We had a different year in 2020 with many rough surprises that we had not seen anything the same in the recent decades. Oil, Bitumen and other petrochemicals also underwent a hectic situation. The dramatic plunge of the oil, sparked by the pandemic and lockdowns, led to a huge decrease in bitumen price.
Supply and demand, the two pillars of any market, altered in 2020. Bitumen demand extremely fell due to the shutdown of construction sites and confused refineries and the market. Gradually, some refineries and producers decided to cut production. The plunge in demand and supply resulted in a crisis for oil and bitumen. By the spread of the virus and death toll in February, governments decided to impose restrictions and lockdowns. Plenty of road construction projects were halted and bitumen demand declined sharply. Oil, a crucial driver of bitumen price, was preparing for a deep dive.
On 6th March, OPEC also declared an excessive cut in output. However, Russia reportedly refused to join the deepest supply cut since the global financial crisis in 2008. Oil underwent a drastic plunge after the event. Brent sharply fell by about 20% and reached $33. After oil, Bitumen price dived too.
At the beginning of 2020, a barrel of bitumen was sold at about $270 in Iran and $540 in Singapore. Singapore and Iran, one of the biggest producers in the Middle East, are two primary Asian bitumen benchmarks. In April, bulk bitumen reached out to the lowest price of 2020 in Singapore at $175 per ton. In May, Iran’s bulk bitumen got to $110 per ton after a 50% drop. New Steel drums plummeted 40% and got to $165 to record the lowest bitumen price of Asia in 2020. Infinity Galaxy has fully reviewed bitumen price 2020 in a short video as below.
Fortunately, Experts and analysts expect higher prices of bitumen in 2021. However, we should remember price analysis is a very complex procedure and requires a high knowledge of inter-market relations. Refineries and reputable suppliers are closely monitoring the market; therefore, they are the best channels to get valid reports. Infinity Galaxy’s experts regularly provide the latest analysis of the bitumen market to keep everyone updated. For more information, please visit infinitygalaxy.org