Weekly Bitumen Report: The Start of Export Season with a 42-USD Increase in India Bitumen Price

After 190 days of Russia’s war against Ukraine, the USA warned its citizens to leave Ukraine more immediately which can be due to the fear of Russia’s severe attacks on Ukraine.

Russia stopped its gas transfer to Europe because of the repairs in the gas pipe of Nord Steam 1 for 3 days. However, only 20% of its capacity was transferred during the last few days. This decision of Russia has not affected the energy markets yet while it might have serious effects on the energy prices in a long term by approaching the cold season.

Till the time of preparing this article, crude oil was reported at 96 US dollars which is still fluctuating in the range of 90-115 US dollars and no special factor is affecting crude oil price in an upward way.

After the increase of 2.9% in Iran on 23 August, the refineries competed on vacuum bottom up to 5% in different days. However, there was not any significant competition.

Last week, Singapore bitumen and HSFO prices were almost fixed and, in some days, it was upward, but on 31^st August, a fall of around 37 US dollars on HSFO and 5 US dollars on bitumen price was observed.

However, the bulk bitumen of Singapore was fluctuating in the range of 570-575 US dollars and bulk bitumen of south Korea was unchanged in the range of 530 US dollars.

In Iran, the stability or a slight fall of less than 2% is predicted to be announced on 6 September.

The Indian refineries increased their bitumen prices by about 42 US dollars considering the high demand and end of monsoon season that can be a positive sign of a promising import season.

Besides, based on the news received about Iran and USA agreement, it is expected that US dollars devaluates more against Iran Rial that can lead to the increase of bitumen price in Iran.

It seems that if the market does not face any special political or fundamental factor, a smooth wave of market can be expected.

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