Weekly Bitumen Market Summary

Summary

Global bitumen markets showed mixed trends during the past week. Export prices strengthened in Singapore and Europe, supported by tight supply and higher crude oil and fuel oil values following renewed geopolitical tensions between the United States and Iran.

In Northern Europe and the Mediterranean, supply constraints and stronger demand ahead of the summer holiday season pushed cargo prices higher. An unexpected shutdown of bitumen production at Eni’s Taranto refinery further tightened Mediterranean supply and supported export values.

Across Sub-Saharan Africa, market activity remained relatively subdued, although export prices to West Africa continued to increase.

In Asia, Singapore’s FOB prices moved higher as limited spot availability and tight July-August supply supported the market. Conversely, South Korean export prices softened following the completion of a refinery tender.

Meanwhile, Iranian bulk bitumen export prices declined due to weaker buying interest, depreciation of the Iranian rial against the US dollar, and renewed regional tensions that reduced shipping activity and disrupted market confidence.

Overall, the global bitumen market remains heavily influenced by geopolitical developments, supply availability, and freight conditions, with regional supply constraints continuing to provide support for prices despite uneven demand across key export markets.

Global Waterborne Bitumen Market

Global waterborne bitumen prices showed mixed trends this week. Singapore remained the highest-priced export hub at $610/t FOB, supported by tight supply and limited spot availability. European markets also strengthened as tighter Mediterranean supply and higher crude oil prices supported export values.

Iran continued to offer one of the most competitive FOB prices at $328/t Bandar Abbas. However, renewed geopolitical tensions, shipping constraints, and banking challenges continued to limit export activity despite uninterrupted loading operations.

In West Africa, firm freight costs and limited supply supported higher prices, while demand across East Africa, India, and China remained subdued due to seasonal factors and cautious buying.

West Africa Market Update

Bitumen market activity across West Africa remained relatively weak during the past week, as heavy seasonal rainfall continued to slow construction projects and reduce demand in several key markets, including Nigeria, Ghana, Ivory Coast, Liberia, Sierra Leone, Guinea, and Gambia.

Despite subdued regional demand, bitumen cargo prices increased, supported by higher crude oil and high-sulphur fuel oil (HSFO) prices, along with tightening bitumen supply in the Mediterranean. Export premiums from Italy, Greece, and Turkey strengthened, while Spanish and Ivory Coast export premiums remained broadly stable.

Meanwhile, vessel movements continued to support supply into the region, with several dedicated bitumen tankers transporting cargoes from Mediterranean export terminals to Lomé (Togo), reinforcing the port’s role as a key distribution and transshipment hub for the West African bitumen market.

Overall, although seasonal weather continues to limit immediate demand, firmer feedstock prices and constrained Mediterranean supply are providing underlying support to export values into West Africa.

East Africa Market Update

Bitumen market activity across East Africa remained relatively subdued during the past week, as high import costs continued to limit purchasing activity. Many end-users still consider current bitumen prices too high, resulting in cautious procurement across the region.

The market continues to face supply challenges following disruptions to exports from Iran and the Middle East Gulf. Although Iranian bulk bitumen prices declined during the week, logistical constraints, banking restrictions, and renewed geopolitical tensions have continued to complicate trade and delay new transactions.

Freight rates for drummed bitumen shipments from Bandar Abbas and Jebel Ali to key East African destinations, including Mombasa, Dar es Salaam, and Djibouti, remained stable, providing limited support to regional trade.

Overall, while demand in East Africa remains restrained, the market continues to be influenced by geopolitical uncertainty, sanctions, and ongoing challenges in securing reliable supply from traditional export origins.

Singapore Market Update

The Singapore bitumen export market strengthened during the past week as tight supply and limited spot availability supported higher FOB prices. Most July-loading cargoes have already been committed, while feedstock constraints at several refineries are expected to keep August production and export availability limited.

Although some market participants anticipate price pressure once additional August cargoes become available, ongoing production constraints suggest that any potential downside may remain limited.

Regional demand presented a mixed picture. While buying interest from Australia is expected to improve toward the end of August, demand across Southeast Asia remained relatively weak due to seasonal factors, including the monsoon season in Vietnam and limited infrastructure activity in Indonesia. At the same time, Chinese exports continued to provide ample regional supply.

Looking ahead, some traders are evaluating the economic viability of exporting bitumen from the Mediterranean to the Asia-Pacific region, although long transit times and price volatility continue to limit broader participation.

Overall, the Singapore market remains supported by tight supply fundamentals, despite soft demand across several key Asian markets.

China Market Update

China’s bitumen market remained under pressure during the past week as seasonal rainfall and typhoons significantly weakened construction activity and road paving demand across several regions, including Guangxi, Zhejiang, and eastern China.

Domestic prices softened amid sluggish consumption and adequate refinery production, although a late-week recovery in crude oil prices helped stabilize market sentiment. Chinese refiners are also considered well supplied with crude oil through at least August, reducing concerns over any immediate supply disruptions despite renewed geopolitical tensions in the Middle East.

Import prices continued to decline in response to weaker domestic demand and falling buying interest. South Korean cargoes were traded at lower levels, while high regional export prices discouraged additional imports into southern China.

Looking ahead, maintenance at a major refinery in southern China is expected to limit July export availability, shifting market attention toward August-loading cargoes. Overall, the Chinese bitumen market remains characterized by weak demand, sufficient supply, and cautious buying activity, with weather conditions continuing to be the primary factor influencing short-term market trends.

India Market Update

India’s bitumen market remained subdued during the past week as the monsoon season continued to limit road construction activity across most regions. While demand in western and northern India showed slight improvement, consumption in southern and eastern markets remained weak.

Market participants primarily focused on replenishing inventories, but trading activity was constrained by limited availability of VG40 cargoes from the Middle East and ongoing geopolitical tensions affecting shipments from Iran. Uncertainty surrounding vessel availability and loading schedules also reduced buyers’ willingness to conclude new transactions.

Domestic prices for imported bitumen remained relatively stable; however, concerns persist that renewed disruptions in the Middle East could increase freight costs and place upward pressure on import prices in the coming weeks.

According to preliminary industry data, India’s bitumen consumption during April–June declined by approximately 39% compared with the same period last year, reflecting the combined impact of supply chain disruptions, elevated domestic prices, and slower paving activity.

Overall, the Indian market remains cautious, with seasonal demand weakness and geopolitical uncertainty continuing to shape trading conditions.

Iran Market Update

Iran’s bitumen export market faced continued pressure during the past week as weaker buying interest, depreciation of the Iranian rial, and renewed geopolitical tensions in the Middle East weighed on market sentiment. While loading operations at Bandar Abbas continued without major disruption, uncertainty over regional security and shipping activity limited new export transactions.

Bulk bitumen supply, particularly VG40, remained tight; however, subdued demand forced exporters to maintain or reduce FOB offer levels. In addition, the gap between customs reference prices and prevailing market prices under Iran’s foreign currency repatriation regulations discouraged some suppliers from offering new cargoes.

Despite weaker seaborne exports, cross-border trade with neighboring countries improved. Export volumes were reported to Pakistan, Afghanistan, Armenia, Turkey, and CIS markets, reflecting continued regional demand through land transportation channels.

Demand for drummed bitumen remained relatively firm, supporting steady export activity from Bandar Abbas, while jumbo bag and flexitank shipments continued to face challenges due to weak Chinese demand and elevated container freight and handling costs.

Meanwhile, trading activity on the Iran Mercantile Exchange (IME) remained active, highlighting continued domestic market participation despite ongoing volatility in the export sector.

Overall, Iran’s bitumen market continues to be shaped by geopolitical developments, regulatory challenges, logistics constraints, and cautious international buying, while regional overland exports remain a key source of market support.