Petrochemicals were almost stable during last week because of the steady range of crude oil. In the Middle East, prices were volatile for ± $ 5. The bulk bitumen recorded $310 – $320 per ton and the new steel drum was also in the range of $380 – $390 same as the previous week.
Traders, including the Indian market, are doing their best to have their purchases by the end of 2021. Spot trading is popular in the market but several participants are trying to pre-purchase their required cargo before the new year. The vague conditions of first materials and crude have caused this controversy. The entire market tries to avoid possible losses according to their strategy.
The oil demand outlook is not promising. In contrary to the financial institutions’ forecast for 2021, crude did not succeed at prices over $ 100. The recent resurgence of covid unsettled the demand outlook of fuel and oil.
Omicron, the new variant of covid, is replacing the Delta variant rapidly. The spread pace of Omicron is severely faster than other variants; therefore, countries are now struggling with the virus resurgence. European countries, including the Netherlands, Germany, and the UK, have imposed all of the travelling restrictions to control the New Year transportations relatively.
Recycled oil and caustic soda market are nearly the same as bitumen. The refineries are trying to empty their current reserves by the end of 2021. These markets are moving forward but they tend to decrease yet.
As a supplier, we still recommend that traders have spot purchases to lower their organization’s risks at the uncertain commodity markets. Avoid suspending your purchase cycle in hope of lower prices for 2022.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.