Bitumen market in 2022
Bitumen experienced another week of gains along with crude growth. Moreover, to the price increase, the range of the prices was wider during the third week of January. In the Middle East, bulk bitumen prices was fluctuating in the range of $ 315 – $ 325. The fluctuations were more noticeable for the new steel drums. The new steel drum was volatile in the range of $ 395 – $ 405. Prices in Europe, China, and Africa were volatile in the range of ± $5.
The market is gradually expanding due to better conditions of covid, commodities growth, better demand, and geopolitical risks. The tensions in Ukraine and the United Arab Kingdom (UAE) increased during last week. Russia is moving its troops toward Ukraine after the suspension of peace talks. The US has ordered the embassy families to leave Ukraine. Houthi rebels and the UAE are still struggling in the region. With the UAE tensions, the market gets in fear of a tight supply; therefore, prices are evoked.
Crude is rising higher for the 6th consecutive week. It has slowed down since last week, Friday after some intentions to increase the supply. But the pauses would be only short term. With the lower death of covid infections and less severe symptoms, countries hope to have a better economy in 2022.
The US imported 16.16 million barrels of bitumen from January to October 2021. Imports had been increased compared to 2020 when the country imported 13.91 million barrels of bitumen. Note that the increase happened in the situation that the economy was under the heavy pressure of the pandemic. Considering the better condition of covid in countries, we might expect more growth in the bitumen industry in 2022.
