Weekly Bitumen Report: Election Shadow on the Bitumen Market

As reported in last week’s report of Infinity Galaxy, the upward trend of oil and fuel price was the main player of the market since the rise of demand and fall of oil storages encouraged the investors to enter this market. Iraq, as OPEC’s second-biggest oil producer, said crude will be traded between $68 to $75 a barrel in the second half of the year.

By the start of the monsoon in India that is heard to be heavier than in previous years, the demands from India fell and IOCL decreased the rates up to 38 US dollars per ton.

Would you like to see the complete IOCL 2021 rates? Click here.

In Iran, the political atmosphere of the presidential election on 18 June 2021 made the producers and exporters more careful about their deals. There was no significant competition on the vacuum bottom and it was mainly traded on the base price. It was just in one of the announcements that had a competition of about 4.4% in Bandar Abbas. By the beginning of the new month, the increase of VB price is also expected to be announced by IME up to 10US dollars per ton.

JCPOA negotiations are still under process and it seems that the outcomes will be revealed after Iran’s presidential election.

The average range of prices in the market of Iran was reported at USD 275 – 295 PMT FOB Bandar Abbas on Bulk Bitumen and USD 340 – 360 PMT on drum packing.

On the whole, the anticipation of the raise of bitumen price in Iran and stability of prices in some of the markets is probable within the next week. The market should adjust itself to such a situation.

You can see the bitumen prices here.