Bitumen prices in Africa showed a mixed trend during the first week of November. Cargo prices to West Africa dropped as crude oil and high-Sulphur Fuel Oil values weakened, while East Africa recorded slightly higher import prices due to firmer export prices from the Middle East. In South Africa, prices stayed mostly stable amid high import competition and rainy weather. Several new cargoes are arriving in November, keeping the local market well-supplied.
West Africa, Prices Fall with Weaker Fuel Oil
Bitumen prices into West Africa declined following lower HSFO values.
In Nigeria, domestic bitumen prices stayed unchanged at around 1.25 million Naira/t factory price.
Heavy rains reduced road construction activity in the past weeks, but demand is expected to rise as the region moves into its dry season.
Deliveries to West African ports reached 53,000 tons in October, mainly from Turkey and Greece, compared with just 9,000 tons in September.
Shipments were mainly sent to Togo, Nigeria, and Senegal, and more imports are expected in the coming weeks as weather improves.
East Africa, Prices Rise Slightly
Import prices in East Africa moved up, supported by higher Iranian export levels.
Drummed bitumen from the Middle East was assessed $3/t higher at $473–483/t CFR Dar es Salaam, while Kenya saw similar increases at $458–468/t CFR Mombasa.
However, paperwork delays and sanctions continued to slow trade flows, and rainfall in several areas limited construction demand.
Market participants expect demand to strengthen later in November as drier weather returns.
South Africa, Market Stable with Heavy Imports
Domestic truck prices held steady at R11,700–12,000/t factory price in a competitive market.
A wave of import cargoes up to eight shipments expected in November has increased supply and kept prices from rising.
Some small under-the-gantry deals were reported at R11,200/t, but most trades stayed near R11,500–12,000/t.
Rain slowed work during the week, though contractual projects continued at good levels.
With refinery output ended in September, import volumes have become the main source of supply. Several vessels from Pakistan and Togo are due to arrive in Durban later this month.
Outlook
African bitumen prices are expected to stay mostly stable to firm in the coming weeks.
West African demand should improve as dry weather returns, while East Africa will likely see steady import levels supported by higher export costs.
In South Africa, strong supply and competition are set to limit any price increase through the year-end.
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