bitumen market review: 2020/02/11
Vacuum Bottom Overview
The price of bitumen would be affected by vacuum bottom price and exchange rates. Vacuum market demand would fluctuate due to unstable mannerisms of market today, which acts as a roller-coaster as Covid-19 has a rise and fall behavior, followed by restrictions, etc. Vacuum bottom in Iran has fallen during the last week in comparison to the previous one, luckily the fee price hasn’t changed.
As the component of vacuum bottom, the market demand of bitumen would change with the change in vacuum bottom sale. However, since bitumen is being mainly exported, the market can be affected by foreign factors as well. One of which is exchange rate. As the exchange rate increases the bitumen price decreases, nonetheless it is not that simple. During the 3rd week of October, exchange rate has decreased about 8%. This would not simply make the bitumen price to raise higher. Meanwhile, as the Belgian bitumen workers have stopped their strike and the US started to merchandise its bitumen again, the price of bitumen decreased all over the world. However it did not fall down in a great deal in the Middle Eastern area. But these acts were quite affective to the world’s market. It is safe to say that bitumen 60/70 FOB prices in Bandar Abbas or even Persian Gulf in general has been increasing during the last week of October. Not only did the market demand increase in this area, but also the prices has gone up slightly.
During the past month there has been a decrease in the number of containers, consequently it hasn’t been easy on exporting companies to book containers in time in Iran. On the other hand, customs’ computer systems have been logged in, ergo customs procedures are being taken place about ten days rather than only be done within two days. These recent problems had been added to Covid-19 restrictions and are affecting merchandise in Iran.