By the end of monsoon season in 2021, all the potential components of the market let the prices grow and as it was reported last week, the market got ready for a significant jump. Thus, during 23- 30Septemebr, by the increase of transportation costs, Iran increased its bitumen price about 7.07% in one step and then, about 4.7% competition on vacuum bottom was observed among the refineries and hence, after a period of recession, so totally a new record was registered by a jump of about 12% within the past months.
On the other hand, it is heard that bitumen price in Singapore and produced bitumen of the Chinese refineries are expected to increase too.
The reports received from India indicate that the surge of bitumen price by about 23 US dollars is anticipated on first October.
Although India experienced a lengthier monsoon, it ended in fruitful growth in the market. Additionally, Brent crude oil exceeded the level of 80 US dollars per barrel for the first time and the prediction of touching the level of 90 US dollars came to be more possible.
By the reduction of COVID restrictions in the world, it can be expected that the severity of the pandemic will decline significantly till the mid of 2022 and it has improved the hopes of observing a more growing economy among the countries.
The turbulent circumstances of the shipping lines, the periodic increase of ocean freights, the stop of marine services to some of the ports have created a situation that transportation costs in some ports like the main ports of West Africa and South America were doubled.
India will hold 10 more tenders in October for road construction that seems to help the market flourish more.
On the whole, maybe this is the first time in the last two years that all the elements affecting bitumen price are in line with each other and there is no threat to face a drop in rates.