Weekly Bitumen Report: The Increase in Singapore and Iran Bitumen Prices after the Decrease in India

During the last week and by the announcement of a reduction in the monthly inflation rate of the USA, Brent crude oil reached around 87 USD after falling in 6 continuous weeks but that strong resistance did not break and it reached back to the level of 85 USD.

Although China shows an increase in demand, some of the global factors like inflation in the USA and Europe, the outbreak of the new variant of Corona in china, and pessimism in the global recession in 2023 stopped the upward trend of crude oil.

However, the current trend of crude oil prices led to the growth of Singapore’s HSFO CST180 up to 22 USD during 16-18 January.

On 15 January, the Indian refineries decreased bitumen price by around 29 USD and it is heard that another fall can be expected on 1st February unless the trend of the market is changed.

At the same time,  the shipping lines have announced the implementation of GRI from the 21st of January which will increase the shipping charges at least 8 USD per ton.

During the week, Singapore’s bulk bitumen was 510 USD, and in South Korea, a significant surge was observed, and it settled at 415 USD.

Bahrain bitumen is still being traded at 375 USD but some unconfirmed reports suggest a fall of around 50 USD in Bahrain bitumen price and if it comes true, Bahrain bitumen price records its lowest level since mid of 2021.

Due to the unprecedented cold in Iran, the routine activities of the refineries were disturbed. On the other hand, the increase in local transportation costs and the surge in the prices of steel sheets have led to the rise of bitumen prices in Iran.

Unlike the increase of USD value against Iran Rial, the competition over 50% among the refineries led to the increase of bitumen price in Iran.

During the second week of January, around 49K MT bulk bitumen was exported from the southern ports of Iran and it seems to be a continuous trend for the time being.

It is suggested to trace the trend of the crude oil market during the next week to find a more accurate trend in the bitumen market. But it can be said that an upward trend in bitumen price can be expected considering the current potential pressures.

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