Rex Fuels’ Bitumen Conference
It’s important to mention that we created the current weekly report following the previous conference on Rex Fuels’ bitumen and
bitumen modification at Taj Palace, New Delhi. As a conference exhibitor,we were able to attend the event to meet all its valued customers and talk about the latest state of the bitumen market.
To be more specific, the market seems to need to make final pricing within the next week.
The reasons for approaching such a final decision are as follows:
Bandar Abbas has a low supply of vacuum soil and Indian buyers havenot received old orders, but the Iranian refinery competed for 48% with the available 20,000 MT vacuum soil for a significant increase in bitumen prices.
By the beginning of the week, Biden threatened to release strategic deposits of crude oil, and as a result of some European and Japanese contingencies, oil prices fell to $78, but OPEC + countries. The threat has returned to the $80 level with increased supply, at the $82 level at the time of writing this report, and appears to be stable in this area for the near future.
In December, we can propose two different oil price scenarios.
a) Price declines as a result of oversupply in the last few months.
b) Exchange rates up to $90.
Shipping and Freight Obstacles
It should be noted that there is no clear guess as to which is more likely. Moreover, they will regulate the shipping status and the delay in
delivery of the cargo accordingly .
As the cold season in northern and northwestern India is approaching, road construction projects are shut down, resulting in lower demand
for drums and major importers believe that receiving old orders is a priority.
As a matter of fact, markets may vary traders place new orders if developments and rates are attractive.
Based on news from India,they will resolve the Mundra Port issue and the guidelines of
the Adani Guidelines in the next two weeks. There are contrary factors in view approximately additional expenses
of Indian refineries:
- Increase of bitumen fee up to twenty US bucks
- Decrease of fees as much as precisely 20 US bucks
In the present-day state of affairs, all of them in all likelihood situations are parallel with every different and the marketplace is ready for
its last selection whether to comply with its upward or downward fashion.
The stability of the marketplace can take place due to fee changes and the balance of fees on the present-day ranges and any revision
in transportation fees will cause a set variety of bitumen expenses.
As the marketplace state of affairs is not displaying any clean fashion and any of the abovementioned situations are portable, we advise the
consumers to make certain of all the factors of marine transportations for any new order and comply with the “Spot Purchase” strategy.
