WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Sep 10 2023
- Category: News
- Published: Monday, 16 October 2023 11:53
- Written by Super User
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In the previous week, there was a supply of 160,000 metric tons (MT) of VB in the IME, and the regis- tered demand was 280,000 MT. This represents a decrease in supply compared to the prior week, with a reduction of 27,000 MT. As a result, all of the available supply was sold, leading to a weekly fluc- tuation rate for VB ranging from -7.1% to 10.9%. The reduction in supply was primarily due to halt- ed production from Shiraz and Abadan refineries. Notably, VB from the Arak refinery saw the highest increase at 10.9%, and the ratio between VB’s clos- ing price and IME’s export bitumen price reached 95%. The average value of VB in the Free Market USD was assessed at $285. Additionally, the value of VB in the Center of Exchange Dollar reached $341.
In the IME’s export market, where approximately 66,500 metric tons (MT) of supplies were available, exceeding the previous month’s average by 3,700 MT, various bitumen types were offered. The prices for these bitumen types were as follows: Isfahan Jey Oil Bulk Bitumen was priced at around $310, con- sidering the free market USD to IRR exchange rate, while Bandar Abbas Pasargad Oil Bulk Bitumen was available at $319 per MT. Additionally, Bandar Ab- bas Pasargad Oil Drum Bitumen was priced at $378 per MT, Arak Pasargad Oil Bitumen at $296 per MT, and Pars Behin Qeshm Oil offered bitumen at $295 per barrel. Despite the increased supplies, demand fell short, and not all offered quantities were traded.
In correspondence with the Ministry of Oil, the Cen- tral Bank has conveyed its decision to utilize the ex- change rate set by the Central Foreign Exchange and Gold Center as the benchmark rate for pricing feed- stock and establishing base prices for commodities traded on the commodity exchange by oil refining and petrochemical companies. This directive aligns with the guidelines outlined in letter number 591/1402, dated 09/01/1402, which specifically addresses the calculation of exchange rates for these purposes.
An important memorandum of understanding (MoU) has been officially inked between the Shiraz Oil Re- fining Company and Exir Novin Asia. This significant agreement aims to address the sulfur reduction issue within the furnace oil production process at the Shi- raz refinery. The primary goal here is to substantially reduce the sulfur content in the furnace oil produced at this facility, which ultimately enhances the over- all quality of the petroleum products manufactured there. Notably, the CEO of the National Iranian Oil Refining and Distribution Company had recently her- alded the country’s achievement of advanced techni- cal expertise in the field of sulfur reduction within the realm of refining industries. This MoU marks a strate- gic step towards realizing this technological prowess in practical applications within the Shiraz refinery