WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Oct 01 2023
- Category: News
- Published: Monday, 16 October 2023 12:29
- Written by Super User
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During the past week, the Iran Mercantile Exchange (IME) reported a supply of 177,000 metric tons (MT) of VB (bitumen), while demand registered stood at 171,000 MT. This represented a notable 37% decrease in demand compared to the previous week. The sup- ply rate had reduced by 13,000 MT in the prior week, and as a result, not all the supplied VB was sold. The weekly fluctuation in VB prices ranged from -2.5% to 3.7%. This decrease in demand can be attributed to reduced output from refineries and halted offers from the Arak refinery. Tehran VB experienced the most significant price increase at 3.7%, and the ratio between VB’s closing price and IME’s export bitumen reached 92%. The average value of VB in the Free Market was assessed at $285 USD, while the value in the Center of Exchange Dollar reached $341 USD.
In the export market of the Iran Mercantile Exchange (IME), the available supplies amounted to approxi- mately 92,000 metric tons (MT), representing a no- table increase of 14,500 MT compared to the previ- ous month’s average. However, this uptick in supply coincided with reduced offers from all participating suppliers, compounded by a production halt from Bandar Abbas Jey Oil. Despite the increase in avail- able supply, the total demand registered for bitumen reached 141,000 MT, falling short of the surplus supply, which ultimately resulted in untraded offers. When taking into account the prevailing exchange rate of the US Dollar (USD) to Iranian Rial (IRR), the negotiated equivalent rates for Isfahan Jey Oil Bulk Bitumen spanned from $291 to $328 USD. Isfahan Jey Oil Bulk Bitumen was priced at $366 USD, while the rate for Bandar Abbas Pasargad Oil Bulk Bitu- men stood at $347 USD. Furthermore, bitumen prices for Tehran, Abadan, Tabriz, and Arak Pasargad Oil ranged from $305 to $325 USD. Pars Behin Qeshm Oil’s bitumen rate was fixed at $310 USD per MT.
In the past week, during the annual assembly of the Iranian Asphalt Association held on the 7th of Mehr month (September), the following in-dividuals were elected for a two-year term: 1. Mr. Davood Mohammadi 2. Mr. Sajad Mazlo- umi 3. Mr. Mir Jalal Seyed Jalali 4. Mr. Saeed Ma’marian 5. Mr. Amin Fallah 6. Mr. Yousef Hadi Siahrudi 7. Mr. Seyed Mohammad Mousavi
The President of the Trade Development Organiza- tion has noted that certain companies are presently importing their own vehicles by acquiring export currency through product sales, such as bitumen or dried fruits. Consequently, there is no restriction in place for such actions. He has also emphasized the need for the Central Bank to expedite the approval process for currency allocation, given the directive from the First Vice President to allocate one bil- lion euros, as stipulated in the Cabinet’s resolution.
The Bandar Abbas Oil Refining Company has released an official statement regarding a recent fire incident at its refinery. According to the statement, on the eve- ning of Friday, September 22nd, there was an incident involving the ignition of gases released during the cleaning process near the diesel compressor. Prompt action was taken to control the situation, and the fire was quickly extinguished. As a result, all operation- al units within the refinery are now fully operational and functioning as they were prior to the incident.
In the month of September, the Pasargad Oil Compa- ny achieved a production milestone. They manufac- tured 63,000 tons of domestic asphalt and an impres- sive 62,000 tons of asphalt for export. This demon- strates a 6% reduction in domestic asphalt produc- tion compared to the previous month, while export asphalt production surged by a remarkable 31%.