Bitumen Market Overview 28 July 2025

Global Bitumen Market Update

Tensions in the Middle East rose, especially in Gaza, amid reports of malnutrition and a harsh siege. The Russia-Ukraine war saw little change, though new oil sanctions were added. In U.S. policy, Dem-aid 1.0 was proposed a 25% tariff on Japanese goods, proposed a trade deal with India, and warned of tariffs on 150 smaller nations. These developments led to market disappointment and a drop in crude oil prices to $68 USD per barrel.

Global Bitumen Market Update

European export prices rose, supported by steady demand. In Singapore, prices continued to climb due to tight regional supply. In contrast, Iran’s bulk export prices declined, pressured by weak demand from South Asia, despite limited availability of vacuum bottom (VB) feedstock. Construction activity slowed in Northern and Central Europe due to summer holidays, and is expected to extend into Mediterranean countries. In Africa, prices remained mostly stable, although import prices in West Africa saw a significant increase.

Africa Market Overview

West Africa:

Heavy rains across Nigeria, especially in southern coastal areas, and in nearby countries like Cameroon and Ghana, reduced construction and bitumen demand. Despite this, import prices rose.

East Africa:

Construction remained active in Kenya and Uganda. Uganda’s big infrastructure projects may grow ahead of its early 2026 elections. Import prices varied, reflecting Iran’s price changes. Iranian bulk prices fell by $5-10/t (FOB Bandar Abbas), but drum prices rose by $5/t. Activity slowed slightly in Kenya and Uganda, but heavy rain in Ethiopia delayed projects.

South Africa:

Dry, mild winter weather supported roadworks. Activity was steady. South Africa’s stocks were full after receiving cargoes from the Gulf and Middle East. Demand stayed low due to the off-season.

Middle East Market Overview

Bahrain:

Prices stayed at $400/t FOB Sitra. Inquiries were strong, but deals were few.

Iran:

Iraq prices dropped due to low South Asian demand, even though VB supply stayed tight. Many producers shut down midweek due to heat, water, and power issues. Jumbo bag production stalled due to heat, causing leaks and reducing export volumes.

Iraq:

No new deals were reported, but demand stayed firm and prices in the south remained stable.