Weekly bitumen report: Stable Days in the Market: What’s Driving the Market?
The recent events, including Prime Minister Modi’s visit to Washington, highlight the importance of regional relationships.
Over the past week, the world has witnessed a number of events that should be examined in the long term. The most prominent of these is the visit to Washington by Prime Minister Narendra Modi of India. The relationship between Iran and the United Arab Emirates (UAE) and possibly Bahrain in the region has also been of great importance. Additionally, Wagner, a private group, has been attacked in Russia and its subsequent retreat has been a major development that has had a significant impact on the global economy.
The latest estimates from Chinese analysts suggest that the consequences of the Wagner Group rebellion in Russia are largely contained and that President Putin remains the primary actor in the situation, however, significant political divisions remain evident. It will take some time to assess the economic repercussions of these events.
The price of Brent crude oil, as in the preceding weeks, remained within the range of 71-77 USD for the first three days of the current week. Singapore’s HSFO CST180 also decreased by 15 USD.
The Singapore bitumen price has reached 465 USD, following a 5 USD decrease, while South Korean bitumen has remained unchanged at 400 USD. As previously reported, Bahrain has raised its bitumen price to 20 USD and has stabilized at 390 USD. Similarly, in India, after a 35 USD decrease in mid-June, it is reported that a further decrease is anticipated on 1st July, although it is unclear to what extent the price will decrease.
Bitumen prices in Iran
On the 24th of June, the price of bitumen in Iran increased by approximately 30% as a result of the modification of the USD rate applied to the pricing formula on Monday. This resulted in a return to the previous market conditions, however, the competitions for vacuum bottom increased by up to 47%. The devaluation of the US dollar against the Iranian Rial in observance of the holiday of Eid Al-Adha further exacerbated the situation, resulting in a further increase in bitumen prices in Iran compared to the preceding levels.
To conclude:
In general, the price of bitumen in Europe has risen as a result of the seasonal demand, while the situation in Asia remains unstable. Additionally, the extreme weather conditions in the major ports of the Persia
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy