WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Aug 13 2023
- Category: News
- Published: Monday, 16 October 2023 10:05
- Written by Super User
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In previous week, there was a supply of 186,000 (MT) of VB (Vacuum Bottom) in the Iran Mercantile Ex- change (IME), indicating a 4.19% increase compared to the preceding period. Concurrently, demand reached 360,000 MT during the same timeframe. In prior week, the supply rate had expanded by 15,000 MT, and this entire quantity had been successfully sold. The weekly fluctuation rate of VB’s value ranged from -4.1% to 6.4%. These supply-demand dynamics can be attribut- ed in part to heightened output volumes from the Ta- briz and Isfahan refineries. Notably, the Tabriz refinery observed the most significant increase of 6.4% in VB supply. The ratio between the closing price of VB and IME’s export bitumen was noted to be 85%. Turning to pricing, the average value of VB in the Free Market USD was evaluated at $286. Additionally, the value of VB in the Center of Exchange Dollar reached $342.
In the context of the IME’s export market, approx- imately 54,000 metric tons (MT) of supplies were available, which marked an increase of 4,400 MT in comparison to the preceding month’s average. This rise in supply was attributed to offers from Abadan, Arak Pasargad Oil, and Bandar Abbas Pasargad Oil Drum Bitumen. However, despite the increased sup- ply, the total amount of supplies exceeded the regis- tered demand of 50,240 MT, resulting in not all of the offers being traded. Considering the exchange rate between the free market U.S. Dollar (USD) and the Iranian Rial (IRR) on the published date, the negoti- ated equivalent rate for Isfahan Jey Oil Bulk Bitumen was estimated to be in the range of $336 to $339. The price for Bandar Abbas Pasargad Oil Bulk Bitumen was set at $345. Additionally, the rates for Abadan and Arak Pasargad Oil were $311 and $340 respectively.
Pasargad Oil Company has reported a significant boost in its operating profit for the first quarter (Q1) attributed to several key factors. Notably, a substan- tial 27% increase in sales played a pivotal role in driving this growth. Additionally, the company’s de- cision to purchase offset bitumen, along with main- taining a reasonable inventory price, contributed to the overall increase in profitability. Another signifi- cant factor was the substantial 40% rise in sales pric- es, which further augmented the positive financial outcome. The confluence of these factors indicates a well-rounded approach to managing the compa- ny’s operations. The increase in sales is indicative of growing market demand or successful sales strate- gies. Purchasing offset bitumen and managing inven- tory costs efficiently reflect prudent financial manage- ment. Moreover, the implementation of higher sales prices suggests that the company was able to navigate market conditions effectively to maximize revenue.
During the second Iran Bitumen Industry Confer- ence, the head of IRBAS emphasized Iran’s favor- able position in the production of bitumen on both regional and global scales. Additionally, he noted that the export of this product generates an approx- imate value added of $2 billion. The Deputy Min- ister of Roads and Urban Development also joined the conversation, expressing the need to support bitumen producers. He urged the parliament to consider substituting offset bitumen with monetary compensation or credit for producers, aiming to fa- cilitate their operations. Furthermore, Mr. Mir Taj Al-Dini, the Representative of the Islamic Council, revealed that around 200,000 billion Iranian Rials (IRR) were allocated to bitumen. With the inclusion of offset bitumen, the total amount allocated would be 2,000,000 metric tons (MT). However, due to an increase in bitumen prices, this total allocation would be adjusted downward to 1,300,000 MT