Bitumen Market Steady Amid Global Volatility and Seasonal Demand Boost

Key Highlights

• Crude Correction: Brent and WTI fell sharply due to OPEC+ production increases and weaker Chinese demand.
• Bitumen Trends: Singapore and South Korea prices stable; Bahrain prices declined by $50 to $370.
• India Outlook: Domestic bitumen prices stable; seasonal demand supports sentiment despite refinery uncertainty.
• Geopolitical Risk: Ongoing global tensions and trade policies continue to cloud market direction.

Crude Oil Sees Steep Decline Amid OPEC+ Output Hike

• Oil prices witnessed a sharp decline during the week. Brent crude fell to $66.18 per barrel and WTI settled at approximately $62.45, driven by concerns over increasing global supply and slowing demand, especially in China. The announcement by several OPEC+ members to ramp up production also contributed to bearish sentiment.
• Singapore’s 180CST fuel oil closed at $430. Bitumen prices remained stable in Singapore and South Korea at $415 and $385, respectively. However, Bahrain’s bitumen prices dropped by $50 to $370. In Europe, bitumen was traded within the $390–430 range.

Global Market Overview: Bitumen Prices Stable Across Asia, Bahrain Registers Drop

• The global energy market remained volatile this past week due to major geopolitical and economic developments. A key event was the U.S. government's decision to reduce tariffs on imported Chinese goods. 
• While this led to a short-term boost in global market sentiment, former President Donald Trump clarified that tariff elimination would depend on China’s reciprocal steps. Meanwhile, the IMF, in its April 2025 report, forecasted a global growth slowdown to 2.8% for the year, citing rising trade tensions and the potential consequences of U.S. tariff policy on global financial stability.
• Ongoing geopolitical tensions, including the Russia–Ukraine conflict, EU sanctions on Russia, and inconclusive nuclear negotiations between Iran and the U.S., further added to market uncertainty.

India Market Trends: India Bitumen Market Holds Firm with Seasonal Demand Support

• Bitumen prices in India showed a slight increase in mid-April, but market discussions suggest prices may stabilize or decline in the near term. Refinery decisions remain unclear, keeping market participants cautious. 
• Seasonal demand from the start of construction activity in the Northern Hemisphere has lent some support to the domestic market, allowing bitumen prices to show relative stability despite crude oil's decline.

Iran Market Sentiment: Bitumen Exports in Doubt Due to Policy Uncertainty

• The Iranian bitumen market is currently in a state of indecision. The continued devaluation of the U.S. dollar against the Iranian rial, coupled with uncertainty surrounding the Iran-U.S. nuclear talks, has dampened vacuum bottom procurement activity. 
• Exporters are in a wait-and-watch mode, anticipating outcomes from the ongoing diplomatic discussions. If the rial strengthens further and oil prices recover, an upward trend in Iranian bitumen prices could follow, though current market sentiment remains cautious.

Expert Opinion and Market Outlook

The bitumen market is likely to remain directionless in the short term, heavily influenced by geopolitical developments, crude oil fluctuations, and currency movements in key regions. Seasonal demand may offer some support, but broader macroeconomic uncertainties continue to dominate.