Unlike 2-3 weeks ago, the asphalt market has seen quiet days this week. In fact, the dollar exchange rate continues to fluctuate between 22,000 and
23,000 Toman. Such fluctuations may continue until a conclusion is reached
in the negotiations between Iran and the United States, and it appears
that both sides will achieve the result within the next week. Additionally, the Iranian presidential elections on June 18 also affected the atmosphere
of these negotiations, and the current government is working hard to
make positive progress. However, refineries do not compete severely at
the bottom of the void, which may be a low demand from Indian buyers, who
are the major consumers of Iranian asphalt. In some states in India, the
natural phenomenon of cyclones, partial lockdowns, and the vast gap
between current Iran prices and actionable Indian prices may be some
reasons for the decline in demand from importers. Now they prefer
to buy locally at a more suitable price.
Recycled Oil tradespeople moving tentatively
In the last week, as described in the latest Infinity Galaxy Weekly Report,
the price of recycled base oil has increased. To be more specific, the report
shows that certain parts of India have lifted restrictions on the coronavirus. Therefore, the demand is growing as expected. Fearing the Covid-19
pandemic and the hurricane in India, some importers offered cheaper
local prices at various ports.
In recent weeks, traders still face a shortage of raw materials and shortage
of supply. Raw material prices in Iran have also risen again, which has
led to price increases and other factors.
Although some Indian importers are looking for market prices between
US$630 and US$650, they must be cautious about the quality of the goods. The recent increase in low-quality recycled oil has become a major problem
for Iranian exporters and suppliers. Besides, Inferior oil is transported
across the Iranian border from other countries/regions and exported
to the destination port.
OPEC still expects to have more demand
On May 11, OPEC clarified that it will maintain a stable supply as planned. The alliance decided to increase production by approximately 2 million barrels
per day. After was vaccinated, the demand in American and European
countries increased. Several cities have managed to contain the disease
and stopped their cities from wearing masks. After returning to normal,
its demand for fuel and oil increased. U.S. oil inventories and shale oil
have also reduced supplies.
To sum up
In the second week of May, the U.S. dollar appears to be lucky. Generally,
the financial report is encouraging and the market sentiment is optimistic. Soon after, the US retail sales report turned a page. The report shows that the
inflation rate has not risen, and the economy has not recovered well. Therefore, the US dollar unexpectedly fell. In the following week, the Federal Open
Market Committee will publish the minutes of the meeting
and may promote market development accordingly.
