Bitumen Warning

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Bitumen Alert!

Iran/Tehran

Don’t be their Next Victim

Recently reports of upsetting outcomes of Road Construction Work which used Mixed Bitumen in countries such as Indonesia, Iraq, and Africa have been emerging. This event has consequently exposed the methods being used by the very few rising rings of unethical suppliers to bring their costs down to below all other genuine suppliers. Their main victims are Chinese and Korean Road and Bridge Construction Companies. Due to demand for very low Bitumen prices from buyer there are many counterfeit groups emerging in today’s Bitumen market who create a Bitumen like product to meet the market’s price demands. This is why the older and legitimate suppliers are finding it more complicated and not possible to contend with them in prices. Although against their desire, unfortunately several companies in order to avoid bankruptcy have also taken this measure and have started to Mix Fuel Oil in their Bitumen as well.

We are here to educate you on what these hand full of smugglers are doing in order to save majorly on their costs while generating a handsome benefit for their circle. Aside from pouring Sand inside of their drums to make their drums heavier they are placing up to 50% Fuel Oil in the base of their drums then packaging the rest with 100% pure NIOC Bitumen.

Some say where SGS inspection in all of this? SGS takes samples from the top, and gives them the SGS certification based on those results and because they fill the base with the Fuel Oil and Sand it is undetectable until the road contractor uses it. , Buyers purchase the lower priced Bitumen not knowing the true mixture inside of their drums and the effects it will have have are not imited to patches across the entire paved road and shrinkage. In fact, what they have sold the end user is not Petroleum Based Bitumen and has little binding power left after the Mix which means the asphalt will not hold together. Many which use equipment to apply the impure bitumen are complaining of clogs in their equipment’s pipes a well.

Because, the cost of Fuel Oil is far less in price than Bitumen in Iran by mixing even 10% to their Bitumen they are actually saving a minimum of 46.00 USD per MT. Imagine them mixing 50% of the drums with Fuel Oil. This will equal an incredible figure from which they will offer a handsome discount to al in the aims of creating confusion to obtain your order.

Naturally, those who Mix for profit can outbid any true supplier at any time they wish. Our estimates in the past had been 20% impurities which would save them 92.00 USD per MT based on the present market rates of 406 to 410.00 USD per MT in Bulk Ex work refinery. However today we are learning that these hand full of suppliers are getting braver and braver each day, and know that their day in court is coming and intend to gather as many sales as possible in the shortest period before too much awareness has been brought onto this matter.

We are obtaining more pictures of disaster jobs as we speak of them in order to reveal them to our clients and Agents worldwide. Our aim is not to create a scare but to establish a common awareness and protect our clients and the name of Iranian Bitumen which is known for its high quality and standards.

If anyone is offering Bitumen at 10.00 USD more or less than a reliable supplier, we can declare it is expected, but when someone offers 30.00 USD, 50.00, or 100.00 USD per MT less than a reliable supplier or more, then they without doubt are doing something else to bring their costs down considerably.

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An average profit margin of a Bitumen supplier is no more than 20.00 USD per MT inclusive of 5.00 USD per MT for unforeseen costs or we add this to the profit margin or deduct it in discounts.  This all depends on the market trends and demand therefore do not be pulled by very large discounts.

We believe that we should not have to battle the people whom we work with, but the people whom we work with, should believe in us through the many logical, available facts and help educate other buyers of the reason prices are at the level which they are in. We would like to state that the people selling at incredible rates are very questionable. The projects which the false bitumen is prepared with last no longer than several months and then begin to fall apart.

Presently our union is gathering more information on such suppliers and confronting them where possible.

Unfortunately, SGS inspection will not break open a new steel drum from the bottom unless there is previous suspicion. With these companies functioning with multiple names even that will be a small deterrent.