What to Expect from Bitumen Market This Week, 14th November 2020

Infinity Galaxy wishes a “Diwali” full of health, wealth, joy, and prosperity for its esteemed Indian friends all over the world.

Last week, in the first two days, the lockdown was the main concern of many countries and as a result, oil prices dropped to 37$.

On Monday, 9 November, hot news was out: Pfizer Company released the COVID-19 vaccine that is more than 90% effective! It was a stimulus factor on the jump of oil price up to 44$, it had also a positive effect on the global stock markets.

On the other hand, the results of the USA presidential election were announced. At the beginning of the week, the US Dollar decreased up to 220,000 Rial but within 2-3 days, the currency fixed at the level of 260,000- 270,000 Rial.

Iran also increased VB price about 10$ in the second half the Iranian month.

All the above-mentioned points led to an increase of bitumen price up to approximately 50$/MT.

Shipping lines are going to apply GRI on the ocean freights (effective from 15 Nov. 2020) that can be another reason for a rate increase in the current market.

Till date, the oil price is following its increasing trend and it seems that with respect to the shortage of material in Indian ports, demands will increase by the end of the Diwali Festival. Based on performed investigations and surveys, it is expected the current increase in bitumen price is going to be accepted in India and all other markets that are regular clients of Iran bitumen.

This article was prepared by Razieh Gilani, the account manager of Infinity Galaxy.