Bitumen Market Overview 8 September 2025

Global Geopolitical Update

Last week’s bitumen market update was influenced by global politics. The UK, France, and Germany started the Snapback process, which will bring back old sanctions on Iran. In Gaza, Israeli attacks damaged much of the northern infrastructure, and Hamas reported heavy losses. The SCO summit took place in Tianjin, where Asian leaders discussed security, trade, and cooperation. Brent crude prices stayed between $66 and $68, supported by the Iran sanctions and lower U.S. oil inventories.

Global Bitumen Market Update

Bitumen export prices in Asia-Pacific dropped because of weak demand. In Europe, prices also fell due to oversupply and slow demand. Iranian bulk bitumen prices to East Africa and South Asia declined as well. In Southeast Asia, high inventories and limited buying interest pushed Singapore export prices lower, but stronger demand from South China prevented further drops.

East Asia Market Overview

Singapore:

High inventories and weak demand in Vietnam and Indonesia kept export prices under pressure, but South China demand helped limit losses. Some traders cut September cargo offers to $420/t fob, while October offers stayed at $425/t.

Malaysia:

Demand dropped because of wet weather and oversupply. Long holidays in August and September also slowed activity. Domestic supply was sufficient, with most buyers sourcing from the state refiner.

Indonesia:

Demand was steady but buyers waited for new government tenders. Imports were minimal since local supply was enough.

Thailand:

Some concerns about budget changes after a new prime minister, but overall demand stayed stable.

Vietnam:

Spot buying was weak due to heavy rain and high stocks. Typhoon Kajiki caused flooding in north Vietnam, delaying road works and transport. Singapore exports were seen as too expensive.

Bitumen Market Update China:

South China demand improved with drier weather and lower refinery output, but east China remained well supplied with weak demand.

Africa Market Overview

West Africa:

Heavy rains slowed road and construction work, keeping bitumen demand weak in Nigeria, Cameroon, and Ghana. Import prices in early September fell, mainly from a $5 drop in Spanish and Ivorian FOB premiums to Mediterranean HSFO, down to about $10/t and $115/t.

East Africa:

Key markets like Kenya and Uganda remained active with projects, while truck flows to the DRC were steady. Iranian bulk FOB prices at BND dropped by $11–20/t due to weak South Asian demand, but Iranian drummed exports rose $3/t. Ethiopia’s PM promised faster progress on infrastructure projects.

South Africa:

Two bitumen tankers from the Middle East and Singapore faced delays on the way to Durban. Sasol–Prax’s Natref refinery began dual-cycle bitumen output in September, targeting 90,000t for domestic and regional supply, offsetting import delays. Road construction picked up as the paving season started, increasing demand.

Middle East Market Overview

Bitumen Market Update Bahrain:

Seaborne FOB Sitra prices stayed flat at $400/t for several weeks, with low demand limiting exports.

Iran:

Bulk bitumen prices fell due to weak demand from South Asia, even though VB feedstock prices increased. The Iranian Rial sharply depreciated against the USD as concerns grew about the possible reactivation of UN sanctions. Drummed bitumen prices rose slightly. Delivery schedules were affected by periodic power outages. Buying interest from Southeast Asia, Kenya, Tanzania, South Africa, and Sri Lanka remained strong.

Iraq:

Suppliers are concerned about shrinking profit margins, as domestic feedstock costs are paid in dinars while sales are priced in US dollars. To offset the dinar’s devaluation, they are forced to set higher FOB export prices.