iran bitumen price

Instability in Iran’s bitumen market is reaching 2 months

Instability in Iran’s bitumen market is reaching 2 months

Iran’s currency in comparison to the USD has reached a historic all-time low. It has lost at least 100% of its worth in most of the world’s none governmental vendors.  Despite great effort by Iran’s respected Governing body to maintain its value at 4,200.00 Toman per 1.00 USD all across the board, today we can witness 1.00 USD being exchanged at 10,000.00 Toman. This conflict in value has caused a rift in Iran’s bitumen market.  At the present Exporters are required to return the greater portion of their export revenue back into the Nation at Government approved exchange rates. This is in conflict with most of the importers expectations for competitive bitumen rates who depend on free market USD exchange rates to purchase their goods from Iran.

Iran’s respected Government and the business community are continuously working together to explore news ways to find workable solutions towards the new challenges caused by the unexpectedly rapid depreciation of our currency.

As a consequence of the Economic pressures imposed by foreign powers on Iran, many of the Shipping lines which operated from Iran have either momentarily stopped their operations or are preparing to do so.  Of course, Iran’s shipping line IRSL is still active along with a few other shipping lines.

Many of the bitumen producers in Iran have either momentarily stopped their bitumen exports or have cancelled their pending orders. Presently we are taking bitumen inquiries on a case by case basis as both procuring bitumen and shipping it have become a challenge.

We look forward to a prompt resolution to all of this great Nation’s challenges and are optimistic and confident that it will overcome them and triumph over them.

If you have a bitumen inquiry or require relevant products from Iran’s petrochemical market please don’t hesitate to contact us.

Iran bitumen prices remain

Bitumen Prices remain stable

Bitumen Prices remain stable ~   January 22nd 2018

Bitumen prices remained stable despite a 35,000 Toman bitumen price increase in the Stock Exchange. 35,000 Tomans is equal to 8.00 USD/MT which is passed onto consumers which import bitumen. However, because USD value in Iran is at a historic high, this has caused the price increase to be seemingly ineffective. Meaning the conversion of USD into Iran’s local currency has neutralized the much dredded price increase in bitumen value.  It is easy to view this price increase for raw materials also known as Vacuum Bottom as an adjustment to maintain the same level prices as the previous month.

 

 

Bitumen News 2018

Iran bitumnen prices and news

Iran Bitumen Prices November 22

Bitumen prices in Iran take a turn for the worst

Raw material to produce high quality bitumen in Iran increased bitumen prices 67.00 USD/MT in the stock exchange.

Let us examine some of the causes:

One of the reasons bitumen prices in Iran have increased is due to the increasing crude oil prices. Another factor bitumen prices in Iran have acended is the Government’s new policy for its new exchange rate against the USD. In the past 5 years or so Iran’s currency has lost nearly 400 % value against the USD. The Government in aims to control inflation on imported goods had provided certain products such as food and medicine a more affordable exchange rate. It also provided certain other less crucial imported needs of the nation a more affordable exchange rate. The government rate had always been less than that of the free market. Overall there was a decent gap between the Government’s exchange rates and that of the free market. With that virtually out of the way now the Government has decided to close the gap and increase it’s  exchange rate to that of the free market. This new policy will impact nearly all aspects of Iran’s imported and exported product rates. Presently there will be a minimum of 10% difference in the value of purchasing or converting Government USD to that of the free market. For example, when in the past we bought bitumen or raw feed we paid the government in USD based on the exchange rates implemented by the government.  Therefore by using this advantage we were able to discount our bitumen prices for consumers. This is because we sold bitumen at the free market exchange rates but paid the government a lower exchange rate. But now we cannot provide this incentive and pass it onto our customers and we will look towards our officials to balance the scales and bring Irab bitumen prices within a more affordable range.

Will there be a reverse in Iran bitumen price policy?

in the pastwhen such an event occurred the  Government lowered the prices of Vacuum Bottom VB the raw material needed to produce bitumen which brought back bitumen prices to a managable and predictable price range.  If Iran’s bitumen industry would like to compete in the international market which we are certain it does it will create the necessary balance.With that said, Iran’s prices for bitumen is one of the most affordable bitumen available in the market.