Kazakhstan's leading road bitumen producers are preparing for a substantial production surge in August, with the combined output estimated at around 140,500 tonnes—a greater than twofold jump from July's level. Industry sources attribute this sharp increase to the completion of refinery repair, better shipping conditions, and strategic price fixing by major factories.
Earlier this month, production levels were below target at several facilities due to seasonal price rises, transportation problems, and delayed payments by state-funded organizations.
The Pavlodar Refinery, currently shut down for servicing, will increase August output twice over last month's 52,500 tonnes, a tremendous rise over the 12,000 tonnes below target in July (13,500 tonnes). This recovery ranks the refinery as one of the national production springers.
Similarly, Caspi Bitum is targeting its highest planned capacity this month, producing 60,000 tonnes compared with 28,900 tonnes in July. In a bid to push market competitiveness, the plant has reduced its wholesale price from 175,000 to 165,000 tenge a tonne (VAT included). The action, trading sources say, is aimed at compensating the plant for its geographical distance from big buyers and added competition from Pavlodar-produced products and imports.
On the other hand, Pavlodar's wholesale prices have risen slightly themselves, trading between 170,000 and 225,000 tenge per tonne from July's 165,000–220,000 tenge.
Qazaq Bitum also plans a slight August increase in production to 28,000 tonnes from July's 26,150 tonnes (aiming for 32,000 tonnes). Wholesale prices remain 255,000–260,000 tenge per tonne (inclusive of VAT), though will be adjusted depending on market conditions.
Pavlodar Refinery returned to production and export of road bitumen on July 20, which is the resumption of full-scale operation. Meanwhile, Russian imports of bitumen into Kazakhstan are now valued at $230–$260 per tonne ex-local tax at border stations.
By Bitumenmag
Bitumen, Oil, Market, Price
If the Canadian federal government enforces stringent regulations on emissions starting in 2030, the Canadian petroleum and gas industry could lose $ ...
Following the expiration of the general U.S. license for operations in Venezuela's petroleum industry, up to 50 license applications have been submit ...
Saudi Arabia is planning a multi-billion dollar sale of shares in the state-owned giant Aramco.
