Bitumen prices in Singapore held steady at $435 to $440 FOB despite declines in crude and HSFO prices, though bids from Southeast Asia showed some pressure. Malaysia maintained stable supply amid Ramadan and rainy weather delays, while Indonesia faced sluggish demand due to unconfirmed government projects and recent budget cuts. In Thailand, domestic demand was stable, but export volumes remained limited before the Songkran holiday. Vietnam’s construction activities were slowed by cold weather, with expectations of recovery later in March. China’s domestic prices dropped amid weak demand and economic concerns, and in India, festival-related slowdowns and limited project funds kept demand subdued, though an improvement is expected from April.
Singapore Prices Hold Despite Oil Drop
Last week, bitumen prices and April loading offers were in the $435 to $440 range FOB Singapore. Market participants declare that the sharp decrease in HSFO and crude prices has not directly impacted regional prices, but in some sectors, it has weighed on bids from Southeast Asian customers.
Steady Supply in Malaysia
Malaysia experienced a calm demand last week. Some participants expect a consumption rise in March. This rise is predictable since some projects were delayed due to the fasting month of Ramadan and rainy weather throughout Malaysia. The shortage in trucked shipments from Singapore did not threaten Malaysia, and sufficient bitumen supplies were provided. The reason for sufficient supplies was consistent Malacca’s (the main Refinery of Malaysia) selling and restocking. Overall, during Ramadan, demand is expected to be lower. Many highway projects will be completed this year, so exporters are optimistic about 2025’s consumption.
Unclear Budgets through Indonesia
Indonesia is also experiencing slow demand at the beginning of Ramadan. The government has not confirmed roadwork projects in Indonesia yet. This delay is probably due to the budget cuts in February.
Domestic Focus Before Songkran
Last week, Thailand’s lack of export supplies was vivid, while demand for domestic supplies was stable. Only two domestic refineries continued selling at lower rates, while others were still producing fuel oil over bitumen. Selling indicators for April cargoes were around $430 to 440 per ton FOB Thailand. Contractors try to finish road projects before the Songkran holiday (April 13 to 15); until then, domestic consumption is expected to be weak.
Vietnam Awaits Warmer Days
Cold weather in northern Vietnam prevented construction work from proceeding. However, market participants expect a pickup towards the end of March, especially in central and south Vietnam. Several key highway projects, such as from Bai Vot to Ham Ngh and Ham Nghi to Vung Ang, are supposed to be constructed this year.
China Faces Market Headwinds
Domestic prices in China were reduced, weighed by continued losses in stock values and lackluster demand. The recent US tariff announcements are not expected to directly impact China’s bitumen market due to the lack of significant bitumen trading activity between the two countries. However, some market participants remain concerned that mounting international trade tensions, including the weakening of the Chinese yuan against the US dollar, could still contribute to broader economic discomfort.
Festivals Slow Road Work in India
Demand stayed stable from the previous week. Holi festivals were upcoming, and contractors were trying to wrap up projects. The limited availability of project funds weighed on road paving activities, and demand was lower than last year. Despite tight supply, importers in Maharashtra and Gujarat chose to wait for cheaper offers. Participants say demand is expected to increase from April because of summer weather, but it will depend on the state governments’ timely distribution of project funds.
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Bitumen Price In East Asia (Updated on March 11, 2025)
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