Is It the Beginning of the Rising Trend?
Bitumen had another rising week in most regions. The changes are slight but it heads upward. India increased rates by 3 USD on 1 March. Singapore and Europe experienced some improvements in bitumen markets.
Crude Oil: Oil ended February with the rangebound movement and it didn’t get the chance to break the channel. Although the sentiment is bullish, people are not assured of the economic condition. If reports happen to be positive in March, crude can also see a sudden jump considering the current tightness of supply.
Shipping Freights: The most important driver of bitumen prices has been shipping freights since the Israel-Houthis war. Res Sea disputes are making things harder for shipping lines. Freights are getting Risk War GRI and some ports are facing container shortages because of the congestion that is delaying vessels in several main ports. There are some rumours about opening the Red Sea and if it happens it will lead to higher demand for bitumen.
Demand: Spring is coming and it means a rush of demand for different petroleum markets.
If things go as mentioned above, bitumen prices can drive high soon because of increasing crude oil, freights, and seasonal demand.
In the Middle East, the new steel drum bitumen was in the range of $ 360 – $ 365 and the bulk bitumen was in the range of $ 280 – $ 285. The bulk of Singapore is volatile in the range of $ 420 – $ 430 and South Korea is currently $ 410 – $ 415. Bahrain bulk recorded 360 USD at the end of the year. You can contact me for more information or bitumen inquiry, Click here.
This article was prepared by Mahnaz Golmohammadian, the account manager and market analyst of Infinity Galaxy.
