Will the Tensions Really Calm Down?
Bitumen markets had lots of uncertainty last week since traders were confused by the sudden drop in oil. Exactly at the time that news was talking about higher oil prices, the bearish sentiment suddenly took over. Several events were responsible for the confusion:
Talks about the possibility of a truce for the Israel-Hamas war: Ceasefire is not approved but hopes were risen.
The US economy improvements: Interest rate cut will happen in May.
Increasing freights: Although hopes are increasing, shipping lines are still risky. Freights are still on an upward trend.
Changes in the dollar exchange rate in the Middle East: Dollar exchange rate decreased and it caused a jump in bitumen prices
Opposite directions of price in different regions: Singapore and Iran almost had stable markets. India and South Korea increased rates. The 9.5 USD jump in Indian prices brought back hope to traders.
Chinese New Year: Several East Asians prefer to postpone their purchase until the end of the holidays.
In the Middle East, the new steel drum bitumen was in the range of $ 360 – $ 365 and the bulk bitumen was in the range of $ 280 – $ 285. The bulk of Singapore is volatile in the range of $ 430 – $ 435 and South Korea is currently $ 390 – $ 395. Bahrain bulk recorded 360 USD at the end of the year.
