WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Oct 08 2023
- Category: News
- Published: Sunday, 22 October 2023 12:33
- Written by Super User
- Hits: 101
During the previous week, the Iran Mercantile Ex- change (IME) reported a total supply of 168,000 metric tons (MT) of VB (bitumen), with demand registering at 123,000 MT. Notably, this marked a 28% decrease in demand compared to the prior week, coinciding with a 9,000 MT reduction in the supply rate. Consequently, not all of the available bitumen found buyers, contrib- uting to a weekly fluctuation rate in VB prices spanning from -3.3% to -6.5%. The drop in supply was primari- ly attributed to reduced outputs from select refineries. Among them, Tabriz VB saw the most significant de- cline, plunging by 6.5%, while the ratio between VB’s closing price and IME’s export bitumen price reached 89%. The average value of VB in the Free Market was evaluated at $276 per MT, whereas its valuation in the Center of Exchange Dollar reached $337 per MT.
In the Iran Mercantile Exchange’s (IME) export market, the available bitumen supply totaled around 77,000 metric tons (MT). This figure marked a de- crease of 1,700 MT in comparison to the preced- ing month’s average. The reduction in supply was primarily attributed to decreased offering volumes from select suppliers and production halts from Isfa- han Jey Oil Drum Bitumen, Bandar Abbas Pasargad Oil, and Pars Behin Qeshm Oil. However, despite these supplies, only 67,700 MT of bitumen demand were registered. This demand volume fell short of the available supply, resulting in no trading of the surplus. It is worth noting that considering the pre- vailing free-market exchange rate of USD to IRR at the publication date, the negotiated equivalent rates for Isfahan Jey Oil Bulk Bitumen were established at $297 per MT. Meanwhile, Bandar Abbas Pasargad Oil Bulk Bitumen was priced at $344 per MT. Fur- thermore, bitumen prices from Abadan, Tabriz, and Arak Pasargad Oil ranged between $302 and $336 per MT, reflecting the ongoing dynamics of the market.
The CEO of Iran Urban Regeneration Corporation has announced that, in compliance with the municipal organization’s directives regarding asphalt expendi- ture, a minimum of 25% of the asphalt consumption for the fiscal years 1402 and 1403 will be dedicated to addressing the needs of inefficient urban areas. Furthermore, during this meeting, a resolution was reached for the Iran Urban Regeneration Corpora- tion to furnish Geographic Information System (GIS) data pertaining to these inefficient urban areas to municipal authorities and rural districts nationwide.
The Supreme Oversight Council has assumed the role previously held by the Oversight Commission with- in the Assembly. The Chairman of the Construction Commission has clarified that this new configuration and set of regulations grant voting rights to both the heads of branches, the specialized commission, and executive authorities. This restructured Supreme Oversight Council will now be responsible for mak- ing decisions related to the allocation of free bitumen.
The Iran Trade Development Organization has de- cided to extend the deadline for meeting foreign ex- change commitments related to the year 1401 until the end of the current year. In a letter dated 09/07/1402, the organization communicated: “In light of the reso- lutions made by the Foreign Exchange Return Work- ing Group, we hereby announce the extension of the deadline for exporters to return foreign exchange earned from exports in the year 1401 until the con- clusion of the current year. It’s essential to note that this extension does not grant any tax exemptions.”