Bitumen Market Overview 25 August 2025

Geopolitical Strains Pressure Global Markets

Last week Brent crude hit $66/bbl. Global uncertainty persists amid hopes for a ceasefire and stalled Ukraine talks. Oversupply, slow growth in China, and India’s monsoon weakened bitumen demand. In Iran, recession and logistical issues complicated exports. In Gaza, talks stalled in a 60-day ceasefire. Trump held talks without agreement, while EU leaders and Zelensky discussed a peace plan with Trump.

Global Bitumen Market Update

Cargo prices fell in many Asia-Pacific, Mideast Gulf, Northwest European, and Mediterranean markets. Import prices in Africa also dropped during the last week. Singapore export prices continued their earlier decline. Heavy rainfall in north China reduced demand. Bitumen consumption across India stayed weak due to the monsoon season. Cargo prices in northwest Europe and the Mediterranean also fell, in line with regional HSFO declines.

Middle East Bitumen Market Overview

Bahrain:

Listed seaborne prices remained unchanged at $400/t fob Sitra.

Iran:

Bulk prices fell due to weak demand, while drummed prices stayed mostly stable fob Bandar Abbas despite bulk and feed-stock fluctuations. The bulk-drummed spread widened to $400/t, above the usual $40-65/t premium. Oman: Remained firm. Cargo bag exports were limited but may rise in October after summer heat.

Iraq:

Trade for Iraqi bitumen was robust, with Eurasian suppliers playing an active role. Supplies from southern Iraq remained following the conclusion of the Arbaeen pilgrimage.

Africa Bitumen Market Overview

West Africa:

Rainfall remained high across the region, including Nigeria, restricting construction and bitumen truck sales. Cargo prices fell by 22 August, following drops in Mediterranean HSFO. Security in Benin has improved recently, partly due to increased US diplomatic and military presence.

East Africa:

Regional suppliers pointed to strong activity and high demand for bitumen in Kenya, Uganda, and the Democratic Republic of Congo, while delivered prices to East African ports edged lower. Iranian drummed bitumen export prices fell by $0-50 FOB BND.

South Africa:

Mostly imports bitumen from the eastern Mediterranean, the Gulf, and Pakistan. With Saudi Arabian exports likely unavailable for the rest of 2025, Singapore has become an alternative. Activity and demand fell due to the Cold and wet conditions period in Western Cape, while high temperatures affected inland areas, including around Johannesburg.

East Asia Bitumen Market Overview

Singapore export prices continued to fall, as weak regional demand offset the potential impact of lower production next month. Some market participants had hoped demand from China and Indonesia would recover in September, but there was no significant increase.

Offers and selling indications for second-half September cargoes were around $430-435/t FOB Singapore. Most importers in Vietnam and Indonesia had enough stock and were not eager to make deals. Malaysia: Bitumen demand stayed stable, slightly lower in some regions due to rain. Demand is expected to rise with North-South Expressway expansion.

In Thailand, demands remained stable; while export supply was limited. In China, domestic prices came under pressure, especially in the Shandong region, as some suppliers reduced offers to encourage buyers to purchase volumes.

Heavy rainfall in northern China dampened demand. Due to continuous rains, most buyers focused on drawing down existing inventories, leading to limited purchasing activity.