Weekly Bitumen Report: The Middle East Prices Increased Drastically
Crude growth
As was expected last week, demand in the Middle East continues rising and it is putting more pressure on bitumen prices. It is happening while other varieties are also pushing the prices higher. The USD exchange rate against Rial is decreasing and it has caused several spikes in vacuum bottom rates and eventually in other petroleum products such as bitumen. Competitions are the other effective factor in the prices. The competitions are leading the prices gradually higher again.
Crude oil price is also making people more hopeful about the coming future of the market. It had a positive close after months. Considering the price range it is fluctuating, it can have a new opportunity for having new growth periods. However, it is not certain at the moment and market participants are looking for more valid signs of a change in the direction.
Freights also increased during last week. They are still at very low levels due to the demand shortage.
In the Middle East, the new steel drum bitumen is in the range of $ 388 – $ 393 and the bulk bitumen is in the range of $ 291 – $ 296. The bulk of Singapore is volatile in the range of $ 440 – $ 445 and South Korea is currently $ 405 – $ 410.
This article was prepared by Mahnaz Golmohammadian, the account manager and market analyst of Infinity Galaxy.