Weekly Bitumen Report: The Stability of Bitumen Price in Singapore and its Increase in Iran and India

After more than 9 days, the final results of election of US Senate and US House were released and finally the Democratic party became the winner of Senate and the Republican party got the seats of the parliament. On November 16, Donald Trump also announced his candidacy for the next presidential election.  These political changes have not had any significant impact over the global economic situation so far.

Also, on 16 November, two missiles were thrown at the border of Poland and Ukraine by which some of the people were killed who were from member states of NATO. The involved parties of this war, especially the USA, declare very cautious position about this happening. This event coincided with G20 meeting which was being held in Indonesia.

During the last week and by the fall of USD value against other valid currencies, oil price did not traditionally increase. High inflation, increase of interest rate, and economic crisis increased the worries about a challenging future of oil price and increased the possibility of another cut of supply by OPEC.

Bitumen price in India increased around 26.5 USD on 16 November and hence, an overall increase of 57 USD was observed in November. In the meantime, the Iranian refineries competed over 90% on vacuum bottom for the second consecutive week. The bulk bitumen price increased 15% during one month which was the highest level during the last 6 months. Besides, packed bitumen price faced an increase of 8.5% within one month.

Singapore bulk bitumen price remained unchanged at 555 USD and South Korea bulk bitumen price reached 445 USD after an increase of 5 USD. Bahrain bitumen price was also fixed at 425 USD for the sixth week.

However, although the prices have increased throughout the world, it seems that the economic crises in the different countries have led to an unpleasant export situation and more economic drivers are needed to face an increase in export rate.

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