Cargo price levels across Africa changed slightly. Overall, construction activity fell sharply ahead of the Christmas and New Year holidays. Bitumen prices in some important regions of this continent are discussed individually below.
Nigeria’s Demand Declines
General demand levels, especially in Nigeria, have been low due to the holiday season. Some of Nigeria’s leading bitumen suppliers pointed to a poor start in the dry season while construction activity rates and bitumen requirements increased.
Despite the festive season, the Nigerian government’s relentless push to switch to concrete from asphalt for some new projects also contributes to decreasing demands.
Kenya’s Road Sector Struggles
Kenyan road construction activity and bitumen demand were lower this year than in 2023 and 2022, mainly because of the slow government payments to contractors for road and highway work.
Mozambique Faces Disruptions
Strikes and unrest in Mozambique following the early October elections were causing intense disruptions across the country. Numerous roads were blocked, affecting the direction of bitumen and other goods.
South Africa’s Sector Slowdown
The South African construction sector and bitumen truck movements had slowed down. Leading construction companies began withdrawing machinery and equipment from road project sites the previous week, and it’s expected to restart in the third week of January.
East Africa Sees Decline
Delivered prices into East African markets tended to be softer as Iranian drummed and bulk cargo prices fell after relentless gains over several weeks, while container shipment rates were stable.
Regional activity slowed significantly ahead of the mid-December to 10-15 January recess in construction sector activity.
The holiday season has brought notable shifts to Africa’s bitumen market. For expert advice on timing your bitumen purchases, connect with our team today and make confident decisions for 2025.
