WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Sep 03 2023
- Category: News
- Published: Monday, 16 October 2023 11:41
- Written by Super User
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In the past week, the Iran Mercantile Exchange (IME) saw the supply of 187,000 metric tons of Vacuum Bot- tom (VB), with a demand recorded at 295,000 metric tons. This represented an increase in supply compared to the prior week, where the supply rate had surged by 56.51%, resulting in the entire supply being sold. The weekly fluctuation rate for VB prices ranged from 5.8-% to 7.7-%. The higher supply was attributed to outputs from all active refineries, contributing to an uptick in available offers. Significantly, the price of VB from the Isfahan refinery experienced the most notable decrease, dropping by 7.7%. This led to the ratio between VB’s closing price and IME’s export bitumen reaching 82%. In terms of value, the aver- age price of VB in the Free Market was assessed at $267 per metric ton, while the value in the Center of Exchange Dollar reached $320 per metric ton. This data provides valuable insights into the dynamics of the VB market within Iran’s Mercantile Exchange.
In the export market of the Iran Mercantile Exchange (IME), there were approximately 44,000 metric tons (MT) of available supplies, which exceeded the av- erage from the previous month by 25,300 MT. This uptick in supply was influenced by the suspension of offers from Isfahan Jey Oil Drum Bitumen and a decrease in production from Isfahan Jey Oil Bulk Bitumen and Pars Behin Qeshm Oil. Despite the in- creased supply, the recorded demand was 26,900 MT, which fell short of the available supplies. Con- sequently, only part of the offers were traded. The negotiated equivalent rate for Isfahan Jey Oil Bulk Bitumen was estimated to be between 321 and 323 USD, considering the exchange rate between the free market USD and Iranian Rial (IRR) at the time of publication. The prices for Bandar Abbas Pasargad Oil Bulk and Drum Bitumen were set at 328 and 385 USD, respectively. Additionally, Tabriz Pasargad Oil bitumen was priced at 337 USD per barrel. This data provides valuable insights into the dynamics of the bitumen market within the Iran Mercantile Exchange.
The Expediency Discernment Council has rejected the new parliamentary resolution concerning the provision of free bitumen. They have clarified that, based on their recent decision in this matter, the Par- liament should not proceed with the new resolution. In late August, the Parliament had passed an amend- ment to paragraph (1) of the 2023/24 Budget Law, allocating up to 200 thousand billion IRR worth of free bitumen for infrastructure projects to be dis- tributed to various governmental agencies. This amendment stated that, starting from the beginning of the year 2023/24, these agencies would receive monthly allocations of bitumen raw materials (vac- uum bottom) and handle the associated expenses through interagency accounts and the national trea- sury, using the proceeds from the material deliveries.
The one-month performance report of Pasargad Oil Company is now available on Codal. Accord- ing to the report, during the month of Mordad, the company achieved around 68,000 tons in domestic sales and 48,000 tons in exports. These figures in- dicate a notable 35% growth in domestic sales and a modest 11% decline in export sales compared to the previous month. The primary contributor to the sales increase was the rise in PG grade bitumen sales.