 405 USD, respectively.

In Bahrain, bitumen market is still unchanged in the range of 360 USD and Europe recorded the range of 440-480 USD.

India seems to see a fall of 7 dollars in bitumen prices on March 15, after 3 frequent surges in the previous periods.

Considering the rise of marine transportation costs, shortage of containers, and escalation of weather situation in the Persian Gulf along with the irregular vessel schedules, export market in Iran is spending tough days.

Infinity Galaxy team with their deep insights on the market changes and trends is pleased to assist the market players to have a safe journey in this volatile path.

This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).