Weekly Bitumen Report: Unprecedented Gap in Rates Has not Stopped Market

The market experienced a very surprising week. Within the last weeks, there was a big gap of about 45 US Dollars per metric ton between low-quality bitumen and Iranian embossed bitumen. The interesting point was the demand of buyers on all these offers. Any type of bitumen, at any rate, was purchased by Indians and...

Razieh

Published in Jun 10, 2021

The market experienced a very surprising week. Within the last weeks, there was a big gap of about 45 US Dollars per metric ton between low-quality bitumen and Iranian embossed bitumen. The interesting point was the demand of buyers on all these offers. Any type of bitumen, at any rate, was purchased by Indians and even other importers of various countries. It is nearly the first time that the Middle East is observing a gap of 45 US dollars on the offers of bitumen.

Based on this situation, it can be mentioned that:

a) Some certain road construction projects are under process in different countries and some specific grades of bitumen or brands are required by the buyers. That is why they are ready to buy bitumen at high rates. to know the steps of buying bitumen, click here. b) Although the monsoon is approaching, COVID-19 is still affecting different regions of India. The overall export volume of bitumen dropped compared to the same period of the last year, still, considerable demands are being received from India. c) Oil price has two possible scenarios, including the upward trend with a 65% possibility of reaching higher than 70 US dollar per barrel and a downward trend to reach less than 70 US dollar per barrel. However, both can be a sign of a jump in bitumen price from suppliers’ sides. d) The start of the monsoon will limit the road construction projects that can lead to the drop of rates in the market from the buyers’ side. Besides, ready stocks in India are being sold at about 31,000 INR. In April 2021, the imported quantity of bitumen in India was 310,000 MT and a drop of 53,000 MT was observed. On the whole, it can be concluded that the present market is confusing and the status of supply and demand is not clear. Infinity Galaxy recommends that buyers do not consider it as an opportunity for investment and avoid hasty decisions. This article was prepared by Razieh Gilani , the sales manager of Infinity Galaxy (www.infinitygalaxy.org).

Weekly Bitumen Report: Unprecedented Gap in Rates Has not Stopped Market

Razieh

Published in Jun 10, 2021

Weekly Bitumen Report: Unprecedented Gap in Rates Has not Stopped Market

Based on this situation, it can be mentioned that:

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Weekly Bitumen Report: Unprecedented Gap in Rates Has not Stopped Market

Based on this situation, it can be mentioned that:

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