Unstable Exchange Rates
Bitumen and petrochemicals had another uncertain week along with the crude oil’s sudden plunge. As mentioned in previous reports, crude oil price, currency exchange rates, and fuel price are effective components in determining bitumen and other petroleum products prices. The recent volatilities of all the three mentioned factors have made a difficult situation for all the market participants.
The prices were almost fluctuating in a range of – $15 / + $ 15 in most of the regions. In the Middle, bulk bitumen had a slight decrease and is volatile in the range of $ 355 – $ 365. Accordingly, the new steel drum is fluctuating in the range of $ 435 – $ 440 for the last week of June.
The shipping rates had no significant changes during the last weeks. However, in several regions, the closure of the local ports has caused delays in deliveries.
Although there are thoughts and plans on ditching the fossil fuels for the net zero programs the forecasts show that the petrochemical market value would increase to $1 billion by 2030. The growth of petrochemicals means that there will be an increasing demand for crude and natural gas. A recent petrochemical report indicates a CAGR growth of 6.2 per cent over the next eight years. The rising demand will be more visible in the construction, pharmaceuticals, consumer goods, and electronics industries.
Iran’s unsuccessful negotiations have resulted in more fluctuations in the Dollar / Rial. But traders are still trying to continue their activities despite all the difficulties. Fuel and energy increasing prices are adding to the concerns of market participants.
