Petrochemical Price Surge
The global financial and commodities markets have experienced a turbulent week full of unpredictable volatility. Some global economists believe that another wave of inflation stagnation is likely to occur around the world. Given this week’s economic situation, Europe’s economic growth and production rates are likely to be adversely affected by the sanctions imposed on Russia.
On the other hand, the potential for higher prices for energy sources could lead to continued inflation in the world. Taking these two factors into account strengthens the assumption of “inflationary stagnation.” In such a situation, a significant portion of the capital will flow into a safe market, and the current safe market could become “gold” and its growth is expected. Crude oil records continued last week, surpassing $116 as Russia invaded the city of Kherson in Ukraine.
On March 2, 2022, fuel prices exceeded the US $557 and Singapore announced a bulk price of US $490 per ton. In Iran, the range of vacuum cleaner floor competition has fluctuated between 16.5 and 34% over the past week. In addition, the conclusions of the nuclear negotiations will have a significant impact on the US $ balance against Iranian rials, and the FOB price of package bitumen will exceed the US $500.
Bitumen Prices Sharp Rise and the Risky Export Procedures
While such a sharp rise in bitumen prices may seem attractive at first glance, there is a risk that exports will stop or decline due to the high final cost of road construction projects. As mentioned in our article before, Indian refiners reached $60 following a significant rise on February 15 and recorded an additional $29.5 rise on March 1. We had no choice but to adjust the price to suit the global market. Therefore, in the Indian market, bitumen prices rose the most sharply within a month. However, given the current global situation and the international crisis, buying and selling immediately may be the best decision.
This article was prepared by Shirin Yosefi, the Content specialist and market analyst of Infinity Galaxy.