WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Aug 27 2023
- Category: News
- Published: Monday, 16 October 2023 11:30
- Written by Super User
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In the past week, a supply of 105,000 metric tons (MT) of VB (Vacuum Bottom) was made available in the IME (Iran Mercantile Exchange) market. This coincided with a demand of 189,000 MT being reg- istered. Comparing this to the prior week, there was a 44% reduction in the supply rate, although the en- tire available quantity was successfully sold. The weekly fluctuation in VB’s price was observed to range from 3.8-% to 0.2-%. The decrease in supply was influenced by halted outputs from several refin- eries including Tehran, Shiraz, Abadan, and Tabriz. This reduction in supply contributed to shifts in the market dynamics. Particularly, the Arak refinery’s VB experienced the most significant decrease at 3.8%. The ratio between the closing price of VB and the IME’s export bitumen stood at 85%. In terms of val- uation, 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 $342.
Supplies in the IME’s export market reached approxi- mately 93,000 metric tons (MT), indicating an increase of 31,300 MT in comparison to the average volume of the preceding month. This rise in supply was a result of contributions from Bandar Abbas Jey Oil, Bandar Abbas, Abadan, and Tabriz Pasargad Oil, collectively leading to a notable augmentation in the overall sup- ply quantity. In response to this heightened supply, there was a recorded demand of 85,100 MT. With de- mand surpassing the available supply, all of the of- fered quantities were successfully traded. Taking into account the prevailing exchange rate between the free market USD and Iranian Rial (IRR), the negotiated equivalent rate for Isfahan Jey Oil Bulk Bitumen was estimated to fall within the range of 322 to 327$. The price for Bandar Abbas Pasargad Oil Bulk Bitumen was set at 328$. Additionally, the prices for Jey Oil and Bandar Abbas Pasargad Oil drum bitumen were estab- lished at 398$ and 383$, respectively. Moreover, the rate for Pars Behin Qeshm Oil stood at 303$ per MT.
Members of the parliament have passed a resolution that compels the Ministry of Petroleum to allocate 200 thousand billion Iranian Rials (IRR) from the re- sources of the National Iranian Oil Company (NIOC) to refineries. Additionally, this allocation is meant to facilitate the supply of Vacuum Bottom (VB) to ex- ecutive organizations that adhere to this legislation.
The enforcement of definite tariffs based on the bud- get law, which had been implemented two weeks ago, has been temporarily stopped by an interim or- der from the Administrative Justice Court. Howev- er, it is important to note that the default collection of 0.5% duties on all products will still continue. In line with the Customs Circular and following the directive dated 15/05/1402 regarding the specif- ic rates of export duties for raw and semi-finished materials, as communicated through communica- tion number 1402220005642852 dated 24/05/1402, the execution of the attached resolution in the men- tioned circular has been ordered to be suspended