Jey Oil & Pasargad Oil Embossed & Privately Produced Bitumen Suppliers Iran

Wiki Bitumen

  • Bitumen Quality
  • What is “Mixed Bitumen” also known as Low Quality Bitumen?

    High quality road bitumen is made from Vacuum Bottom also known as VB On the other hand Mixed bitumen or low quality bitumen are both products which partially contain bitumen and are produced from low quality stock-feed which is usually brought in from Iraq also known as Vacuum Residue. This type of bitumen while usable for roofing is not intended for road construction. Using low quality bitumen can result in early road repairs, and road defects.

  • What if a Mixed Bitumen supplier sells me Bitumen at regular rates thus making me believe that they are a genuine supplier?

    Mixed Bitumen supplier’s edge is their Price and therefore they usually cannot compete with a healthy supplier as they are normally not as professional and developed in their Dealings.

     

  • How can I determine if my Bitumen supplier is selling me the right Bitumen which is not blended?

    There is no full proof way of learning the intentions of your business partners unless you have dealt with them or know someone who successfully has in the past, however studying their past performance records and comparing their Bitumen specification with an emphasis on the Ductility and Viscosity of their Bitumen is a good starting point. If the documents they have presented are not firsthand you may want to ask for the original copy and then verify it with the inspection company which has provided it. (Usually SGS or other International  Inspection companies which have Bitumen laboratory in Iran)

    If you would like their contact details please let us know.

  • How can I tell if I am buying Mixed Bitumen?

    As the bitumen market is a high competitive market profit margins are limited. A good starting point to check if you’re buying compromised bitumen is the price of the Bitumen you want to buy. If the price of the Bitumen you are purchasing is 3% to  5% below the average price it’s advisable to take a closer look at the offer and learn why there is a difference.

  • Why are your Bitumen prices higher than others at times?

    On many instances bitumen brokers will offer an exceptional bitumen price to attract buyers and create an impression of having the best prices in the market. Some suppliers do not mention certain costs. Our bitumen includes Terminal Handing Charge THC and Inspection. The cost of these two items can total 7.00USD/MT.

    Other times we may post slightly a higher price to maintain broker fees which are included in our posted prices.

    Next time this occurs ask us why and we will gladly tell you.

     

  • What is a Mixed bitumen suppliers profit margin?

    While maintaining an attractive bitumen price, we presume that a mixed bitumen suppliers Profit Margin will be at minimum 2 to 3 times that of high quality petroleum based road bitumen supplier.

  • What are the differences in price between low quality bitumen and high quality bitumen?

    Low quality bitumen suppliers normally maintain a price difference of 10.00USD/MT less than a healthy high quality bitumen producer and mainly export to countries such as India which demand lower prices. In the past some of this low quality produce has found its way to Bangladesh and Africa.

    Studying the past performance records of a bitumen supplier and comparing their Bitumen specification and comparing it with ASTM standards with an emphasis on the Ductility and Viscosity is a good starting point. If the documents they have presented are not firsthand you may want to ask for the original copy and then verify it with the inspection company which has provided it. Requesting shipping record(s) such as a Bill of lading is also encouraged.

  • Bitumen Pricing
  • How much does a Bitumen supplier profit?

    You may find it interesting that a Bitumen Supplier may profit 3 to 6% and usually not the latter.

  • What is discounts when we buy bitumen and how much it would be?

    Bitumen discounts are available when you buy bitumen from Iran Bitumen IRB and they are usually derived from the profit which is applied to our “ Capital in Use”  which in essence is the collective  interest accumulated onto our financial investment. In other words the money involved with your order  has a certain  base value which Iranian banks apply to it.

    Imagine 15.00 USD per metric ton is applied for Capital in use for the duration of your order from the moment it is taken to the time it is returned to us, but instead of us using our own capital , when you exercise yours and pay us 100% TT  in advance; in this event you can avoid that added 15.00 USD per metric ton finance fee which is applied to our quoted price to you.

    The same will happen if you pay 50% or even 20% in advance. As the risks of a bitumen supplier are genuinely reduced so will their bitumen prices. With currency value changing worldwide no wonder the expectations on the return investment of a bitumen exporter are reduced when a bitumen buyer pays part or full cash in advance.

  • Why do Bitumen prices vary from one bitumen supplier to another?

    Traditionally Bitumen was produced by the Government Refineries Jey oil and Pasargad oil refinery, however in the past few years the Government has provided Minnie Refineries such as ours with Vacuum Bottom which is also referred to as V.B. which is the main raw material used in produce Bitumen. When Buying Bitumen from private refineries the price you pay for bitumen will be lower in comparison. In addition, when the market is slow to  regain their capital in use  avoid interest charges, they may sell their ready cargo at  a more attractive rate or even cost. This is usually for 500 MT to 2,000 MT and not all will be able to take advantage of such offers.

  • Why are your Bitumen prices higher than others at times?

    As the Profit margin of Bitumen suppliers is usually in the same range, this becomes the Million Dollar question which when challenged properly one can learn that in fact we as a norm are not higher in essence for what is being provided. For example, a Bitumen supplier or Bitumen Broker who has not had much luck selling Bitumen who knows is being used as a point of reference for Bitumen prices may offer false prices with a short validity to create confusion or suspicion towards another petrochemical supplier.

  • Are your bitumen prices negotiable?

    Bitumen prices are usually negotiable to an extent and they vary from market to market. We also provide discounts for payment made in Telegraphic Transfer also known as T/T or cash payment. In addition the more advance payment you pay the better our rates will become. LC at sight prices are higher than T/T offers as for L/C we use 100% of our own capital.

  • Bitumen Shipping
  • What is Cross Stuffing mean?

    The term cross stuffing is a term which is used in the shipping industry for goods which are delivered to a given port and then emptied from their existing containers and re-stuffed into other shipping liner’s containers and then reshipped to their given destination. Cross stuffing is usually exercised when there are no direct shipments to a desired port.

  • Is Cross Stuffing Expensive?

    Cross stuffing can be expensive. The average cost is 60.00USD per metric ton. This measure is applied when there are not direct vessels or transshipment from one port to another.

  • Can you ship bitumen via Dubai in the UAE?

    Yes we can send bitumen via UAE, Dubai bitumen is sold regularly by us via our UAE company via UAE port such as "Jebel Ali" this form of sale is specially for customers which cannot be reached from our port.

  • How many 180 kg drums and 150 kg drums can fit in a 20 feet container?

    To answer the question how many new steel drums can fit into a 20 feet container of either 180 Kg or 150 Kg we must state that 110 new steel drums weighing 180 kg totaling 20 metric tons net can fit in a 20 feet container, however, in the event 150Kg drums are used  which are usually for Chittagong Bangladesh’s bitumen market an average of 16.5 metric tons can be stuffed in it.

  • How many metric tons of Bitumen can fit in a 20 Feet Container?

    If 180Kg drums are stuffed in a 20 Feet Container 20 Metric Tons can fit in a 20 feet container

  • How many New Steel Drums can fit in a 40 Feet Container?

    The Shipping lines do not allow more than 25 metric tons in a 40 feet container totaling 135 drums.

  • Payments
  • What are the payment terms for road bitumen?

    Payment for Road Bitumen can be made via T/T or Letter of Credit to UAE.

  • Can I pay for my Bitumen after it arrives to my destination Port?

    This all depends on the nature of your relationship with your supplier; however Bitumen suppliers tend to sell Bitumen on a FOB or CFR terms so that they can quickly reinvest their capital into fulfilling other Bitumen orders.

  • Commission
  • How can be certain you will not deal directly with the buyers I introduce?

    We take great pride in our ethics and that of our carefully selected staff. Under no condition other than Force Majeure in the event that we cannot either locate you or receive the necessary limited commitment from you toward resolving any potential obstacles in supplying or receiving our payment from your customer we will speak to your buyer directly. Once you are available again in the dealings all negotiations will be done through you once again as we cannot spend the man hours to deal with your buyers on your behalf and do not practice circumvention.

  • I know you have a good cooperation with your brokers but I still want something in writing from you that I will be paid my commission once the deal has been completed. Is this possible?

    Yes, we can provide our Bitumen brokers with a promise letter for their Commission ensuring to them in writing that their earnings are safe.

  • Are you willing to sign an NCNDA with me?

    Signing an NCNDA is time consuming and it does not necessarily result in sales and therefore we prefer to work with those whom have a trusting nature towards us and are willing to develop their relationship with us through interactions rather than entering into an NCNDA agreement right in the beginning. The majority of brokers which we work with do not have any agreements with us and rely on our word and our reputation.

  • Can I become your Bitumen broker?

    Anyone with high morals and ethics is welcome to join the IRB Family and build a relationship and cooperation with us. Just like any other relationship it will take time to build mutual trust.

  • Can a Bitumen Supplier circumvent a Bitumen broker?

    At Iran bitumen we don’t circumvent anyone. In addition it all depends on the nature and reputation of the Bitumen exporter. With that said,  it is not unheard of, however any smart businessman will preserve their resources and should not burn the bridges behind them.

  • Can I add commission to the given price of my Bitumen supplier?

    Traditionally, this has always been the case, bitumen brokers add a fair margin onto the bitumen supplier’s bitumen prices and in turn after the deal has materialized the supplier of Bitumen transfers the necessary amount to the bitumen broker?