Bitumen prices in the Asia-Pacific and Middle East weakened this week. Many countries had too much supply, but demand stayed low. Heavy rain, flooding, and typhoons in Southeast Asia slowed road construction, so buyers did not want to take more cargoes. In Singapore, prices continued to fall, even though suppliers tried to offer cheaper deals. Middle East prices became a little stronger, but the difference was not enough to export cargoes to Asia. Producers in the region did not cut output because bitumen margins were still better than fuel oil.
Singapore, Prices drop as buyers wait
In Singapore, seaborne prices went down again. Chevron Singapore offered a 3,000-ton mid-December cargo at 380 USD per ton FOB, and then lowered it to 375 USD, but no buyer accepted the offer. Even with low prices, producers did not reduce production because bitumen stayed at a premium to HSFO. The spread was about 37 USD per ton on 27 November. Many buyers in the region expect prices to fall more, so they do not want to buy December cargoes at 375–380 USD per ton.
Vietnam, Very low demand pushes prices down
Demand in Vietnam was very weak. In the south, buyers only wanted prices near 370 USD per ton FOB Singapore or lower. In the north, buying interest was even weaker, and price ideas were below this level. One December cargo of about 6,000–7,000 tons was sold into Vietnam at around 380 USD per ton on a netback basis. Another December cargo of about 4,000–5,000 tons was completed at 365–370 USD per ton on a netback basis. These deals showed that Vietnamese buyers are only willing to pay lower levels because road construction is slow and stocks are already high.
India, Stable prices with steady demand
Domestic bitumen prices in Mumbai stayed between 498 and 526 USD per ton. Drum prices were between 606 and 652 USD per ton. Prices did not change much because demand was steady, but the market was also quiet. Producers in India kept their levels mostly stable.
Indonesia, Balanced market keeps prices firm
Indonesia kept domestic bitumen prices stable at 513 USD per ton. The market did not move this week. Even though other Asian markets were softer, Indonesia did not see strong pressure because domestic supply and demand were balanced.
Japan, Stable market, no big changes
In Japan, bitumen prices stayed between 518 and 537 USD per ton. There were no big changes this week. The Japanese market remained stable, and demand was normal for this time of year.
China, Soft demand lowers East China prices
East China saw lower prices, which were between 405 and 422 USD per ton. Demand was soft because some construction activities slowed down. South China had prices between 413 and 434 USD per ton. Prices in the south were more stable, but buying was still limited, and the market moved slowly.
South Korea, FOB prices weaken on low buying
South Korea showed weaker waterborne FOB prices. Levels moved to 340–350 USD per ton. Buyers were not very active, and there were fewer new deals. Weaker HSFO prices also influenced the South Korean market.
Taiwan, Soft market with limited demand
Taiwan recorded waterborne FOB prices between 365 and 375 USD per ton. The market softened with lower demand and some pressure from regional price declines.
Iran, Small price gains on steady supply
Iranian bitumen prices moved slightly higher. FOB prices were between 304 and 309 USD per ton, and VG40 was between 305 and 310 USD per ton. Drum prices from Iran were between 355 and 365 USD per ton. Supply from Iran was steady, and some buyers in Asia still showed interest, but activity was slow.
Bahrain, Stable FOB price
Bahrain’s FOB bitumen price stayed stable at 400 USD per ton. There were no major changes because both supply and demand were at normal levels.
Outlook
The Asia-Pacific and Middle East bitumen market will remain weak in the coming weeks. Heavy rain and storms continue in Southeast Asia, which will keep demand low. Many buyers believe prices will fall further, so they prefer to wait before making new purchases. Stock levels are high in several countries, and cargo demand is soft. HSFO prices are also weak, which brings more pressure to bitumen prices. Middle East markets may stay firm, but countries like Singapore, Vietnam, and China will continue to face slow activity until weather conditions improve and construction returns
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