Bitumen Market Overview 2 June 2025
Crude Market News
Brent crude oil prices dropped, reaching $62.78 per barrel on May 30. OPEC+ increased supply by 411,000 barrels per day for the third consecutive month, raising concerns of oversupply. Weak economic data from China and rising U.S. crude inventories signaled lower demand.
The Federal Reserve’s cautious stance on rate cuts strengthened the U.S. dollar. A stronger dollar and demand concerns put further pressure on oil and bitumen price. As a result, Brent crude fell to its lowest level since 2021.
Global Bitumen Price and Market Overview
Export prices from bitumen for Singapore, Iran, and the Mediterranean declined due to relatively weak demand and abundant supply, although seasonal demand in some parts of Africa and Europe provided limited support to the market.
In Singapore, bitumen export rates stalled due to a wide buy-sell gap and weak Southeast Asian demand. Iranian bulk bitumen prices dropped as weak demand outweighed rising V.B. feedstock costs.
South-East Asia Market Overview
In Singapore, the market remains stagnant with bitumen price $400-405/t FOB. June supply has declined compared to May, but weak demand in Southeast Asia and price gaps between sellers and buyers have stalled negotiations. In Malaysia, demand is low to moderate, with excess supply from Singapore. Rainfall and school holidays have reduced consumption. In Indonesia, market activity is weak. Some import demand has emerged for the second half of June.
In Thailand, the there is domestic demand, but exports remain limited. In Vietnam, June cargo demand is steady but weak. Most buyers are not in a hurry to purchase. Also in China, domestic prices are stable, demand remains weak. Production has increased in some areas, but with the onset of the rainy season, consumption is expected to decline.
Middle-East Market Overview
In Bahrain, FOB prices from Sitra remained steady at $370/t. Market sentiment is mixed as import demand stays weak, while export availability is limited due to ongoing refinery maintenance.
In Iran, bulk bitumen prices continued to decline as demand weakened, despite firmer vacuum bottom (V.B.) feedstock prices. Some suppliers offered discounts, but transactions were limited. Buying interest from Africa remained muted, with limited demand for jumbo bags from the Far East and Africa. Some suppliers are hopeful that the resumption of dollar-denominated trades on the IME will encourage more foreign buyers to participate.
In Iraq, bitumen export activity was limited due to a truck drivers’ strike at the border. Suppliers focused on fulfilling previous commitments and refrained from making new offers, as the end date of the strike remains uncertain.
Africa Market Overview
West Africa:
Bitumen imports increased to complete construction projects before the rainy season (mid-June to early July). Import prices declined due to a minor drop in HSFO prices. In Nigeria, bitumen imports remain strong due to increased paving activity at the end of the dry season.
East Africa:
imported drum bitumen prices remained steady. Iran bulk bitumen price FOB from BND were pressured down by $4.60, while drum bitumen remained unchanged. In Kenya, construction activity has increased due to improved economic conditions, public and private investment in road infrastructure. In Uganda, the market is awaiting improved demand after May. In Ethiopia, suppliers are facing trade finance challenges.
South Africa:
market activity has increased, while supply has declined due to maintenance at Bapco’s Bahrain refinery
