WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Sep 18 2023
- Category: News
- Published: Monday, 16 October 2023 12:12
- Written by Super User
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In the latest week, the Iran Mercantile Exchange (IME) witnessed the supply of 188,000 metric tons of Vacuum Bottom (VB), marking a notable increase of 27,000 metric tons compared to the prior week. All the supplied VB found buyers, and throughout the week, the prices experienced fluctuations rang- ing from -4.2% to 6.8%. This surge in supply can be attributed to increased production from all refin- eries. The Tabriz refinery’s VB recorded the most significant price increase, surging by 6.8%. The clos- ing price of VB relative to IME’s export bitumen reached a level of 90%. In terms of valuation, VB averaged $277 in the Free Market USD, with its val- ue on the Center of Exchange Dollar reaching $332.
In the IME’s export market, approximately 57,000 met- ric tons of bitumen were available, which was slight- ly less than the preceding month’s average by 7,100 metric tons. This reduction in supplies was attributed to fewer offers from suppliers. However, despite the decrease in supply, the total amount of outputs was fully traded. Demand in this market reached 64,050 metric tons, surpassing the available supplies. The negotiated equivalent rates for Isfahan Jey Oil Bulk Bitumen were in the range of 317$ to 347$. Mean- while, the prices for Bandar Abbas Pasargad Oil Bulk and Drum Bitumen were 319$ and 378$, respective- ly. Additionally, Arak Pasargad Oil offered Bulk and Drum Bitumen at rates of 346$ and 386$, with Arak Pasargad oil priced at 321$. Pars Behin Qeshm Oil’s bitumen was available at a rate of 281$ per barrel.
In a communication dated June 22, 1402, the Iran Commodity Exchange has officially notified a modification in the advance payment rate for the procurement of vacuum bottoms. Effective from June 26, 1402, it has been decreed that the ad- vance payment rate for purchasing vacuum bot- toms on the Iran Commodity Exchange will stand at 10%, pending any subsequent updates. Prior to this adjustment, the advance payment rate for vac- uum bottoms acquisition was established at 20%.
In early September, the Union of Oil, Gas, and Pet- rochemical Product Exporters approached the Cen- tral Task Force for Combating Smuggling of Goods and Currency with a request. They sought favor- able conditions that would allow manufacturers to transport their export shipments of various oils and lubricants using flexi-tanks. The idea was to enable these producers to move their export cargo from the factory to the customs office using tanker trucks. Once the tanker was sealed at the customs office, these trucks would then proceed to the export ports. There, under the watchful eye of customs officials, the cargo in these tanks would be transferred to flexi- tanks. In response to this proposal, the Task Force for Combating Smuggling of Goods and Currency elaborated on the reasons behind the prohibition of transporting oil products through flexi-tanks. Ac- cording to their explanation, customs sampling is performed on the final container of the cargo. Due to concerns about potential tampering or confisca- tion during this process, it was determined that this procedure is not feasible. Consequently, a meet- ing will be convened at the customs office, involv- ing stakeholders, to delve further into this matter.