Volatile Commodities
Market participants experienced another confusing week while getting closer to the end of 2021. In the Middle East, bitumen prices decreased around $10 – $20. Bulk bitumen was in range of $310 – $320 per ton. The new steel drum was also in the range of $380 – $390 last week.
Prices were also volatile by about ± $ 10 in Europe, Africa, and China. Although we are getting to the end of 2021, demand has not decreased as in former years. Demand and supply are more than the same period of time last year.
The world has not surpassed the outbreak risks even after the scientists’ declaration about lower dangers of Omicron compared to the Delta variant. Pfizer also stated that its vaccines showed efficacy against Omicron. The virus, however, is spreading quickly in various regions, including the UK. The governments hope that the epidemic is over soon but the virus constant mutations are still trouble.
Dollar devaluations also added more trouble to the market of petrochemical since it caused many instant price changes during the week. Commodity traders expected stronger tapering policies and financial reports but they did not come as strong as they had foreseen. Therefore, the dollar underwent a decrease in the market. Hence, commodities such as crude could rise slightly.
Bitumen demand is still floating in the market. Traders try to have spot purchases to keep up with the new opportunities of the market. One of the new opportunities has been the South Africa market. The deficiency of raw material due to the closure of refineries has attracted many market participants. Moreover, the outlook of the construction of the region is really promising for investors.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.
