Weekly Bitumen Report: Short-term Confusion and Long Term Optimism
During the last week, Syria returned Arab Union after 12 years. This might lead to the end of one of the most important tensions in the Middle East and North Africa. Whether this return leads to more political and economic peace and stability in the Middle East should be concluded by the passage of time.
Based on another report, during the 5-day holidays at the beginning of May, domestic tourism in China reached its highest level before the outbreak of Corona. This, along with the partial improvement in the economic growth of China can be a sign of improving economic conditions of the second economic power of the world.
Over the last week, after the fall in Brent crude oil prices up to 70 USD and its approximate increase to 78 USD, bitumen prices declined in all of the markets of Europe to East Asia. Bitumen prices in Singapore and South Korea got stable due to limits in demand, although it seems that the level of production in June will decrease in the main refineries of East Asia, and the prices might increase again.
However, it should be noted that the current level of Brent crude oil is predicted to be in the range of 71-80 USD, even with the good discounts of Saudi Arabia to their customers and the increase in the export level of Russia’s oil.
During the first 3 days of last week, Singapore’s HSFO CST180 increased by around 37 USD and hence it could cover the drops that happened in the last 2 weeks. Besides, Singapore’s bulk bitumen price increased by 5 USD on 10 May and it reached 480 USD. Bitumen price in South Korea was reported at around 430 USD.
In Bahrain, bitumen price remained stable at 370 USD.
Bitumen price in India is expecting to face a fall of 7-9 USD within the next day under the influence of production increase among the domestic refineries, the start of monsoon in some regions of India, the surge of imported bitumen from Iran, and the suspension of some projects in the country.
It seems that Iran is tackling a dilemma of price increase or decrease and its prices are in line with oil price changes. Within the last few days, the relative improvement in the equity of the Rial against the US dollar and the fall in the level of competition by up to 40%, the market has not found its direction yet, and most probably bitumen prices in Iran will go ahead with the changes in global prices. However, it is unlikely to observe any serious changes in Iran bitumen prices within the next week.
It is still recommended that market activists make their decisions wisely by tracing the market developments.
It is worth mentioning that the 27th Oil, Gas, Refining, and Petrochemical Exhibition of Iran will be held 17-21 May which is one of the biggest global exhibitions in this field. Infinity Galaxy company is pleased to participate in this exhibition.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (https://infinitygalaxy.org/).
