According to WPB, the international bitumen market continues to reflect a complex interplay of regional dynamics, geopolitical developments, and seasonal conditions. While some areas experience price stability or slight declines, others are witnessing notable volatility due to crude oil price fluctuations and shifting demand patterns. This report highlights the current landscape across major bitumen-exporting and -importing regions, including supply availability, import trends, and the anticipated outlook under the present market uncertainties.
Singapore: Stability Amid Anticipated Adjustments
In the Singapore market, prices have remained largely unchanged. However, industry insiders suggest a potential downward adjustment could occur soon, driven by broader market recalibrations.
Bahrain: Firm Prices with Upward Risk Potential
Bitumen prices in Bahrain continue to hover around $400 per metric ton, with limited availability reported. As demand strengthens in the Middle East, particularly in response to geopolitical developments, further upward movements in Bahrain’s pricing structure are likely.
Europe: Geopolitical Tensions Drive Price Surge
In Europe, the Mediterranean market has been notably affected by escalating tensions in the Middle East. Following a military confrontation involving Israel and Iran, Brent crude oil experienced a sharp rally. Consequently, European bitumen values surged by $18 to $20 per ton, placing current prices between $420 and $480 per ton. The volatility is expected to persist as the region closely monitors oil market signals.
Iran: Market Paused Due to Conflict; Calls for Realistic Transactions
Due to recent wartime disruptions, the Iranian bitumen market lacked clear price benchmarks. Stakeholders expect prices to either remain stable or fluctuate within a limited range until geopolitical clarity emerges. In this context, it is advisable for buyers to engage only with credible suppliers who have a tangible presence in the market and can offer realistic, dependable assessments, avoiding speculative commitments.
India: Demand-Driven Price Correction and Falling Imports
Following a short-lived price hike, India’s domestic bitumen market is now observing a downward trend due to tepid demand. Refiners are expected to announce further price reductions to align with the global cooling trend.
Import data reflects a significant contraction. Compared to the same period in the previous year, India imported approximately 100,000 metric tons less bitumen during the recent past. This includes a 39,500 metric ton drop in packed bitumen and a 60,000 metric ton decline in bulk imports.
Key Import Hubs:
The primary ports facilitating bitumen imports were Kandla, Mangalore, and Mumbai between December and May.
Shifting Port Activity:
During this period, Kandla experienced an import increase of around 157,498 metric tons, while Mundra saw a notable decline of about 103,024 metric tons, indicating a shift in logistical preferences or supply chain adjustments.
South Korea: Stable Export Prices, Rising Strategic Uncertainty
Import prices from South Korea to China have remained stable at approximately $435 per ton. However, ongoing military tensions in the region are expected to influence future demand trends and reshape regional trading dynamics. This may lead to adjustments in export flows, inventory management strategies, and pricing flexibility as stakeholders reassess risk and supply continuity.
China: Weather Challenges, High Inventories, and Future Uncertainties
Despite facing severe storms in the southern provinces, local bitumen prices in East China and Shandong surged, reaching around $520 per ton. This increase was largely driven by a spike in crude oil costs. However, market fundamentals remain weak due to high inventory levels and limited demand during the rainy season.
Conclusion: A Fragmented Yet Interconnected Market
The global bitumen sector currently reflects a mixture of stability, vulnerability, and adaptation. While price movements remain subdued in some regions, others are grappling with volatility stemming from macro-political disruptions and seasonal slowdowns. As markets continue to respond to shifting supply-demand balances and external pressures, stakeholders are urged to remain agile, prioritize reliable sources, and prepare for both short-term instability and long-term adjustments.
By Bitumenmag
Bitumen, Market, Price
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