Bad Climate in Several Regions
Falling prices of bitumen made more traders confused about their purchases. But it could not stop the market even by more decline. There are orders coming from many countries including East Asian parts and Africa. Although the demand is not off, the pattern has changed due to climate change. For instance, India is now facing heavy rains and winds and construction projects have almost on a halt. Traders are also restricting their purchases for a while.
In the Middle East, the new steel drum bitumen is in the range of $ 355 – 360 $ and the bulk bitumen is in the range of $ 275 – $ 280. The bulk of Singapore is volatile in the range of $ 465 – $ 470 and South Korea is currently $ 400 – $ 405.
Fuel had a similar situation such as bitumen. The price is falling after crude stagnation. Commodities have a sensitive situation including copper, crude, and gold. Oil is trapped sideways and it doesn’t have enough strength yet to break through the resistance.
Supply and demand are stable and expectations vary from time to time. Some market participants are looking for a tight supply but facts are not totally agreeing with them. Demand also is very fragile as sometimes it is expected to rise and sometimes the reports show the opposite.
This article was prepared by Mahnaz Golmohammadian, the account manager and market analyst of Infinity Galaxy.