Bitumen Market Report – Global Overview

Bitumen markets across key trading regions were broadly supported by tight supply conditions, although demand trends remained mixed amid regional variations.

In Asia, export prices from Singapore and South Korea moved higher on constrained supply, as production has yet to fully recover to pre-disruption levels. Spot buying interest was intermittently observed; however, end-user demand across Southeast Asia remained largely subdued.

In Europe, domestic bitumen truck prices strengthened across Germany, France, the Benelux region, and the United Kingdom. The upward movement was underpinned by seasonal demand recovery and firmer feedstock fundamentals, particularly higher high-sulphur fuel oil (HSFO) barge values in Rotterdam, which increased by approximately $40/t month-on-month in May.

In the Mediterranean market, cargo values declined modestly in line with a weekly retreat in crude oil and fuel oil benchmarks. Nevertheless, bitumen cargo premiums against regional HSFO assessments strengthened, reflecting tightening supply conditions and steady improvement in buying interest. Cargo values for West and Southern African destinations softened over the period, while Nigerian domestic truck prices strengthened as suppliers adjusted to recent increases in landed cargo costs.

Singapore supply remained structurally tight, sustaining upward pressure on export prices. Despite occasional spot cargo enquiries and firmer bids from traders, downstream consumption in Southeast Asia remained limited.

Iranian export activity remained largely inactive, as heightened security risks in the Strait of Hormuz and ongoing regional tensions continued to disrupt logistics and constrain buyer participation in forward-loading cargoes.

Global Waterborne Bitumen Market Snapshot

Waterborne bitumen prices remained elevated across most export hubs, supported by constrained supply and firmer refinery economics. Asian and European FOB assessments continued to trade at significantly higher levels than Iranian export indications, highlighting Iran’s position as one of the most competitively priced sources in the global market.

FOB prices in Singapore and Rotterdam were assessed at approximately $588/t and $601/t respectively, while South Korean cargoes traded around $555/t. Mediterranean and European origins, including Spain, Italy and Greece, remained within the $576-581/t range amid seasonal demand and firm feedstock values.

Iranian FOB indications were assessed near $455/t, maintaining a substantial discount to competing export origins. The spread of more than $130/t against Singapore and nearly $150/t against Rotterdam continued to support the attractiveness of Iranian cargoes for buyers across South Asia, East Africa and selected Mediterranean destinations.

Meanwhile, higher freight-adjusted costs from alternative suppliers, including Taiwan, Thailand and European exporters, reinforced Iran’s competitive position despite ongoing logistical and geopolitical challenges in the region.

Overall, the current pricing structure continues to favor Iranian bitumen exports, particularly for cost-sensitive markets where procurement economics remain a key purchasing driver.

Key Market Insight

• Iran FOB: $455/t
• Singapore FOB: $588/t
• Rotterdam FOB: $601/t
• South Korea FOB: $555/t
• Mediterranean Origins: $576-581/t

West Africa Bitumen Market Update

West African bitumen import prices softened during the week as lower Brent crude and weaker Mediterranean HSFO cargo values weighed on outright pricing. However, tightening Mediterranean bitumen supply and improving regional demand supported higher cargo premiums, particularly for Spanish and Ivory Coast-origin material.

Cargo activity into Nigeria remained relatively limited during early June, although deliveries continued into Cameroon, Ghana, Guinea and Gabon. Several vessels were observed discharging part-cargo volumes across the region, while additional shipments from Turkey were directed toward West African destinations.

Market participants also monitored weather developments closely, as heavy rainfall affected several key markets including Nigeria, Ghana, Ivory Coast and Cameroon. Concerns over an earlier-than-usual start to the rainy season may temporarily impact construction activity and bitumen consumption across parts of the region.

Despite softer outright prices, firm cargo premiums and ongoing import requirements indicate that regional demand fundamentals remain broadly supportive heading into the second half of the year.

East Africa Bitumen Market Update

Construction activity remained robust across key East African markets, particularly in Kenya and Uganda, while regional supply continued to face pressure from ongoing disruptions to Middle East Gulf bitumen exports.

Iranian bitumen export assessments from Bandar Abbas were unchanged during the week, with bulk cargoes assessed at $440-470/t FOB and drummed material at $505-540/t FOB. Although lower-priced bulk offers were reported in the market, uncertainty surrounding logistics and shipping availability continued to limit trading activity.

Market participants reported Middle East Gulf FOB offers near $450/t, translating to CFR Mombasa indications around $700/t. However, elevated war-risk concerns, shipping constraints, and stricter international banking compliance requirements continued to complicate transactions involving Gulf-origin cargoes.

Delivered prices across East Africa remained stable, supported by unchanged freight levels from Bandar Abbas and Jebel Ali to Mombasa, Dar es Salaam and Djibouti. As a result, CFR East Africa assessments were maintained at approximately $770-780/t.

Despite logistical challenges, underlying demand in East Africa remained firm, supported by active infrastructure and road construction projects across the region.

East & Central Africa Bitumen Market Update

Bitumen demand remained firm across East and Central Africa, supported by ongoing infrastructure and road construction projects. Kenya and Uganda continued to serve as the region’s primary destinations for both bulk and drummed bitumen imports, with most volumes sourced from the Middle East Gulf.

Logistical challenges persisted across parts of the region, as heightened Ebola-related health controls at border crossings continued to disrupt truck movements into the Democratic Republic of Congo (DRC). These restrictions also affected the flow of bitumen into emerging demand centres such as Rwanda and Burundi.

Regional supply availability improved modestly following the arrival of a long-delayed drummed bitumen shipment at Mombasa, Kenya. However, market participants reported that substantial volumes of drummed bitumen remain stranded at Bandar Abbas and other Middle East Gulf storage locations, including Jebel Ali, amid ongoing geopolitical tensions and trade-related disruptions.

Overall, regional demand fundamentals remained supportive, although supply chain constraints continued to influence market flows and delivery schedules.

South Africa Bitumen Market Update

South African domestic bitumen truck prices remained stable during the week after easing in late May, as increased import competition continued to influence market sentiment.

The resumption of Middle East Gulf cargo shipments to South Africa, following earlier disruptions caused by regional geopolitical tensions, has increased supply availability and reduced upward pressure on local prices. These volumes are once again competing with cargoes originating from the Eastern Mediterranean, which had dominated imports during the period of Gulf supply disruption.

Additional competition has emerged from Pakistani exports, with recent cargo awards indicating a significant pricing advantage compared with Eastern Mediterranean material. The return of Gulf-origin cargoes, combined with growing Pakistani participation, has improved supply diversity and strengthened competition within the South African market.

Recent vessel arrivals from the Middle East Gulf and Turkey further supported market availability, while imported cargoes continued to be discharged through key ports including Durban and Cape Town.

Overall, the South African market remained adequately supplied, with increased import competition helping to stabilise domestic bitumen prices despite ongoing volatility in international markets.

Singapore Bitumen Market Update

Singapore’s bitumen market remained firmly supported by tight supply conditions, as refinery production has yet to recover fully from earlier disruptions. Limited availability of export cargoes continued to push FOB prices higher, while several refiners reportedly reduced allocations to regular buyers and delayed scheduled loadings.

Trading activity was largely driven by supply concerns rather than demand growth. Traders and vessel operators actively sought spot cargoes and raised bids to secure volumes, but sellers remained reluctant to commit additional material amid ongoing shortages.

Despite stronger bid levels, demand from end-users across Southeast Asia remained subdued. Importers in key markets such as Vietnam and Indonesia continued to face weak domestic pricing, reducing the viability of import purchases at current export levels.

Meanwhile, buying interest from China remained limited as seasonal rainfall and flooding risks weighed on construction activity. Concerns regarding feedstock changes and potential impacts on bitumen quality also contributed to cautious purchasing behaviour.

Overall, the Singapore market remained characterized by tight supply, firm export pricing, and restrained downstream demand, creating a widening gap between trader sentiment and end-user purchasing activity.

India Bitumen Market Update

India bitumen market remained largely driven by emergency demand from contractors aiming to complete projects ahead of the monsoon season. Overall consumption stayed below seasonal norms, while tight supply conditions continued to support elevated domestic pricing.

Refinery availability was constrained, as some producers were unable to increase bitumen output due to changes in crude feedstock slates, limiting spot volumes in the market. As a result, import availability also remained restricted.

Logistical disruptions further weighed on trade flows, with several Middle East-origin bulk cargoes reportedly stranded within the region, reducing prompt availability for India. This has led to cautious buying sentiment, particularly for Iranian-origin cargoes amid unclear delivery schedules.

Prompt bulk offers from Iran were indicated around $320/t FOB, but failed to attract bids due to uncertainty in shipment timing. Alternative origins such as Oman were reported at around $450/t FOB, while Southeast Asian offers were assessed near $700/t CFR East Coast India, facing strong resistance from buyers. Asian-origin buying indications were generally reported in the $600–650/t CFR range.

Despite limited activity, a South China-origin cargo was observed en route to Kakinada, reflecting selective spot movements. Overall tight supply conditions continued to underpin domestic imported bulk prices, which remained above INR 80,000/t (≈$842/t) including taxes on the West Coast. Market participants noted that most importers in Mumbai and Mangalore were largely sold out, while availability in Gujarat ports also remained limited.

On the domestic front, state-controlled refiners in Mumbai reduced listed VG30 and VG40 bulk prices by INR 1,070/t for the current fortnight. However, participants indicated that overall availability of VG30 and VG40 remained tight, with limited offers in the market, and VG10 being the primary grade available, albeit with relatively weaker demand.

Iran Bitumen Market Update

Iran’s bitumen export market remained largely subdued, with trade activity constrained by a combination of geopolitical risks, logistical disruptions, and weak regional demand.

Export flows were significantly affected by heightened security concerns in the Strait of Hormuz and ongoing regional tensions, which continued to disrupt shipping routes and deter buyers. At the same time, demand from key South Asian markets softened further as the monsoon season approached, limiting buying interest.

On the supply side, producers faced increasing financial pressure, including cash constraints and limited storage capacity due to weak seaborne demand. Uncertainty over vacuum bottom (VB) feedstock pricing, along with the lack of clarity surrounding Iran–US negotiations, further weighed on forward-selling activity. While some suppliers attempted to reduce offers to stimulate demand, most opted to stay out of the market.

Prompt bulk export indications were reported in the range of $310–320/t FOB Bandar Abbas, but no meaningful buying interest emerged due to uncertainty around delivery timelines. Several vessels were also reported to be stranded at sea, adding to logistical challenges. In addition, isolated indications as low as $300/t FOB Bandar Imam Khomeini (BIK) were heard, though no concluded deals were reported from BIK, Qeshm, or Chabahar ports.

Trade to Pakistan remained relatively stable. Bulk cargoes were reported at around IRR 495,000–498,000/t ex-Isfahan, while drum cargoes were assessed at IRR 625,000–635,000/t ex-works, equivalent to approximately $360–365/t FCA at the Afghanistan border. Some bulk volumes were also concluded at around $410/t FCA Dogubayazit, Turkey.

However, overall demand for drums remained weak, with some traders attempting to redirect volumes via alternative routes such as Mersin or Pakistan. These logistics options remained largely uncompetitive due to higher freight costs and longer transit times. Around 2,000 tonnes of drums were reported sold at $365/t ex-Isfahan for transshipment via Mersin, with resale indications at $550–570/t FOB Mersin.

Exports in jumbo bags and flexitanks also remained limited. Small volumes of jumbo bags were reported sold at $355/t ex-Isfahan for delivery to neighboring countries via road or rail. Indicative FOB Bandar Abbas levels were assessed at $380–390/t for jumbo bags and $375–385/t for flexitanks, although container shortages continued to restrict seaborne exports.

On the domestic exchange, bitumen traded on the Iran Mercantile Exchange (IME) at $442–458/t ex-factory, with total volumes reaching approximately 45,582 tonnes, reflecting continued domestic liquidity despite weak export sentiment.