Bitumen had several increases during the third week of April. Prices are now up by about + $ 10 in the Middle East. The new steel drum is currently $ 485 – $ 495 and the bulk bitumen is in the range of $ 425 – $ 435 per ton. In Europe, prices are volatile due to the supply shortage. CFR Antwerpen port is fluctuating in the range of $ 547 – $ 557. In Africa, CFR prices increased by about $ 15. CFR Douala is currently fluctuating in the range of $ 925 – $ 935.
Construction projects are still struggling with the Covid economic impacts. In countries such as African territories, construction infrastructures have the capacity to absorb huge amounts of capital. In fact, big economies have been always interested in the lucrative construction industry of Africa. China invested 4,230 million US dollars in the African construction industry in 2020.
The African construction market has plans to reach a CAGR of more than 7.5% from 2022 to 2027. Considering the great potential of various regions in Africa, construction sections have a promising long-term outlook.
Developing construction infrastructures is a vital plan in all the growing population countries. At the moment, most regions are recovering from the impacts of covid on their economies but soon they will focus on enhancing roads and buildings. The bitumen industry can have a huge growth when the projects start.
Considering the long-term uptrend of oil and the expected demand rise, bitumen and construction materials can experience sharp increases by 2025. Traders and market participants should consider the growth in their long term visions to avoid probable losses.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.