The market kept moving forward through the second week of September. As covid fears drop, demand gets higher along with more hopes for the market outlook. The FOB prices were almost steady as the former week with a fluctuation in the range of $ +5 / -5 in various regions. The CFR prices had a hike because of the rising shipping rates. Congestions and delayed deliveries are still a burden on traders. However, market participants did not stop the trades for higher rates of shipping, and demand was coming from different markets.
The construction project auctions and schedules show that the constructors are still eager for running their plans at the appointed time.
The fuel demand and price are also soaring in the US, Europe, and Asia. In August, the fuel demand rose 10.9 % in India compared to the same time last year. According to the reports by the Petroleum Planning and Analysis Cell (PPAC), fuel consumption reached 16 million tonnes. Sales of gasoline, petrol, and bitumen boosted in August. Bitumen sales were up about 3.1 % from a year earlier.
Crude oil price, an incentive for bitumen price, is rising for the third week. The trend seems to be increasing in the following month ahead due to the low interest of traders for prices lower than $ 69 in the recent weeks. With the détente of China and the US, the market is even more hopeful for increasing prices. Platts also illustrated that it sees the possibility of Iran and the US negotiations on nuclear energy for the next year. In case of agreement, Iran will pump the supply in crude and some petrochemicals such as bitumen.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.