WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Jul 30 2023
- Category: News
- Published: Monday, 16 October 2023 09:24
- Written by Super User
- Hits: 87
Last week, the Iranian Mercantile Exchange (IME) witnessed a supply of 148,000 metric tons (MT) of Vacuum Bottom (VB) with a notable increase of 6%. On the demand side, 361,000 MT of VB was registered. In the previous week, the supply rate had increased by 5,000 MT, and all of the supplied VB was sold, resulting in a weekly fluctuation rate of 2.6% to 10.3%. The surge in offers is attributed to higher output volumes from refineries in Tabriz and Shiraz. Particularly, VB from the Tehran refinery saw the most significant in- crease at 10.2%. The ratio between VB’s closing price and IME’s export bitumen reached 93%, indicating a reduced gap between the two. As a result, there are expectations of pos- sible divergence in the upcoming week. The average value of VB in the Free Market was assessed at $298 USD, while its value in the Center of Exchange Dollar reached $355 USD.
In the export market of the Iranian Mercantile Exchange (IME), supplies amounted to approximately 44,000 MT, which was 10,000 MT less than the average of the previous month. This decrease was attributed to halted offers from Arak Pasargad Oil and Jey Oil Drum Bitumen, leading to a reduction in the overall supply. Despite this, there was strong demand, with 76,650 MT of bitumen being registered, surpassing the available supplies. As a result, all of the supplies were traded. Considering the exchange rate between the US Dollar (USD) and the Iranian Rial (IRR) in the free market at the published date, the ne- gotiated equivalent rate for Isfahan Jey Oil Bulk Bitumen was $321 USD. For Bandar Ab- bas Pasargad Oil Bulk Bitumen, the price was $328 USD, and for Drum Bitumen, it was $378 USD. Additionally, the rate for Pars Behin Qeshm Oil was set at $313 USD per MT.
Pasargad Oil Company recently released its financial statement for the first quarter. Ac- cording to the report, the firm achieved sales of 37 trillion IRR, and its net profit amount- ed to 4 trillion IRR. Notably, the company’s export sales reached 142,000 MT, indicat- ing a significant increase of ×2 compared to the previous year. However, domestic sales were 127,000 MT, reflecting a notable decline compared to the same period last year.
During the past week, the financial statements of Isfahan Oil Refinery Company and Bandar Abbas Oil Refinery were made public. Both companies reported a significant de- cline in their net profits. Isfahan Oil Refinery Company stated that the reason for the profit decrease was a reduction in the price difference between crude oil and its refined products. Similarly, Bandar Abbas Oil Refinery attributed the decline in net profit to a reduced gross operating profit margin, which resulted from lower oil product prices.