WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Oct 15 2023
- Category: News
- Published: Sunday, 22 October 2023 12:53
- Written by Super User
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In the preceding week, a total of 173,000 metric tons of Vacuum Bottom (VB) were offered in the Iran Mer- cantile Exchange (IME). This marked a significant in- crease of 107% compared to the previous week when 5,000 metric tons less were supplied. As a result of this surge in supply and increased demand, all the of- fered VB was successfully traded. The weekly fluc- tuation rate for VB ranged from a decrease of 7.5% to an increase of 3.7%. The surge in supplies was at- tributed to higher outputs from refineries in Tehran, Isfahan, and Abadan. Among the various types of VB, Tabriz VB saw the most significant price increase at 3.7%, contributing to the ratio between the closing price of VB and the IME’s export bitumen reaching 88%. The average value of VB in the Free Market was estimated at $258 per metric ton, while in the Center of Exchange Dollar, it reached $323 per metric ton.
In the Iran Mercantile Exchange’s (IME) export mar- ket, there was a supply of approximately 48,000 metric tons (MT) of bitumen. This supply marked a signifi- cant decrease of 37,000 MT compared to the previous month’s average. The reduced supply was attributed to a decrease in offers from various sources, including Bandar Abbas Jey Oil, Tehran Pasargad Oil, and oth- er suppliers. The demand for this bitumen amounted to 20,500 MT, which was notably less than the total available supplies. As a result, the entire amount of of- fered bitumen was not traded during this period. The fluctuation of prices was influenced by the exchange rate between the free market USD and the Iranian Rial (IRR). At the time of publication, the negotiated equiv- alent rate for Bandar Abbas Jey Oil Bulk Bitumen was set at $315 per metric ton. The prices for Bandar Abbas Pasargad Oil Bulk Bitumen and Drum Bitumen stood at $329 and $380, respectively, while the price for Arak Pasargad Oil Bitumen was $293 per metric ton.
A representative in the Iranian parliament, hailing from Semnan, has revealed a series of improvements in the bitumen supply process to governmental agencies. He went on to elaborate that these chang- es were enacted by the parliament to address con- cerns raised by the Guardian Council regarding the bitumen delivery process for the year 1402. Under the revised text, the Ministry of Oil is mandated to allocate an approximate sum of 200 trillion rials in crude oil from its reserves to the National Iranian Oil Company. This allocation will enable the com- pany to provide executive bodies with monthly sup- plies of raw bitumen, specifically vacuum bottoms, at 50% of the prevailing market price. This imple- mentation commences at the outset of the year 1402.
On the tenth day of deliberations over the Seventh Development Plan for the Islamic Republic of Iran, a significant parliamentary session was held on Tues- day, October 8, 2023. This session was conducted under the leadership of Mohammad Bagher Ghali- baf, the esteemed Speaker of the Parliament. Com- mencing the public session, prior to diving into the intricacies of the Seventh Development Plan, the par- liament members reached a consensus. This consen- sus centered around addressing concerns raised by the Guardian Council and the Supreme Monitoring Council. The proposed amendment pertained to the allocation of free bitumen to executive bodies, aiming to expedite the progress of the nation’s civil projects.
As per the president of the Natural Bitumen Miners Association, there is still no progress in establish- ing the industrial zone for natural asphalt in Gilan Gharb, despite all the emphasis and efforts made.