This report examines the recent dynamics in global bitumen markets, driven by escalating Middle East conflicts and weather disruptions in Africa, impacting supply chains and pricing across West, East, and Southern African regions.
Rising Prices in West Africa
Significant increases in Mediterranean high-sulfur fuel oil (HSFO) prices, triggered by heightened Middle East tensions, have driven up import values for bitumen cargoes in West African markets. In contrast, East African prices remained largely unchanged.Import prices for cargoes surged due to sharp rises in crude and HSFO prices, fueled by the Israel-Iran military conflict that began on June 13. Although significant Mediterranean HSFO price increases pushed bitumen cargo prices notably higher, differentials remained stable.
Floods in Nigeria, Cameroon, and Ghana
Torrential rains caused flooding in parts of Nigeria, marking the start of the rainy season, which also impacts neighboring countries like Cameroon and Ghana. The wetter conditions significantly curtailed road paving and construction activities, particularly in Nigeria, reducing bitumen demand. Nevertheless, a steady stream of bitumen cargoes continued to arrive at Nigerian ports.
Challenges in East African Markets
Iran’s bitumen industry faces significant hurdles due to the intensifying Israel-Iran conflict, raising concerns about operational challenges and potential disruptions to export trade flows from the Middle East Gulf.Bitumen suppliers to East and other sub-Saharan African markets reported demands for higher tanker freight rates for Iranian cargo exports. However, neither Iran’s state-owned shipping line IRISL nor international container shipping lines have reported changes for drummed bitumen shipments to East African markets from Bandar Abbas to Jebel Ali (UAE).
Surging Bitumen Demand in Kenya, Somalia, and DRC
Bitumen demand surged in Kenya as buyers sought to secure bulk or drummed bitumen to mitigate risks of supply disruptions from the Middle East Gulf. Increased demand also emerged from other East African markets, such as Somalia. Suppliers are working to meet these needs while addressing growing requirements in eastern Democratic Republic of Congo (DRC), where truck deliveries recently resumed.
Concerns in Southern Africa
With Middle East cargo flows increasingly uncertain following Israel’s recent strikes on Iran, South African importers are exploring supply sources.
Subscribe now to stay updated on the latest bitumen market trends and insights!
Charts
Bitumen Prices In Africa (Updated on June 23, 2025)
