Weekly Bitumen Report: Stable Days in the Market Continues
During the last week, the world observed various incidents whose impacts should be investigated in long-term.
The first and most important event was the travel of Mr. Narendra Modi, India’s prime minister, to Washington. The developments in the relation between Iran and UAE, and most probably Bahrain, in the region was another significant happening. The last point is the attack of the private group of Wagner to Russia and its further retreat was another important news affecting the world’s economy. Based on the latest estimations of the Chinese analysts, it is believed that the outcome of Wagner Group revolt in Russia is under control and Putin is still the top controller of this situation but deep political gaps are obvious. More time is needed to see the effects of these events on the economy.
Like the last few weeks, the price of brent crude oil remained in the range of 71-77 USD within the last week. During the first 3 days of the week, Singapore’s HSFO CST180 dropped around 15 USD. The bitumen price in Singapore reached 465 USD, after 5 USD drop and South Korea’s bitumen was traded unchanged at the level of 400 USD. As mentioned in the last week report of Infinity Galaxy, finally Bahrain increased its bitumen price up to 20 USD and got stabilized in the level of 390 USD. In India and after the fall of 35 USD in mid. June, it is heard another fall is expected on 1st July but it is not clear to what extent it will drop.
On 24 June, bitumen price in Iran increased around 30% due to the change in USD rate used in the pricing formula. The modification in the formula on Monday led to see the previous market situation but the competitions up to 47% to purchase vacuum bottom and the devaluation of USD against Iran Rial due to Eid al-Adha holiday changed the situation and bitumen price in Iran increased more comparing to the previous levels.
Generally, bitumen price in Europe has increased due to the seasonal demand while it has a fragile situation in Asia. Besides, the hot weather in the main ports of Persian Gulf has slowed down the logistic operations.
Infinity Galaxy team is ready to help you with the best choices and solutions in this situation.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).
