Asian Bitumen Market Steadies Amid Regional Demand Imbalances

Key Highlights

• India sees regional gains, led by Karnataka on limited imported cargo availability.
• Iran supply tightens sharply, with VB feedstock far below demand needs.
• China and Southeast Asia remain weak due to seasonal slowdowns and soft construction activity.
• Market outlook stable-soft, with limited upside unless demand improves or supply tightens further.

Regional Bitumen Prices Diverge as India and Iran See Firmness

• Bitumen prices in India showed mixed momentum across regions. Karnataka led domestic gains, with Mangalore prices rising to Rs 40,500/t ($456/t) ex-tank, driven by limited availability of imported cargoes. 
• In Iran, tight supply and higher feedstock costs supported upward pricing, with bulk seaborne prices at $275–280/t FOB Bandar Abbas, while drum cargo prices remained relatively stable at $360–376/t FOB. 
• In China, domestic bitumen prices softened slightly under weak seasonal demand, with offers in Shandong at 2,950–3,620 yuan/t ($416–510/t) and East/South China trending marginally lower.

Uneven Demand Across Asia; Iran Tightens Supply Amid VB Shortage

• Demand patterns remained uneven across Asia. In India, consumption was strong in the southern and western regions due to favorable weather, while northern regions remained sluggish. 
• Iranian supply tightened considerably, with domestic VB feedstock availability at 120,000 t against a demand requirement of 271,000 t, further tightening bitumen supply. Across Southeast Asia, overall demand remained weak and construction activity was subdued due to seasonal rains.

Asia Bitumen Sentiment Soft; New ITPL Plant Boosts South India Supply

• The Asia-Pacific and Singapore bitumen markets continued to face soft-to-stable conditions. A combination of weak demand in Southeast Asia, competitive domestic pricing in China and India, and steady refinery output in Singapore is limiting seaborne trading activity. In China, muted winter procurement and constrained downstream activity contributed to subdued price sentiment.
• Indian Oil Total inaugurates greenfield plant near Chennai. The plant is equipped to manufacture high-performance polymer modified bitumen, crumb rubber modified bitumen, natural rubber modified bitumen, and bitumen emulsions, significantly strengthening IndianOil Total Private Limited’s supply capabilities across the southern region of India. 
• Indian Oil Total Private Limited (ITPL), the joint venture between Indian Oil Corporation (IOC) and TotalEnergies Marketing Services SAS, France, inaugurated its Greenfield Bitumen Derivatives Plant at Gummidipoondi near Chennai recently.

Market Expectation: Stable-to-Soft Outlook as Asian Demand Stays Weak

In the near term, the bitumen market is expected to remain stable with a slightly bearish bias. While India and Iran show localized price strength due to supply constraints, broader Asian demand remains weak—particularly in Southeast Asia, where weather-related slowdowns persist. Unless construction activity rebounds or supply tightens further, market participants should expect prices to fluctuate within a narrow range with limited upward momentum.