Bitumen Market Trends in East Africa
Iranian bulk cargo rates dropped $1.40/t to $337.20-345/t fob Bandar Abbas, while drummed export prices fell $4/t to $379-398/t fob Bandar Abbas. Freight rate assessments for drummed bitumen remained steady at $105-115/t for Bandar Abbas-Jebel Ali (UAE) to Mombasa, Kenya, and $120-130/t for Bandar Abbas-Jebel Ali to Dar es Salaam, Tanzania, and Djibouti.
Growing Infrastructure Fuels Demand in Kenya
Local suppliers noted enhanced project activity and bitumen needs in Kenya, where economic conditions have recently strengthened, supporting increased public and private investment in roads and other initiatives.
Market observers highlighted that despite a rise in Kenya’s inflation to 4.1pc in April—an eight-month peak—inflation has consistently stayed below the 5pc central bank target midpoint. The IRISL vessel Neshat offloaded an unspecified amount of drummed bitumen at Mombasa port on 14 May, following prior bitumen deliveries and various goods to Dar es Salaam.
Construction Sector Speeds Up in Uganda
Uganda’s construction industry has been slow to start this year, but signs suggest road and highway projects may resume by late May or early June, boosting regional bitumen demand.
Navigating Finance Blocks in Ethiopia
Suppliers are working to resolve trade financing obstacles affecting bitumen sales to Ethiopia. A regional source estimated 2024 bitumen demand at 45,000-50,000t.
Competitive Pricing in South Africa
Local truck price assessments decreased by Rand 800/t to R11,000 as imported cargo volumes were offered to domestic buyers at significantly reduced rates compared to prior weeks. Despite colder weather with the southern hemisphere winter approaching, significant amounts of hot bitumen are being used in asphalt mixes for highway projects like the N3 from Durban to Johannesburg, the N2 South Coast Road from Durban, and the N4 Corridor toll road from Durban to Maputo.
How are infrastructure developments and inflation shaping bitumen demand in Africa? Share your thoughts.
