Bitumen Market Overview 5 May 2025
Brent Crude Falls on Sanctions and Conflicts
Over the past week, Brent crude oil price dropped nearly 20% since early April, reaching around $61 per barrel. U.S. imposed secondary sanctions on entities buying Iranian oil or petrochemical products, directly targeting China. Iran’s main remaining customer. This new heightened pressure for Tehran and stalled nuclear talks and ongoing U.S.-Iran tensions, briefly pushing oil prices up. Rising tensions in the Middle East, including missile attacks and the Israel-Hamas conflict, added to market fluctuation.
Global Bitumen Market Insights
Bitumen prices declined across major export hubs, including Singapore and Europe, due to abundant supply, weak demand, and falling crude and fuel oil prices. In Europe, prices dropped in markets like Germany, France, the UK, and Benelux, while Mediterranean prices also fell. Africa saw lower import prices, but East Africa experienced slight gains in drummed bitumen from the Middle East Gulf. Current FOB prices are: Rotterdam $432, Iran $341, Turkey $391, and Singapore $404.
East Asia Market Overview
Singapore’s seaborne bitumen prices for May and June-loading cargoes dropped to $400-$407/t FOB, influenced by higher regional supply and weak demand from Southeast Asia, particularly Vietnam and Indonesia.
In Malaysia, demand declined due to heavy rainfall and a lack of infrastructure projects, with FOB prices from the Port Klang/Langat reaching $460-$480/t. Demand in Indonesia was also weak, with buyers hesitant to commit at $400-$405/t FOB due to high inventories and delayed tenders.
In Thailand, FOB prices remained stable at $410-$415/t. In Vietnam, demand improved after a seasonal rains, but buyers rejected Singapore’s higher offers and maintained their bids at $405/t FOB due to sufficient domestic supply. In China, domestic ex-works prices equivalent to FOB ranged from $477-533/t in East China and $416/t in South China.
Africa Market Overview
Bitumen prices in Africa generally dropped during past week, with slight price increases for drummed shipments to East Africa.
In West Africa, bitumen cargo prices dropped due to lower crude and HSFO prices, and Abidjan export prices were $503.90-$507.90/t. In East Africa, drummed bitumen prices rose due to higher Iranian FOB rates and disruptions at Bandar Abbas. Road project activity in Kenya and Uganda is expected to boost demand.
In South Africa, Durban prices dropped to R11,300-11,700/t, while ex-terminal prices were higher by R800-1,000/t. Domestic ex-works prices fell to R11,800-12,200/t.
Middle East Market Overview
The bitumen markets experienced disruptions due to force majeure at Bandar Abbas port, limiting seaborne activity. In Bahrain, seaborne prices remained stable at $370/t FOB Sitra, with low demand.
Iran’s seaborne offers increased to $340-345/t FOB, driven by higher vacuum bottom feedstock prices, but market activity was subdued due to delays caused by the force majeure at Bandar Abbas port. Iraq also faced export limitations.
