Asian Bitumen Market Steady Amid Regional Weakness and Supply Delays

Key Highlights

1. Asian bitumen prices held steady amid sluggish demand and ample supply.
2. Iran’s export licensing delays disrupted regional shipments and availability.
3. India’s high inventories and port congestion slowed fresh imports.
4. Regional prices likely to remain stable with limited upside until December.

Asian Bitumen Prices Hold Rangebound Amid Mixed Regional Trends

• Asian bitumen prices remained rangebound across key regions this week.
• China: Import discussions from South Korea and Singapore were heard between $390–415/ton CFR, depending on destination and quality.
• Taiwan: Regional offers hovered around $395/ton FOB, with limited transactions as most November cargoes were already sold out.
• Middle East: Prices were mixed — Iraq reduced drum export offers to $335–350/ton FOB Bandar Abbas, Bahrain remained firm at $400/ton FOB Sitra, while Iran struggled with export licensing delays.
• India: Imported bitumen from the Middle East was offered around $260–265/ton FOB, though high inventory levels kept buying activity muted.

Weak Demand and Ample Supply Keep Asian Bitumen Under Pressure

• Market sentiment across Asia remained largely subdued.
• In China, colder northern weather slowed demand, while southern regions saw slightly firmer buying amid dry conditions.
• India continued to face weak consumption due to extended rains and large stockpiles at major ports.
• Taiwan’s supply was nearly sold out for November, with limited spot availability
• The Middle East saw continued export delays due to permit issues in Iran, while producers in Iraq and Bahrain adjusted output and pricing based on regional offtake.
• Overall, regional supply remains sufficient, but demand weakness—particularly from infrastructure and road projects—continues to pressure prices.

Market News: Export Delays, Price Cuts, and Port Congestion Shape Bitumen Trade

• Export Issues in Iran: Ongoing export license delays disrupted shipment schedules and limited availability for key buyers.
• Iraq Price Adjustment: To stimulate sales, Iraqi suppliers reduced export drum prices by nearly $15–20/ton FOB.
• Stable Operations in Bahrain: Production at Sitra continued at a controlled rate, helping maintain a stable pricing environment around $400/ton FOB.
• India’s Port Congestion: Full storage tanks and slow port clearance led traders to defer new import bookings despite lower freight costs.

Market Outlook: Asian Bitumen Likely to Stay Stable with Limited Near-Term Upside

• The short-term outlook for bitumen across Asia remains low to stable. Persistent rainfall in India, Vietnam, and Malaysia is expected to cap demand through early November. Meanwhile, Thailand and South Korea are likely to maintain steady consumption trends.
• Singapore export prices are expected to remain around $395–400/ton FOB until stronger buying interest emerges in December. In the Middle East, supply restrictions and export delays could lend temporary support, though weak regional demand is likely to prevent any significant price rebound.