Bitumen Market Overview 29 September 2025
Global Geopolitical Update
At the 80th UN General Assembly, Zelensky and Eastern European leaders called for action against Russia. Trump criticized Europe’s policies and supported Ukraine in reclaiming its territories. Syria condemned Israeli attacks and called for sanctions to be lifted.
Iran stated it is not pursuing nuclear weapons and accused Europe of pushing to reinstate U.S.-led sanctions. Brent crude oil prices reached a two-month high, rising to around $69.
Global Bitumen Market Update
Bitumen cargo prices from Singapore, Iran, and European export points fell due to abundant supply and limited demand. While export values to West African markets increased, Gulf Bitumen Market update exports to East African markets declined. Iranian export prices dropped due to weak demand and lower production costs. Importers remained cautious because of high inventory levels, and exchange rate volatility rose amid ongoing sanction concerns.
East Asia Market Overview
In Singapore export prices continued to fall due to weak regional demand. Despite scheduled refinery maintenance in Oct, supply remained ample, with most suppliers offering Oct-loading cargoes at $400–410/t FOB Singapore.
In Malaysia, demand remained low but slightly above early Sep, with ample local and Singaporean supply. In Indonesia, consumption was steady, though re-tendered road projects may boost demand only from late Oct to early Nov. Oversupply and price competition limited seaborne imports.
In Thailand, rains from Typhoon cut demand in the north and northeast, with further weakness expected from Typhoon Opong. Export supply was tight due to reduced refinery output and fuel oil prioritization.
In Vietnam and southern China, Oct loading discussions were weak amid low demand and heavy rains. Southern China trade halted on 24 Sep due to Typhoon Ragasa, causing flooding and transport delays. Demand should remain subdued until Nov when drier weather may aid recovery.
Africa Market Overview
West Africa:
Import cargo prices rose in the week ending 26 Sep, supported by higher Mediterranean HSFO and crude oil prices. Construction and bitumen demand stayed weak, especially in Nigeria, due to heavy rains. Continued rain is expected until mid-Oct, after which demand should rise into spring and early summer.
East Africa:
Delivered bitumen prices fell sharply due to lower Iranian export prices and reduced freight rates. Bulk Iranian bitumen dropped $5.30/t, drummed exports $1/t, amid weak demand, high inventories, and lower production costs. In Kenya, road projects face caution over the 2025/26 budget, but elections could accelerate work.
South Africa:
Prices rose slightly despite tight supply from delayed imports and limited refinery output. Trade continued to Botswana and Zambia via truck from South Africa, while domestic construction activity increased toward the start of the road paving season.
Middle East Market Overview
Bahrain Bitumen Market:
Listed waterborne values remained unchanged at $400/t FOB Sitra. It remains unclear when seaborne exports will resume.
Iran Bitumen Market:
Bitumen export prices fell on weak demand and lower production costs, with high inventories keeping importers sidelined. Exchange rate volatility rose amid sanction concerns.
Most participants stayed cautious, awaiting VB price updates. By week’s end, bulk FOB demand rebounded as prices declined. Drummed prices were mixed. African markets showed strong interest, while South Asian demand fell due to rain and lower local prices.
Iraq Bitumen Market:
Bitumen export prices varied, though most Kurdish producers kept them stable. Northern Iraq’s supply may be impacted by the Baghdad-Erbil agreement, as Kurdistan plans to resume crude exports to Ceyhan, possibly limiting vacuum residue availability.
