Weak Demand and Falling Prices in Singapore
Singapore’s bitumen market faced price losses as Southeast Asian demand dried up. Although production output remained stable, selling indications for April cargoes were at $430-440 per ton FOB Singapore, but market participants noted that offers above $440 per ton were no longer workable by the end of the week due to weaker demand.
Ramadan Causes Slowdown in Malaysia
In Malaysia, demand was low during the Ramadan fasting period, as construction activities slowed due to extended breaks for contractors. Wet weather in cities like Kuala Lumpur, Johor Bahru, and Penang also slowed project progress. However, the market is expected to see a demand increase from April as construction resumes and delayed projects come to completion.
Indonesia and Budget Cuts
Indonesia’s import demand remained slow due to reduced infrastructure spending and the fasting period of Ramadan. Stocks have remained high, and buying indications for April and May loading cargoes were $405-410 per ton FOB Singapore. As a result, no deals were set, and market activity remained low.
Limited Discussions in Thailand Market
Despite offers for April-loading cargoes in Thailand at $435-440 per ton FOB Thailand, no market discussions emerged. Bids from Southeast Asia were between $400-425 per ton FOB Thailand, but suppliers did not consider these prices workable. The market remained closed, with no significant progress being made in trade discussions.
Weather Delays Emerged in Vietnam
The northern region of Vietnam experienced cold weather that halted construction activity. However, as the weather warms and dries, market participants expect consumption to rise by the end of March. Southern and central Vietnam have already seen more awarded projects and are expected to boost demand in the coming weeks significantly.
Steady Prices and Low Demand in Bahrain
Bahrain’s bitumen prices remained unchanged at $420 per ton FOB Sitra. However, demand for Bahraini cargoes remained broken, and no vessels were scheduled to load from Sitra during the week. The market continued to face low activity, with little change in the demand for Bahrain’s bitumen.
Nowruz Holiday and Market Disruption in Iran
Iranian bitumen prices were around $350 per ton FOB Iran, mainly due to limited export supply. Demand from India remained steady, but trading activity slowed due to the Iranian New Year holidays, which began on 19 March. Nowruz Holiday led to delayed vessel loadings. Exports to Pakistan were also halted due to restrictions on truck transportation during the holidays.
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