Weekly Bitumen Report: The Antagonistic Signals and Confusion in the Market

Look at the below rates:

• 8 September 2022, HSFO CST380 , 359 USD (-32 USD)
• 9 September 2022, HSFO CST380 , 371 USD (+11 USD)
• 12 September 2022, HSFO CST380 , 385 USD (+13 USD)
• 13 September 2022, HSFO CST380 , 395 USD (+9 USD)
• 14 September 2022, HSFO CST380 , 382 USD (-13 USD)
• 15 September 2022, HSFO CST380 , 384 USD (+2 USD)

During the last 6 days ago, fuel price of Singapore dropped by around 45 US dollars totally and 35 US dollars of it was recovered within the same period. 

This fluctuation and more than 10% increase of the fuel value during only 6 days can be a sign of the market confusion.

The same situation can be true in the bitumen market. While Bahrain decreased its bitumen price around 20 US dollars, Singapore announced its unchanged bitumen price at 550 US dollars on 15 September and at the same time, India increased its bitumen price by around 9 US dollars and Iran might decrease its bitumen price in the coming days.

The main question is whether there will be any early ending to this confusion or not?

In reply, it should be said that there cannot be any early ending for this confusion due to the political drivers like Russia’s war and the implementation of new economic contractionary policy in Europe with heavy taxes for the fuel and oil companies to pass the cold season, as well as the complicated situation of the Middle East such as unclear status of JCPOA.

However, it seems that these confusions have not affected the potential demands that can be due to the delay in the previous projects, shortage of stock of the stored bitumen in different countries and the start of export season of bitumen.

On the other hand, it seems that this confusion and the growth and fall of the prices led to less sensitivity to the oil price fluctuation among the importers and exporters.

However, as we cannot expect any early ending soon, Infinity Galaxy still recommends the importers to continue their businesses back-to-back considering all of the probable conditions to avoid more risks.

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