Bitumen Market Overview 13 October 2025
Global Geopolitical Update
Israel and Hamas have agreed to a ceasefire under Trump’s 20-point plan involving a hostage exchange and partial troop withdrawal from Gaza; the U.S. government shutdown, now in its second week, has heightened domestic tensions and delayed crucial economic reports; and crude oil prices have fluctuated as Middle East risks eased, while OPEC+ maintained cautious supply control.
Global Bitumen Market Update
Bitumen market outlook prices declined in Singapore, South Korea, and Iran due to ample supply and weak demand, while European and Mediterranean markets saw mixed trends with some price rises but generally slow demand. West African cargoes strengthened, whereas Middle East Gulf exports to East and Southern Africa continued to face downward pressure.
East Asia Market Overview
Singapore export prices eased further amid weak Southeast Asian demand and ample regional supply. Road construction remained slow due to rainfall. Export price offers for late-Oct and Nov cargoes were around $405/t FOB Singapore, with most suppliers unwilling to go below $400/t. Across Southeast Asia, bitumen demand remained generally weak due to persistent rainfall and limited construction activity. In Malaysia, frequent storms kept consumption low, though demand is expected to pick up with upcoming road projects. Similarly, Indonesia’s consumption was steady but subdued, constrained by funding shortages and the onset of the rainy season. In Thailand, heavy floods curtailed demand. Meanwhile, in Vietnam, buyers had largely covered their needs and favored competitively priced Middle East Gulf cargoes over regional offers. In China, poor weather and a holiday shortened week reduced spot activity, while weak domestic demand pushed refiners to seek exports to northern Vietnam, which faced buyer resistance.
Middle East Market Overview
- Bahrain: Seaborne activity stayed quiet as the local refinery prioritized domestic supply and regional tank truck exports, with prices steady at $400/t FOB Sitra.
- Iran: Iranian export prices declined as weak demand outweighed the support from higher VB feedstock costs and limited supply. Exchange rate volatility between the Rial and the USD further complicated negotiations. While recent UN sanctions have not yet had an immediate impact, market participants expect logistics costs to rise in the short term. Some suppliers focused on fulfilling existing commitments rather than offering new cargoes.
- Iraq: Lack of firm demand from India has affected Iraq’s drummed bitumen exports. Sellers, facing feedstock shortages and higher production costs, were reluctant to reduce prices further.
Africa Market Overview
- West Africa: Cargo import prices rose sharply, but demand for new shipments remained limited due to persistent rainfall across parts of the region, restricting spot activity in Nigeria and nearby destinations. Traders reported that price rises in some West African markets, particularly Nigeria, remain too low to encourage fresh spot cargoes. Ongoing wet weather near the end of the rainy season continues to impact Nigeria, Ghana, and Cameroon.
- East Africa: Regional bitumen prices were stable to slightly weaker as Iranian bulk values declined again though drummed prices held firm amid tighter supply. Demand stayed steady in Kenya. Ongoing sanctions redirected most Iranian drummed exports through UAE hubs, while renewed conflict in northern Nigeria continued to disrupt regional transport routes.
- South Africa: Bitumen demand remains strong across Southern Africa, with road construction activity and consumption in South Africa rising since Sep. Steady truck flows continued from South African supply hubs to regional export markets. Botswana, Zambia, and Mozambique maintain significant truck-based imports, while drummed bitumen is also shipped from South Africa to Zimbabwe.
