Panics and Overreactions
The market experienced more decrease during last week since crude had a sharp plunge on Black Friday. Fears of the new variant of covid brought panics to every market causing traders to overreact. In the Middle East, bitumen prices fell by $10 – $20. Bulk bitumen was traded for $360 – $370 per ton, and the new steel drum was $450 – $460 per ton.
Prices were nearly decreased by $20 in various regions, including China, Europe, and Arica. CFR Hong Kong was $470 ± 5 per ton. Douala port’s CFR, in Cameroon, was $835 ± 5 per ton in the market. In India, traders were still struggling with the confusing conditions of ports such as Mundra and Nhava Sheva. Freights and cargo release period is unclear for traders and suppliers with the new restrictions.
The recent variant of covid, Omicron, has frightened governments and the market as it has spread quickly. Financial markets are afraid of another lockdown since the economies and industries cannot stand another hectic situation. Demand outlook has become dim by the virus resurging. Scientists are not assured about the efficacy of the current vaccines. If they declare that vaccines cannot affect the new variant, prices continue to fall. Otherwise, we will see a rapid recovery of prices.
Despite last week’s hectic conditions, construction projects are still running as scheduled. Heavy rains have ruined much of the poor pavements in countries, including India. The polymer-modified bitumen market size is projected to grow by USD 2.73 billion from 2021 to 2026. Although 2021 could not achieve the expected levels because of the sudden resurgence of new variants, Long term outlook is still on an uptrend.
