Bitumen Market Overview 26 May 2025

Crude Market News

During May 17 and May 23, Brent crude oil prices experienced a slight increase, rising from approximately $64.31 to $64.78 per barrel. Geopolitically, tensions in the Middle East, including the Israeli Hamas conflict and unrest in Nigeria and Libya, raised concerns about potential disruptions in oil supply. Additionally, new sanctions on Russia and a decline in its oil exports further exacerbated supply worries.

Global Bitumen Market Overview

Bitumen prices showed a narrow range. Prices rose slightly in Europe and the Mediterranean, driven by HSFO gains. In contrast, prices fell in Singapore and Iran due to weaker demand. African prices mostly declined, though demand grew in South Africa, Nigeria, and Kenya. Singapore exports increased with deals to Vietnam. Iranian prices dropped slightly, pressured by cheaper V.B. and low seasonal demand. FOB Prices: Singapore $391-400/t, Middle East $344-370/t.

South-East Asia Market Overview

Singapore: Bitumen exports picked up, mainly to Vietnam. Prices held at $398-400/t FOB. Chinese offers weakened; some suppliers shifted focus to the domestic market.

Vietnam: Demand is ready to buy, cautious due to rain and good stock. Jumbo sales sold at $392-400/t FOB. Singapore bids in South Vietnam at $385-395/t.

Philippines & Thailand: Moderate demand.

Indonesia: demand weak; possible June tenders could boost market. Bids below $390/t FOB Singapore were rejected.

Malaysia: Demand was generally weak due to no new projects and rainy weather in areas like Johor Bahru and Kuala Lumpur, which hindered road paving activities.

China: Domestic prices rose due to feedstock costs. Weak demand in south and east China limits price hikes. Northern demand strong; inventories falling. Some refineries paused exports, focusing on domestic sales.

Africa Market Overview

West Africa:

Imported bitumen prices dropped last week. In Nigeria, construction activity stayed strong as contractors rushed to finish projects before the rainy season, expected in late June.

East Africa:

Prices slipped slightly due to lower Iranian export rates. Demand in Kenya remained strong. Iranian bulk bitumen fell by $4.20/t. Drummed exports dropped $4/t FOB BND Abba. Kenya’s better economic outlook boosted infrastructure work and bitumen demand. In Uganda, road projects may resume by early June after a slow start in 2025. Ethiopia’s demand is estimated at 45,000-50,000t, but financing remains a challenge.

South Africa:

Roadwork remains active, especially in South Africa, where major highway upgrades are ongoing. Despite colder weather, hot bitumen use is steady, showing strong demand and project progress.

Middle-East Market Overview

Iranian bitumen prices edged lower, driven by a drop in vacuum bottom (VB) feedstock costs and weaker seasonal demand of the upcoming monsoon season in South Asia. Exchange rate volatility remains high following recent US-Iran talks and broader geopolitical risks, which also contributed to limited trading activity on the Iran Mercantile Exchange (IME).

Effective 24 May, the Central Bank of Iran (CBI) plans to increase the foreign currency repatriation requirement for exporters from 60% to 80%. The new regulation also regulates the use of the official CBI Exchange rate, which could reduce exporters’ cash flow.

Drummed bitumen prices dropped by $5-8/t as suppliers faced rising cost pressures and a shortage of containers. Demand for jumbo bags from the Far East remained thin.

Iraqi drummed bitumen prices held steady.

Bahrain seaborne prices remained unchanged at $370/t fob Sitra amid subdued demand.