High quality road bitumen prices remain in the proximity of 310 to 320 USD/MT FOB Bandar Abbas depending on your order quantity and mode of payment.
It is noteworthy to mention again and again that not all bitumen produced and offered are useable for road construction. The prices which you may be experiencing in the 280.00 USD/MT levels are in almost all cases blended with none essential product to reduce the cost. Those who fall victim to such qualities share the blame as they close their eyes to the realities of the bitumen market and rely on information from emerging bitumen suppliers rather than suppliers with an extensive export history. We urge bitumen buyers to educate themselves on cheap priced bitumen by clicking on the following link: http://www.iran-bitumen.com/not-all-bitumen-qualities-are-suitable-for-road-construction/ for additional up to date information please contact us and we will send you a more descriptive Bitumen Warning.
As we discussed last month in January, 2019 there was a shortage of containers, IRSL Iran’s largest shipping company has begun giving bookings and containers for shipments now in the month of February. Of course, things are not back to normal as of yet as we still rely on foreign shipping lines for most of our distant destinations; however overall the shipping condition in Iran has improved.
Bitumen Sales during Iran’s Holidays
Iran customarily celebrates Nowruz (meaning new day) the first day of spring which usually falls on March 21st. Traditionally government offices are closed for one week post this date; however private businesses tend to stop functioning a few days before Iran’s near year festivities and may not be fully function-able until the first week of April.
Jey Oil output
Jey Oil Refinery is one of Iran’s two Government refineries. To substitute our own privately produced supply line organizations such as ours usually supply at least from one Government refinery as well. This is mainly due to unique demand for this brand and on some occasions the price reduction and availability make it more attractive than producing bitumen. However; that is not always the case, not only is Jey Oil brand usually 10 USD to 20.00 USD/MT more expensive than privately produced bitumen, but for the last 70 days its output to most of its customers has been next to none. If you don’t mind the wait and the open agreement for price they maintain it’s still a good choice. The open agreement with regards to price in this occasion refers to the price of this brand which fluctuates based on crude oil prices. If the bitumen which you have secured from this source are not picked up within the Iranian calendar month no matter if it was not available by the refinery itself normally the new value takes effect. (as soon as Jey Oil Refinery is back to normal we will be offering this brand again soon)
Invest in bitumen production
Ever since stock feed to produce bitumen named Vacuum Bottom became available in the free market dozens of small bitumen factories have emerged. From these many have not been successful due to an array of reasons. One of the main reasons is finances and the other is perhaps credibility amongst buyers. Unfortunately once a bitumen producer starts mixing bitumen with other products to reduce the cost of their production, they are identified and labeled by fellow producers as “Mixed bitumen suppliers” and they usually focus on India or Pakistan’s bitumen markets where demand for such products are incredibly high. In the recent past this lower quality which at times is a total loss for the consumer who aims at using it for road construction has worked its way into Bangladesh’s market. In addition, many new bitumen importers also fall victim to such blended qualities as the pricing is more attractive. Despite, these few mixing plants the majority of small producers remain a safe choice and require investment for feed to function. If you would like to invest in Iran’s bitumen industry please ask us for present investment opportunities in this field.