The bitumen market was highly unstable and volatile during last week. Not only bitumen but all the petrochemical markets were uncertain for traders and market participants as commodity markets were highly fluctuating due to the supply obstacles and rising demand.
In the Middle East, Bulk bitumen was in the range of $ 440 – $ 450 and the new steel drum was fluctuating in the range of $ 495 – $ 515. In Europe, bitumen was highly volatile and increased by about $ 15 – $ 20 in a week. In Africa and China prices were volatile for $ – 5 – $ 15.
The Russia and Ukraine war has been intensified last week which caused many consequences in the energy market. Russia is the supplier of at least 8 % of the world’s oil and gas. The US has put hefty sanctions on the Russian energy sector and led gas prices in Europe to the highest prices. Oil experienced sharp rises since the sanctions and reached above $ 120 in only 2 weeks.
The oil and gas prices have put the petrochemicals, including bitumen, in a risky situation as the refineries have faced a shortage of raw materials and rising prices of them. The sharp increase in oil prices is affecting the price of raw materials and eventually oil products.
The dollar is getting stronger by the unstable situation of war. Most currencies have been getting weaker against the dollar. The event is causing a more volatile market in raw materials.
Traders, on the other hand, have not stopped their purchases. Although some are indecisive to close new deals, others willingly have their deals at the best prices that they can find in the market.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.