China Better Condition
When OPEC announced the voluntary cut two weeks ago, the bitumen market become a bit hopeful for growth due to tight supply. Traders were again encouraged for better conditions when China reported improved demand for oil.
In fact, the bitumen price has been increasing in most regions ever since. India raised the prices by 16.5 USD on 15 April. Bahrain also increased the price by 15 USD and its bitumen price reached 370 USD. Iran and the Middle East rates also increased by the severe competition that happened in the region.
In the Middle East, the new steel drum bitumen is in the range of $ 435 – $ 445 and the bulk bitumen is in the range of $ 360 – $ 365. The bulk of Singapore is volatile in the range of $ 470 – $ 480 and South Korea is currently $ 410 – $ 420.
The sentiment is not merely positive at the moment, in fact, it can be seen as a mixed situation. But surely traders are trying to close their deals sooner to avoid higher prices. Demand is not only increasing in China but also in most Asian and African countries.
This article was prepared by Mahnaz Golmohammadian, the account manager and market analyst of Infinity Galaxy.