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 Export Ban

Iran Bitumen News Update
News update for Iran bitumen export ban

Bitumen Prices in May 2018 may increase between 35 to 40 USD/MT

Iran Bitumen Export Ban Lifted

May 2018 News Summary

Over the past month aside from Iran Bitumen Export Ban the following events have influenced both bitumen prices and availability:

  • The Currency crisis in Iran. Iran’s currency lost great value nearly 40% in the free market and 20% officially. The reasons for this historic event are still under great speculation. Some have suggested it could be both political and economic. The Iran Government is working tirelessly to control this devaluation and has deemed all free market rates as “illegal”.
  • Bitumen prices fell a solid 10% which amounts to an average of 30.00 USD/MT. Due to the influx in sales which is estimated to be much more than 100,000 MT or more than the usual amount purchased from each refinery caused both Government refineries Jey Oil and Pasargad oil to go into a form of overhaul. After many years the bitumen business saw a change in sales and profitability. Of course, this was short lived and only enjoyed by a few companies which had purchased their bitumen prior to this event as all new orders were effected by late deliveries which is still ongoing. In other words the bitumen presently available in the market by a few bitumen suppliers is highly likely bitumen which was purchased at least 30 to 60 days ago which is being delivered today. It is estimated that the government refineries are at least 30 days or more behind schedule.
  • The Private bitumen sector also suffered as V.B. was not vastly available and it is reported that it still is not readily available. Therefore, while demand was extremely high for all types of bitumen produced in Iran availability was actually quite low and it still is pending the new price announcement expected in the coming days. It is speculated that bitumen prices will rise due to several factors which include an in influx in sales, fluctuating currency value in Iran and increasing crude oil prices.
  • Admits the difficulties attaining bitumen for export by bitumen exporters and attaining feed to produce bitumen by the private sector, Iran’s respected Government imposed a ban on all bitumen exports. This now lifted ban aims to add new a layer of venting for all bitumen exports. Presently, a new permission must be granted for the export of bitumen. Up to now this applies to all bitumen producers both Government and private. Before becoming more manageable many suppliers were negatively impacted by this sudden restriction. Those who were mostly effected by the temporary restriction in the export of bitumen were bulk bitumen buyers and exporters. Both have suffered a few days of demurrages while awaiting the new procedure for exports.  It has been reported that all bulk bitumen vessels have been allowed to continue their journey.
  • As Iran is about 11 days ahead in its calendar, and bitumen prices are revised each month most sales have stopped pending new bitumen prices and V.B. rates. Let us not forget the confusion in the market on how to calculate the USD value and other currency values against Iran’s currency. The choices are the legally announced 4,200 Tomans as per the Government’s decision or the free market rate which is at least 25% higher an d up to this point deemed counterproductive and illegal.
  • Our company earlier this month invested in the purchase of least 10,000 Metric Tons of Pasargad Oil Embossed bitumen which we will be able to collect in the coming 10 to 14 days.  As per Pasargad Oil’s rule on bitumen pricing we must wait for new bitumen rates to be released before we are actually able to know how much our final cost will be. In other words the bitumen which is not lifted from the Government refinery can only be lifted under its new value. This rule was created to protect both buyers and suppliers from sudden influxes in the bitumen market.

 

The last Bitumen Buzz of the Year 2015 into 2016

The last Bitumen Buzz of the Year 2015 into 2016

The last Bitumen Buzz of the Year 2015 into 2016

The time has come for an end of the year trading round up or rather The last Bitumen Buzz of the Year 2015 . Let’s review some of the highlights from the last decade that took place in the Bitumen Industry and what we can learn from our commerce in 2015 for the upcoming year 2016 and beyond.

Oil prices fell by about 50 percent since this June. Both Supply and demand factors contributed to the sharp drop in oil prices, but excessive output played a more prominent role in this incident. Falling oil prices has created a downward pressure for the Bitumen Industry, with buyers expecting bitumen prices to drop on weekly basis.

Read more