The Asian bitumen market showed mixed dynamics at the beginning of September. Weak demand across parts of Southeast Asia contrasted with firmer activity in South China. Overall, sentiment remained cautious as oversupply and crude oil fluctuations continued to influence trade in key hubs.
Singapore
Export prices in Singapore came under pressure from high inventories and limited prompt demand in Southeast Asia, though stronger buying interest from South China prevented sharper losses.
- FOB Singapore: Offers were heard at $420–425/t, with some traders lowering prompt September cargoes to around $420/t.
- Most refiners remained sold out, conducting sales on formula-linked terms at mid-single-digit premiums to ABX 1.
- Outlook for October is divided: some market participants expect recovery on the back of refinery maintenance and stronger Chinese demand, while others remain cautious due to persistent weakness in Vietnam and Indonesia.
Malaysia
Demand in Malaysia weakened further due to wet weather and oversupply.
- A major refiner cut ex-works prices to 2,000 ringgit/t ($473.50/t), a sharp drop compared with two weeks earlier.
- Imports from Singapore slowed, with truck deliveries nearly halved from late August levels.
- Market activity is expected to pick up gradually in the second half of September as holidays conclude.
Indonesia
The Indonesian market remained stable, with most buyers sufficiently covered by domestic output and long-term contracts.
- A small 1,500t cargo traded at $425/t FOB Singapore, though not considered index-relevant.
- A state refiner raised September ex-Cilacap truck prices to 9,000,000 rupiah/t ($547/t).
- Buyers are awaiting new roadwork tenders, with expectations of stronger demand from October.
Thailand
Thai refiners continued to operate at reduced run rates, limiting export supply.
- Export prices softened slightly to $415–425/t FOB Thailand, reflecting weaker regional sentiment.
- Domestic consumption remained steady, though concerns emerged over potential budget adjustments amid political transition.
Vietnam
Heavy rainfall and flooding from Typhoon Kajiki disrupted road projects in northern provinces, keeping demand muted.
- Most bids were in the range of $460–470/t CFR for September cargoes.
- Market activity is unlikely to recover before October, given high inventories and extended public holidays.
South Korea
South Korean export prices fluctuated in line with HSFO and crude oil movements.
- Early September tenders settled at $410–420/t FOB South Korea, but weaker feedstock values later pulled indications down to $390–405/t FOB.
- A Yeosu refiner awarded Q4 cargoes at premiums of around $5/t to HSFO forward values.
China
Market conditions varied across regions:
- South China: Prices firmed to $465–480/t CFR, supported by refinery production cuts and project-driven demand.
- East China: Domestic prices slipped slightly to Yn3,330–3,570/t ex-works on sufficient supply and weak buying appetite.
- Imports from South Korea into East China dropped to $425–430/t CFR, as buyers avoided stockpiling.
Taiwan
Taiwanese demand held steady despite refinery maintenance, which raised import requirements.
- Export offers were reported at $410–420/t FOB Taiwan for late-September and October loadings.
- Imports in August and September were estimated at around 12,000t.
Australia & New Zealand
Markets remained subdued during the winter season, though preparations for spring roadwork projects began.
Cargoes from Singapore and South Korea are scheduled for September loadings, signaling renewed demand from late September onwards.
Outlook
- South China is expected to remain the main source of support for regional prices, providing short-term stability.
- Weak demand in Southeast Asia, particularly in Malaysia and Vietnam, is likely to persist through September unless weather conditions improve.
- Singapore may see moderate recovery from October, driven by refinery maintenance and stronger Chinese buying.
- Tender activity in South Korea and Taiwan will continue, though price direction remains closely tied to crude oil and HSFO trends.
- From late September, Australia and New Zealand are expected to show signs of rising demand as seasonal roadwork projects begin.
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