Bitumen Market Overview 12 May 2025
Crude Market Snapshot
Brent crude oil prices fluctuated between $61 and $63 per barrel over the past week. OPEC+ announced plans to increase production by 411,000 barrels per day from June, which raised concerns about potential oversupply. Geopolitical tensions played a pivotal role, with rising military activity between India and Pakistan adding regional risk. Stalled nuclear talks between Iran and the U.S. kept supply concerns over Iranian oil in focus.
Global Bitumen Market Analysis
The market was generally under pressure, with declines in key markets. Prices for export cargoes from Singapore dropped to $398-$405/t. Iranian bitumen prices rose slightly due to tight supply and exchange rate volatility.
East Asia Market Overview
Singapore bitumen prices declined due to weak Southeast Asian demand, unsold May cargoes, and delayed April liftings, leading to oversupply and more idle vessels. Prompt offers, like Chevron’s $401.50/t fob, saw no interest, while some refiners held firm at $405-$410/t fob. Bitumen Market Analysis and demand in Malaysia has improved post-Hari Raya, while Indonesia remains weak due to pending delays. Thailand’s demand is steady amid tight supply, with imports from Singapore up 284% in Q1 2025. Vietnam’s demand is sluggish, pressured by cheaper South China offers. In China, supply has increased, but poor weather continues to limit demand.
Africa Market Overview
Bitumen prices in various regions experienced mixed trends. The competitive landscape and weather patterns influenced demand in multiple markets. In West Africa, bulk bitumen import prices declined due to weak Mediterranean HSFO values, with a slight rebound later in the week. East Africa saw Iranian prices rise slightly amid tight supply, with drummed exports up $3.50/t, while Bahraini prices stayed stable. US sanctions disrupted shipments to Kenya, and heavy rains reduced demand in Tanzania. Direct exports from BMT to Djibouti for Ethiopia are increasing. In Southern Africa, the Sitra refinery shutdown is expected to halt exports for two months, affecting global supply and South African imports.
Middle East Market Overview
The Bitumen Market Analysis in the Middle East exhibited mixed conditions, influenced by supply disruptions, scheduled refinery maintenance, and fluctuating currency exchange rates. Bitumen prices in Bahrain held steady at $370/t FOB Sitra, with limited May supply and no June exports due to refinery maintenance. Iran saw slight price increases driven by tight supply and currency volatility, with strong local demand and ongoing logistical issues. Domestic prices for VB feedstock rose by 4%. Iraqi drum prices were stable to slightly lower amid weak market activity.
