Bitumen Market Overview 18 August 2025

Geopolitical Strains Pressure Global Markets

Over the past week global bitumen market, Brent crude reached $64 per barrel. Israel intensified its bombardment of Gaza, causing many casualties. A single-day Chinese economy index changed from a loan to the production sector, turning negative in July for the first time in 20 years. Trump and Putin met in Alaska to discuss ending the war. Global trade is strained, with average tariffs on imports from over 60 countries, including the EU and Japan, at record highs. The International Energy Agency predicts crude oil supply will rise by 2.8 million barrels per day by 2026 despite slow demand growth.

Global Bitumen Market Update

Global bitumen market prices recorded slight declines in Singapore, Iran, and European price points due to weaker demand and lower crude and fuel oil values. Imports into sub-Saharan Africa were steady to weaker, though demand improved in Kenya and South Africa. Singapore export prices dropped on softer regional demand and lower late-August offers, while Iranian export prices edged down as weak demand and trade pressured values, though sellers resisted large cuts amid higher VB costs and fluctuating supply.

Africa Market Overview

West Africa

Unfavorable weather with heavy rains kept project activity and bitumen demand low, limiting cargo flows into Nigeria and other terminals. The rainy season, which began in late June, usually lasts until October or early November before the dry season brings a rebound. Import prices fell in the week to $55 per tonne, trading lower. Mediterranean HSFO values.

East Africa

Regional import prices declined. Iranian bulk cargoes dropped $4.90 fob Bandar Abbas, while drummed prices slipped $1. Bitumen demand in Kenya, Uganda, and the DRC remained strong.

South Africa

Market participants estimated Natref refinery would produce about 9,000t of bitumen in September for domestic end-users and demand was brisk during the current road sealing season. Cargo flows slowed after a recent wave of imports from the Mideast Gulf and Mediterranean.

Middle East Market Overview

Bahrain

Seaborn FOB prices at Sitra remained steady at $400/t.

Iran

Bitumen export prices fell slightly due to weak demand and lower crude values. Sellers were reluctant to cut prices significantly, as vacuum bottom (VB) feedstock costs rose and supply fluctuated amid variable refinery runs and exchange rate volatility.

Iraq

Bitumen trading rebounded as Kurdish suppliers resumed operations following the restart of crude oil exports from Kirkuk to Turkey under an agreement with the central government.