Weekly Bitumen Report: Economic Condition Uncertainty Flares Up
Concerns of Supply and Demand
Bitumen markets faced an uneven situation in most parts of the world. In Europe, the prices decreased compared to last week. Asia Bitumen prices in Korea and Singapore rose up and uncertainties got back to the markets in the Middle East. Traders can’t guess the direction due to these sudden changes. India, on the other hand, raised bitumen prices by 24.5 USD on August 15. This increase in rates has caused the total changes of August to reach + 50 USD.
The Middle East is under pressure by crude price, supply and demand. While Brent was rushing higher a couple of weeks ago, the bullish sentiments started fading because of new economic fears. As we get closer to the next meeting of FED, people are more afraid to see another interest rate increase. Right now, there is more possibility to see oil prices falling. Supply and demand are also shaking. Demand is rising because some regions are out of the rainy season and projects are starting.
In the Middle East, the new steel drum bitumen is in the range of $ 418 – $ 423 and the bulk bitumen is in the range of $ 330 – $ 335. The bulk of Singapore is volatile in the range of $ 460 – $ 465 and South Korea is currently $ 420 – $ 425.
This article was prepared by Mahnaz Golmohammadian, the account manager and market analyst of Infinity Galaxy.