Weekly Bitumen Market Report – 15 May 2026

Summary

Global bitumen markets continued to show upward price momentum across several key regions, supported by tighter refinery supply, firmer crude oil fundamentals, and improving fuel oil values.

In Europe, export prices strengthened alongside gains in Singapore and South Korea, where refinery production was frequently reduced due to weaker production economics and limited operational margins. Rising crude oil and fuel oil prices also provided additional support to bitumen valuations.

Across northwest and central Europe, truck prices remained generally stable, although domestic and export prices in Poland and the Czech Republic moved higher amid stronger crude and fuel oil markets and expectations of improving seasonal demand in the coming weeks.

Mediterranean cargo prices also increased, driven by higher regional high-sulphur fuel oil (HSFO) values and firmer bitumen differentials against HSFO. Market sentiment was further supported by tight refinery supply and limited spot cargo availability across the region.

In Africa, truck prices continued to rise in South Africa and Kenya as import costs for bitumen moved higher, reflecting stronger international market fundamentals and elevated freight-related expenses.

Meanwhile, Singapore bitumen prices edged upward after several refiners reduced output because of poor refining margins. However, gains remained limited due to relatively weak regional demand conditions.

In the Middle East, export activity and overall trading volumes slowed considerably as ongoing geopolitical tensions and the continued US naval blockade disrupted vessel movements through the Strait of Hormuz, creating additional uncertainty for regional supply chains and export logistics.

Global Waterborne Bitumen Market Overview – FOB Prices

The latest global FOB waterborne bitumen assessments indicate significant regional price disparities, reflecting ongoing differences in refinery supply, freight conditions, crude oil trends, and regional demand dynamics.

Europe continues to record the highest bitumen price levels globally. Rotterdam reached approximately $675/t FOB, while Baltic prices stood near $667/t FOB. Southern European markets also remained firm, with Greece assessed around $652/t FOB, Spain at $650/t FOB, and Italy and Turkey both near $647/t FOB. Tight refinery supply, stronger fuel oil markets, and seasonal infrastructure demand continue to support European pricing.

In Africa, Ivory Coast recorded the highest assessed price globally at approximately $757/t FOB, highlighting strong regional import dependence and elevated logistics costs.

Asian markets remained comparatively softer. Singapore was assessed around $562/t FOB, while Taiwan and Bahrain stood near $555/t and $550/t FOB respectively. Thailand and South Korea were reported at approximately $530/t and $529/t FOB. Reduced refinery operating rates in parts of Asia provided some price support, although weaker regional demand limited stronger upward movement.

Iran continued to offer one of the most competitively priced bitumen markets globally, with FOB levels assessed near $433/t. However, regional geopolitical tensions, logistical disruptions around the Strait of Hormuz, shipping constraints, and export-related regulatory pressures continue to affect trade flows and overall export activity.

Overall, the global bitumen market remains supported by constrained refinery supply, firmer crude and fuel oil values, and ongoing logistical challenges across several major export regions.

Regional Market Developments

West Africa:

Bitumen import prices into west Africa strengthened during the week ending 15 May, supported by a rebound in Mediterranean high-sulphur fuel oil (HSFO) prices, firmer bitumen premiums, and rising tanker freight rates linked to elevated bunker fuel costs.

Cargo discharge activity across Nigerian and regional west African terminals slowed because of weaker seasonal demand, particularly in Nigeria, where persistent rainfall reduced road construction activity.

Despite softer demand conditions, cargo flows into west Africa continued from multiple origins including China, the Baltic region, Turkey, and Togo.

Overall, the west African bitumen market remains supported by firmer international pricing and elevated freight costs, although regional demand growth continues to be constrained by weather-related slowdowns in infrastructure activity.

East Africa

Delivered bitumen prices into east African markets continued to strengthen as rising container freight costs more than offset recent declines in Iranian FOB bitumen prices.

Iranian drummed bitumen export prices fell by around $10/t to $486-516/t FOB Bandar Abbas, while bulk cargo prices declined to approximately $418-448/t FOB Bandar Abbas.

However, freight rates for drummed cargo movements from Bandar Abbas and Jebel Ali to key east African destinations including Mombasa, Dar es Salaam, and Djibouti increased by nearly $20/t, reaching around $250-260/t.

Market participants also reported that some international container shipping lines were attempting to raise freight rates sharply to as high as $10,000-12,000 per container, compared with approximately $630-700 per container during April. Nevertheless, several market sources noted that many container vessels are currently unable to operate efficiently from the Middle East Gulf to east African destinations because of ongoing regional logistical disruptions.

Meanwhile, freight rates offered by Iran’s state-owned IRISL shipping line gradually increased to around $2,800 per container for direct Bandar Abbas to east Africa shipments, with at least one IRISL vessel reportedly heading toward Dar es Salaam.

Overall, east African delivered bitumen prices remain supported primarily by elevated freight and logistics costs despite softer Iranian FOB market levels.

South Africa

South African domestic bitumen truck prices continued to rise sharply during the week ending 15 May, increasing by approximately Rand 700/t to around Rand 14,700-15,200/t ex-works. The market remained supported by stronger Mediterranean FOB cargo prices and rising tanker freight rates.

Based on current Mediterranean cargo indications and tanker freight rates estimated at $250-270/t for 5,000-10,000t shipments into South Africa, CFR Durban values were assessed around $880-900/t during the week.

Construction and paving activity slowed in parts of South Africa because of heavy rainfall and localized flooding since early May. However, market participants expect infrastructure activity to accelerate during the upcoming winter period as authorities prioritize urgent road repair projects.

Overall, the South African bitumen market remains firm, supported by elevated import costs, freight strength, and expectations of sustained infrastructure demand.

Asia-Pacific Market Overview

Singapore

Singapore bitumen prices edged slightly higher as several regional refiners continued to reduce production because of weak refining economics and uncertainties surrounding crude feedstock availability. However, gains remained limited due to subdued regional demand.

Supplies of June-loading cargoes from Singapore stayed tight as refiners prioritized higher-value petroleum products over bitumen, which continues to trade at significant discounts to 380cst high-sulphur fuel oil (HSFO).

Although some supply support may come from south China-origin cargoes, producers there may redirect volumes toward the domestic market if southeast Asian export demand remains unattractive.

Some Indonesian and Vietnamese buyers continued to seek June-loading cargoes, although the gap between buyer bids and seller expectations restricted spot market activity. Indonesian buying indications were assessed around $550-570/t FOB Singapore on a netback basis, while Vietnamese bids remained lower at approximately $540-545/t FOB Singapore, levels viewed as unworkable by most suppliers.

Meanwhile, regional freight rates came under pressure as reduced production and weaker demand left a growing number of vessels idle following the recent US-Iran geopolitical tensions.

China:

China’s bitumen market remained broadly balanced, with weak downstream demand offsetting the impact of ongoing production cuts.

Support from higher crude and fuel oil prices was partially visible, but overall trading activity stayed subdued due to limited buying interest and seasonal slowdown. Road paving activity weakened further as major infrastructure projects remained absent and the monsoon season approached, while rainfall continued to suppress consumption in several regions.

On the supply side, availability stayed tight as refiners maintained reduced operating rates amid limited crude feedstock. Although China increased imports of Brazilian and West African crude for July delivery, volumes remain well below pre-conflict levels.

Import activity into East China was limited, with CFR indications slightly higher at $565–575/t amid firmer crude and fuel oil markets. In South China, workable import levels edged up toward $600/t CFR, while FOB export discussions for May–June cargoes were reported at $560–570/t, supported by stronger regional demand and tighter Southeast Asian supply.

India:

Bitumen consumption in India saw a gradual improvement in some regions as lower-priced imported bulk cargoes from west coast ports attracted selective buying. However, overall demand remained below normal seasonal levels as the paving season neared its end.

Northern contractors, typically reliant on drum cargoes, shifted part of their interest toward bulk imports due to competitive pricing and limited domestic drum availability. At least one vessel discharged cargoes on the west coast, while another was en route, though overall import demand remained weak.

Supply constraints on the west coast led to a rebound in domestic prices, with imported bulk trading at around Rs68,000–71,000/t ($710–741/t) in Karnataka and Rs72,000–75,000/t in Mumbai.

Middle East suppliers continued to offer prompt FOB cargoes around $320/t or higher amid inventory pressure, but buying interest was limited due to geopolitical risks and shipping uncertainty. Container freight rates rose sharply to $3,000–4,000 per 20ft container ($150–200/t), further discouraging drum imports as some shipments remained delayed or unshipped.

Uncertainty around transit disruptions and lack of guarantee for vessel passage continued to weigh on import sentiment. Meanwhile, state refiners are expected to announce new VG10, VG30, and VG40 prices mid-month, with some market expectations pointing to a potential downward adjustment.

Iran Bitumen Market

Export activity from Iran remained subdued as geopolitical tensions in the Middle East and ongoing disruptions in the Strait of Hormuz continued to restrict vessel movement and weaken overall trade flows.

Supply and Export Offers

Some suppliers facing inventory pressure offered prompt-loading bulk cargoes at around $320–330/t FOB Bandar Abbas, but these volumes were limited and not widely accessible to buyers, particularly in South Asia. Despite relatively competitive FOB levels, vessel owners remained cautious due to security and routing risks, resulting in weak uptake. Most Iranian exporters stayed on the sidelines or reduced active participation in spot trade.

Trade Restrictions and Logistics Challenges

Shipping disruptions linked to regional tensions and perceived risks in passing through the Strait of Hormuz significantly reduced seaborne activity. As a result, many buyers in key markets—including India, East Africa, and parts of the Middle East—covered near-term requirements earlier and showed limited fresh demand.

Logistical constraints, high transport costs, and uncertainty around shipping insurance and vessel safety further pressured trade flows. Buyers increasingly requested deeper discounts and more flexible payment terms to offset transit and geopolitical risks.

Export Diversion and Alternative Routes

With seaborne routes constrained, some Iranian suppliers redirected cargoes through overland and regional channels:

• Pakistan: Bulk cargoes moved by tank truck at around IRR 495,000–510,000/kg ex-Esfahan
• Afghanistan: Approximately 6,000 tonnes of drum cargoes exported at IRR 610,000–630,000/kg ex-Esfahan
• Uzbekistan: Small volumes of drums traded at around $385/t ex-works
• Turkey: Bulk cargoes exported at around $320/t ex-works Tabriz, with some offers reaching $400/t CPT Dogubayazit

Pricing and Market Sentiment

Drummed cargoes were occasionally offered at $385–420/t FOB Bandar Abbas, but these levels were not consistently available or widely accepted in South Asian markets due to shipping uncertainty and restricted access to vessels.

Additionally, foreign exchange repatriation rules continued to pressure exporters, as required conversion rates remained above prevailing market offer levels, further limiting flexibility and competitiveness.

Alternative Logistics Attempts

Some suppliers explored alternative export solutions such as rail shipments toward China, with indicative offers for drums and jumbo bags in the range of $580–600/t CFR, although these flows remained limited and experimental.

Flexi-tank and jumbo-bag seaborne exports were largely absent from the market. Meanwhile, tight availability of steel coils added further cost pressure to production and packaging inputs.

Overall Market Outlook

Overall, Iranian bitumen exports remained constrained by a combination of geopolitical risk, shipping disruption, regulatory pressures, and weak demand from key importing regions. Trade activity is expected to remain limited unless logistical and political uncertainties ease.