Bitumen Market Faces Pressure Amid Crude Crash, Port Disruptions, and Weak Demand

Key Highlights

1. Price Drops: Bitumen prices fell globally; Singapore ($405), South Korea ($385), Bahrain ($370), Europe ($410–$440), India (down by $7–$8/MT for VG30/VG40).
2. Crude Slide: Brent crude hit a low of $61–$65, marking the steepest fall since 2021.
3. Weak Demand: Chinese demand remains sluggish due to industrial slowdown.
4. Supply Risks: OPEC+ output and rising oil reserves create oversupply concerns.
5. Iran Disruption: Shahid Rajaei port fire caused temporary logistical issues for bitumen flow.

Petroleum Price: Global Bitumen Price Snapshot

• During the past week, global bitumen prices reflected downward pressure in alignment with falling crude oil benchmarks.
• Singapore: 180CST closed at $417, while bitumen prices stood at $405.
• South Korea: Bitumen price reported at $385.
• Bahrain: Prices remained fixed at $370.
• Europe: Prices stayed stable, ranging between $410–$440.
• India: On May 1, prices saw a decline of $7 for VG30 and $8 for VG40, in line with broader market trends.
• Crude Oil: Brent crude fell significantly to the $61–$65 range, marking the steepest weekly drop since 2021.

Petroleum Demand and Supply: Demand Remains Under Pressure

• Despite multiple geopolitical flashpoints, the bitumen market showed a muted response due to dominant economic and structural factors.
• Weak demand, particularly from China, continues to pressure prices, as industrial fuel consumption declines and economic stagnation persists.
• Supply-side pressure is influenced by potential production increases from OPEC+, and growing oil reserves, undermining any short-term upward price movement.
• The recent port disruption in Iran due to the Shahid Rajaei fire incident has caused logistical delays, potentially affecting bitumen supply temporarily from the region.

Market News: Market Adjustments Expected Next Week

• U.S.–Ukraine signed a historic economic cooperation agreement focusing on rare minerals. Tensions persist in Gaza, the Red Sea, and Iran–U.S. negotiations, though they have not significantly influenced oil or bitumen prices.
• A massive fire at Shahid Rajaei port led to casualties and disrupted operations, impacting container movement and slowing bitumen logistics.
• The second term of Donald Trump’s presidency has been marked by increased sanctions on Iran, a trade war with China, and pressures on oil-producing nations.

Expert Opinion: Bitumen Market to Stay Weak Amid Low Demand and Ample Supply

Despite geopolitical unrest, economic fundamentals are steering the market direction. With continued demand weakness and potential for oversupply, bitumen prices may remain under pressure, especially if Brent crude falls below the $60 threshold. Iranian market adjustments are anticipated next week, especially following port disruptions and currency impacts.