Bitumen prices in West Africa rose for the second week, but supply concerns grew after the Bitu River hijacking. Nigeria’s roadwork remained steady, while Ghana awaited new infrastructure plans. In East Africa, prices dropped due to lower Iranian exports and slowed trade. Kenya saw growth, but Uganda and DRC faced funding and security issues. South Africa’s demand dipped short-term, though long-term prospects remained strong.
Price Increases and Security Risks in West Africa
Bitumen cargo prices rose for the second week, following gains in crude and HSFO. However, security concerns increased after hijacking the Bitu River tanker in the Gulf of Guinea. While the vessel resumed operations by late March, the incident raised fears of supply disruptions, potentially preventing shipments from key suppliers in the Mediterranean.
Steady Demand in Nigeria/Ghana
Road construction continued in Nigeria, benefiting from dry season conditions. However, concerns emerged over potential supply issues due to the Bitu River hijacking.
In Ghana, market activity remained moderate as stakeholders awaited the new government’s first budget and infrastructure plans.
Price Drop & Trade Slowdown in East Africa
Drummed bitumen prices are muted due to lower Iranian export values. Supply flows slowed significantly during Iran’s Nowruz holiday, and traders faced extended transaction scrutiny by US banks, delaying market activity until mid-April.
Kenya/Uganda/DRC and Cross-Border Challenges
Kenya saw steady growth in road projects as government payments increased. However, Uganda’s bitumen demand remained weak due to funding shortages. Suppliers struggled to transport bitumen into eastern DRC due to ongoing security risks linked to the M23 rebel offensive.
Strong Future Outlook for South Africa
Truck prices held steady, but demand stopped due to long weekends leading up to Easter. Despite short-term slowdowns, long-term opportunities remained optimistic.
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Bitumen Prices In Africa (Updated on Apr 1, 2025)
