Weekly Bitumen Report: Bullish Sentiment of Market Goes Further
Middle East Price Increase
In the last 3 weeks, bitumen prices in the Middle East have increased in several different phases. Competition on the vacuum bottom price is the main reason for this rise but we can’t neglect the effect of changes in dollar and dirham exchange rates.
Crude oil sharp increase last week also injected more bullish sentiment into petroleum product markets. The situation with oil is still complicated since the participants can’t decide on the economic state and the supply. The economic reports are showing better status after dull reports for months. There is also a possibility of the US Fed increasing the interest rate in the July meeting. Supply and demand are also in the shadow but with new reports people are noticing the supply shortage more than before. Demand seems to be in good condition compared to pre-pandemic.
Bitumen prices are expected to rise again this week since there was more completion over VB this morning.
In the Middle East, the new steel drum bitumen is in the range of $ 395 – $ 405 and the bulk bitumen is in the range of $ 305 – $ 310. The bulk of Singapore is volatile in the range of $ 445 – $ 450 and South Korea is currently $ 395 – $ 400.
This article was prepared by Mahnaz Golmohammadian, the account manager and market analyst of Infinity Galaxy.