Bitumen Market Overview 7 July 2025

Crude Oil Market Overview

Global bitumen prices continue to be influenced by crude oil fluctuations, which ranged between $64 and $68 per barrel recently. This was driven by high U.S. inventories and increased production by OPEC+. Geopolitical tensions in the Middle East, including the fragile ceasefire between Iran and Israel, continue to affect market sentiment. Despite these challenges, a gradual improvement in the global bitumen market is expected in the second half of 2025.

Global Bitumen Market Trends

In Europe, bitumen cargo prices declined last week due to falling fuel oil values, while Singapore saw price gains amid tighter supply. Iranian bitumen prices edged down slightly as demand softened. In the Mediterranean region, prices posted sharp losses for the second consecutive week, driven by continued declines in regional HSFO values. Heavy rainfall across West Africa has slowed construction and reduced bitumen demand.

East Asia Market Overview

Singapore: Export prices trended upward, with strong demand for late July and August cargoes. August-loading offers rose to $420–$425/ton FOB.
Malaysia: Construction has resumed following improved project financing, though seasonal rains in cities like Kuala Lumpur have slowed trading.
Indonesia: Demand remains moderate, with stronger activity in western regions. Government road projects in Java are expected to be awarded by late July.
Thailand: Bitumen consumption is stable but slightly affected by rainfall.
Vietnam: Intermittent southern rainfall has weakened demand, shifting focus to northern and central regions.
China: Rain has limited consumption in southern, eastern, and northern areas. Eastern China’s drier forecast is expected to boost demand and support prices.

Africa Market Overview

West Africa: Construction and bitumen demand have declined, particularly in Nigeria and along the stretch from Liberia to Senegal, due to heavy rains.
East Africa: Kenya, Uganda, and the DRC saw reduced construction activity and bitumen demand because of colder weather and rainfall. Uganda has shown a rebound, increasing local bitumen use. Iranian exports dropped, with bulk bitumen falling by $4.90/ton and drummed bitumen by $1/ton FOB BND. The U.S.-Crokeno Rwanda-DRC export deal has increased optimism for regional stability and trade.
Southern Africa: Demand remains stable despite colder weather. Hot mix asphalt projects are ongoing but delayed, while Zambia and Botswana maintain steady consumption.

Middle East Market Overview

Bahrain: Seaborne bitumen prices held steady at $400/ton FOB Sitra, with limited exports.
Iran: Bulk bitumen export prices edged down amid weak overall demand. Trading remains active as vessel owners secure cargoes to restock, but production is limited due to scarce vacuum bottom feedstock. Drummed and Flexitank cargo prices remain supported by tight supply. Demand for drummed bitumen continues strong in Southeast Asia, Africa, and neighboring Middle Eastern countries.
Iraq: Weak demand caused a drop in drummed bitumen exports. Rising container freight rates and new “Emergency Situation Surcharges” on booted shipments further reduced importer interest.

Market Outlook

Global bitumen prices are expected to stabilize in the second half of 2025, supported by tighter supplies in key exporting regions and gradual recovery in construction demand across Asia and Africa. Monitoring crude oil trends, regional weather patterns, and geopolitical developments will remain crucial for predicting short-term price movements.