Singapore’s bitumen prices climbed despite weak demand, with March-loading cargoes at $420-435 per ton FOB. Malaysia’s demand grew due to hot weather, while Indonesia’s road budget may not boost bitumen consumption until late 2025. Thailand kept stable domestic demand but limited exports. Vietnam’s market remained quiet post-holidays, with demand expected to rise in late February. South Korea’s supply outlook is uncertain due to maintenance turnarounds. China’s demand was slow post-Lunar New Year but will pick up in March. In India, tight Middle Eastern supply and funding issues led to volatile prices.
Singapore Bitumen Prices Rise Despite Low Demand
Despite slow regional consumption last week, bitumen prices in Singapore rose. According to some market participants, March production volumes in one refinery may be reduced. The sold volumes price for March-loading cargoes was $420-435 per ton FOB Singapore. Prices for February-loading cargoes were $436-455 per ton FOB Singapore, although prices were not workable for inquiries from Southeast Asia.
Malaysia’s Bitumen Demand Rises Amid Hot Weather
Demand from Malaysia was workable last week. While some contractors were still on holiday, consumption increased. This rise will pick up further in the second half of February. Some consumers welcomed the hot weather, which brings suitable conditions for road construction activities.
Indonesia’s Road Budget & Bitumen Demand Outlook
Approximately 12.5 trillion rupiah of the total budget will be allocated to roads and bridges. Only 63km of new roads and 13km of toll roads are expected to be paved this year, while 342km of roads will undergo maintenance and upgrades. A few participants estimated that this amounts to just around 40,000 tons of bitumen required. Participants declared that the confirmation of new road projects may be delayed until the second half of 2025.
Limited Export Supply in Thailand
Domestic demand remained stable at healthy levels while export supplies were kept thin. Selling indications were unchanged at around $415-425 per ton FOB Thailand.
Vietnam Bitumen Demand to Rise in Late February
Many construction companies were still on break during the last week. However, some inquiries started on 7 February. Market participants say that demand will pick up during the second half of February. Buying indications from north Vietnam were at around $450 per ton on a CFR basis, though these were met with no selling interest. Offers from southeast and northeast Asian supply sources were above $470 per ton CFR in North Vietnam. Towards the end of the week, a deal for 5,000 tons in early March was made for cargo to be loaded at around $470- 475 per ton CFR in North Vietnam.
South Korea Bitumen Supply Uncertain
No new tenders for March-loading cargoes have been released in South Korea. Some market participants say that March typically marks the start of a period of heavy maintenance turnarounds in South Korea. However, the availability of bitumen will depend on which refining units will be subject to maintenance. Buying and selling indications were maintained at about $415-420 per ton FOB.
China Demand Slow, Expected to Rise in March
Domestic demand was light as the market was slow to resume operations following the end of the Lunar New Year holidays. Most downstream contractors and businesses remained shut and will only reopen on 10 February. Demand is expected to remain slow in February as road paving projects will resume in March as soon as possible because of the cold weather in east China and Shandong province.
Tight Supply and Weak Demand in India
Bitumen supplies to India from the Middle East were tight, but lower-than-usual demand amid funding issues weighed on prices.
At least 5,000t of prompt loading VG40 cargoes were transacted in the range of $323-333 per ton FOB Iran. Offers were in a wide range of $325-345 per ton FOB Iran. Offers for drummed cargoes mainly were at $375-390 per ton FOB Iran.
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Bitumen Price In East Asia (Updated on February 11, 2025)
