Argus Bitumen
Europe, Africa, Middle East and Asia-Pacific prices and commentary
Incorporating Argus Asphalt Report
Issue 20-26
Summary
prICES
Bitumen prices continued to be well-supported by tight
supply and firmer demand, with prices rising in Singapore as
well as in the Mediterranean.
Northwest European construction activity remained
buoyant, drawing rising bitumen volumes and pushing some
prices higher, ahead of monthly talks between buyers and
sellers for July volumes.
Mediterranean bitumen supply was increasingly tight, lifting cargo premiums to high-sulphur fuel oil (HSFO) cargoes,
while crude and HSFO values themselves were also up on the
week.
Freight rates in the Mediterranean were assessed higher
thanks to a narrow pool of vessels.
Asia-Pacific prices continued to remain firm on the back
of steady demand across southeast Asia.
Demand remains lukewarm in China because of wet
weather and high inventories.
Trade in the Mideast Gulf remained steady, although an
increase in feedstock prices weighed against weakness in the
Iranian rial, negating any gains for export prices.
Cargo prices into west African markets rose sharply on
tightening bitumen supply, although activity levels remained
generally low, with a few exceptions. The Nigerian market
remained subdued as the rainy season started.
Rotterdam domestic v HSFO barges
500
Rotterdam domestic
$/t
Bitumen prices at key locations, 20-26 Jun
Low
High
±
Mediterranean
265.65
270.65
+15.68
Rotterdam
292.05
296.05
+19.95
Singapore
310.00
320.00
+10.00
South Korea
285.00
295.00
+7.50
Mideast Gulf
175.00
210.00
nc
Export cargo prices fob
Delivered cargo prices cfr
North Africa
Alexandria, bulk
307
317
+18.00
East Africa
Mombasa, drum
293
303
nc
West Africa
Lagos, bulk
384
394
+18.00
313
378
+3.00
East China coast
Domestic prices
Antwerp
ex-works
315
332
+6.00
Southern Germany
ex-works
304
315
+6.00
Hungary
ex-works
287
298
+6.00
Italy
ex-works inc tax
304
315
+11.50
Indonesia
ex-works
433
433
-3.00
Mumbai
bulk
277
304
+1.00
$/t
HSFO
contents
400
300
Key bitumen prices
1
Map of waterborne bitumen prices
2
Northwest and central Europe
200
3-5
Mediterranean6-8
Sub-Saharan Africa 100
0
11 Oct
| Friday 26 June 2020
9-11
Asia-Pacific and Middle East
Vessel tracking indications
10 Jan
3 Apr
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
26 Jun
Bitumen news
12-17
18
19-21
Available on the Argus Publications App
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Waterborne BITUMEN prices, fob
Rotterdam
Italy
$294/t
$264/t
Greece
Spain
$279/t
$274/t
South Korea
$290/t
Taiwan
$306/t
Iran
$175/t
Thailand
Bahrain
Ivory Coast
$315/t
$210/t
$364/t
Singapore
$315/t
Cargo Flows
The UK showed signs of increased cargo demand, with
several vessels discharging into terminals across the region,
helped by a recent relaxation of coronavirus restrictions.
The 6,189 dwt Iver Blessing loaded a cargo from
Klaipeda, Lithuania, for discharge into a Thames terminal
on 25 June, the 4,531 dwt Stella Maris loaded a cargo from
Delfzijl also for discharge into a Thames terminal by 26
June, while the 6,314 dwt Bitflower loaded a cargo from
Rotterdam for discharge into Eastham, UK.
Waterborne markets, differential to HSFO
150
Rotterdam
Italy
Ivory Coast
$/t
Spain
Greece
A cross-Atlantic arbitrage cargo coming from the 60,000t
storage terminal at Cadiz, Spain, and loaded aboard the
14,911 dwt The Amigo, is expected to arrive at the US east
coast port of Baltimore, Maryland, by 7 July.
Europe and Africa cargo export differentials to crude
Differential to
Ice Brent $/t
Differential to
Ice Brent $/bl
±
-19.51
6.02
2.39
Spain
-39.41
2.79
1.89
Italy
-49.41
1.17
1.48
Rotterdam, Netherlands
Greece
-34.41
3.60
1.89
Albania
-66.91
-1.67
1.89
Ivory Coast
50.59
17.38
1.89
Bitumen conversion factor t/bl 6.17
Ice Brent conversion bl/t 7.53
Europe and Africa cargo export differentials to HSFO
50
0
19 Jul 19
8 Nov 19
6 Mar 20
26 Jun 20
High
Rotterdam, Netherlands
+63
+67
+8
Spain
+50
+55
+8
Italy
+40
+45
+5
Greece
+55
+60
+8
Albania
+23
+27
+8
+140
+145
+8
Ivory Coast
.
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
Issue Ref: 380289
$/t
Low
100
Page 2 of 21
±
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Northwest and Central Europe market commentary
Summary
Construction activity remained buoyant across the region,
drawing rising bitumen volumes and pressuring some prices
higher ahead of monthly talks between buyers and sellers.
Domestic prices were steady to firmer, with Benelux, UK,
Germany and Romania all indicated firmer ahead of monthly
price talks that are expected to produce hefty gains for July
supplies to reflect higher crude and high-sulphur fuel oil
(HSFO) gains in June versus May levels.
Cargo prices were up sharply during the week ending 26
June, reflecting strong gains in fob Rotterdam HSFO barges
as well as a $7-8/t rise in assessed bitumen cargo premiums
to fuel oil levels, with those premiums reaching the $63-65/t
fob range.
Regional freight rates were also assessed firmer on
routes into Thames terminals, reflecting increased demand
for tankers in both northwest Europe and the Mediterranean. Most routes to Thames were assessed $1-2/t firmer,
with Rotterdam to Thames rising to the $20-23/t range. The
Klaipeda-Thames route was assessed $2/t up at $40-44/t.
UK/Ireland
Construction activity in the UK and Ireland continued to rise,
drawing rising bitumen requirements from both refineries
and in the shape of import cargoes.
Domestic rice assessments were up by £15/t at £250-260/
t ex-works and £265-275/t delivered into southern England
customers. The gains in part reflected rising crude and fuel
oil prices that are used in domestic price formulae. Although
many such deals see their prices revised on a monthly basis,
a sharp rise in import cargo prices also played a part in
pushing up assessed values. Some sales into domestic buyers
were indicated in the £270-290/t delivered range.
Northwest and central Europe bitumen prices, 20-26 Jun
€/t
Low
450
Southern UK domestic
$/t
Rotterdam domestic
400
Low
High
hhhhhhhhhhh
300
250
10 Jan
3 Apr
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
±
Southern UK £/t
250
260 +15.00
311
323 +16.50
Rotterdam, Netherlands
280
295
+5.00
315
332
+6.00
Antwerp, Belgium
280
295
+5.00
315
332
+6.00
Northern Germany
275
285
+5.00
309
321
+5.50
Northeast Germany
235
245
+5.00
264
276
+5.50
Southern Germany
270
280
+5.00
304
315
+6.00
Southwest Germany
270
280
+5.00
304
315
+6.00
Western Germany
280
290
+5.00
315
326
+5.50
Hungary
255
265
+5.00
287
298
+6.00
Romania
280
295
+2.50
315
332
+3.00
Czech Republic
230
240
nc
259
270
nc
Export prices, ex-works
Poland-Germany (truck)
225
235
nc
253
264
nc
Czech Republic-Germany (truck)
215
225
nc
242
253
nc
Poland-Romania (truck)
240
250
nc
270
281
nc
Hungary-Romania (truck)
265
280
+2.50
298
315
+3.00
Rotterdam (cargo)
292.05 296.05 +19.95
Domestic prices, delivered
Southern UK £/t
265
275 +15.00
330
342 +16.67
Brussels
290
305
+5.00
326
343
Northern France
325
335
nc
366
377
nc
Central France
325
335
nc
366
377
nc
+5.50
Crude and refined products, 20-26 Jun
Ice Brent minute marker week range $/bl
Fuel oil 3.5%S, fob RMG barge $/t
Low
High
Average
±
40.48
43.60
41.64
+0.84
218.25 244.50
42.30
229.05 +12.45
45.09
+1.50
Fuel oil straight-run 0.5% fob cargo $/t
285.75 310.75
+10.88
Fuel oil straight-run M-100 cif cargo $/t
238.75 269.00
+10.12
Vacuum gasoil 0.5%S cif cargo $/t
292.50 317.50
+10.88
$/t
Northwest Europe cargo freight rates
350
200
11 Oct
±
Domestic prices, ex-works
Urals cif Rotterdam $/bl
Southern UK domestic and Rotterdam domestic
$/t
High
Low
High
±
Rotterdam-Thames
20
23
+2
Hamburg-Thames
24
27
+2
Klaipeda-Thames
40
44
+2
La Coruna-Thames
32
36
+2
26 Jun
Page 3 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Northwest and Central Europe market commentary
Hefty gains for Rotterdam cargo prices in outright terms,
partly because of a $7-8/t assessed rise to around $65/t to
fob Rotterdam cargo premiums for HSFO barges on a fob
basis and $1-2/t gains in freight rate assessments for routes
into Thames terminals. The combination of those gains left
cfr Thames values at $315-320/t, or £256-257/t.
Two cargoes were delivered into UK terminals, one of
them on board the 4,531 dwt Stella Maris that loaded its
cargo in Delfzijl, Netherlands, and the other on the 6,189
dwt Iver Blessing that was loaded in Klaipeda, Lithuania. The
cargoes arrive at Thames 26 and 25 June respectively.
The domestic bitumen supply situation was still constrained by cutbacks in production at Total's Lindsey refinery
in northeast England, although the firm said it was gradually
raising production towards normal levels to meet peak Summer demand for the construction sector (see news).
Monthly UK government data showed deliveries of bitumen for inland consumption at 56,000t in April, a drop of
105,000t from the same month last year. For February to
April consumption stood at 294,000t, down by 160,000 from
the same period of 2019, with the coronavirus lockdown
behind much of the drop.
The April figure is the lowest monthly consumption figure
since December 2010 and the worst April figure since records
began in 1998, with April typically being one of the busiest
months of the year for paving work.
The Irish construction sector was increasingly busy,
generating rising import requirements, especially into Dublin
terminals. The 6,384 dwt Bithav moved a cargo from Port
Jerome, northern France, into Dublin, arriving 23 June.
Another Irish importer was set to move an early July cargo
from La Coruna, Spain,into its Dublin terminal, with another
such cargo movement expected later in the month.
Germany: North vs South
400
Northern Germany
$/t
Southern Germany
375
350
325
hhhh
300
275
250
11 Oct
10 Jan
3 Apr
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
26 Jun
France
Construction activity levels rose further as contractors
raced to make up for lost time during the Covid-19 lockdown
period that saw activity and demand levels to fall to just a
fifth of company targets.
Price assessments were stable for domestic sales at
€325-335/t delivered across the country's regions ahead of
monthly price revisions that are expected to see hefty price
hikes. That would reflect not only rising crude and fuel oil
prices during June versus May, but also rising demand that
in July and August could well surpass normal levels for the
time of year.
While July activity and demand is likely to be higher than
normal, the August outlook is even more bullish versus usual
levels in a month that usually sees a marked slowdown during the holiday month. Many construction firms are understood to have encouraged their staff to take holidays during
the March to May slowdown period linked to the coronavirus
lockdown in the country, and to continue working through
August.
French refineries continued to struggle to keep up with
domestic requirements, with Total's 105,000 b/d Feyzin
refinery in Lyon still expected to remain shut until late-July.
But some supplies were being made available from the firm's
93,000 b/d Grandpuits refinery near Paris, adding to a continuing flow of bitumen volumes from the firm's 240,000 b/d
Gonfreville refinery in northern France.
A sharp rise in French domestic duty on off-road diesel,
effective from 1 July, was set to raise road construction
costs, putting most financial pressure on the country's smaller contractors that could affect their operations in parts of
the country. While the agricultural sector will be exempt
from the tax hike, that will not be the case for vehicles and
machinery used in road projects.
Benelux
Market participants in Belgium and the Netherlands reported
strong activity and demand in June, with bitumen volumes
in the Dutch market up on the same month last year.
July was expected by some players to be another busy
month, with one construction firm reporting a busy order
book for the month.
Domestic prices in the Benelux markets were assessed
€5/t up at €280-295/t ex-works, with much greater monthly
price hikes anticipated for July volumes. Some domestic
Dutch sales were reported being made in the €300-310/t exworks range.
No specific supply issues were reported, although there
Page 4 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Northwest and Central Europe market commentary
were some delays in truck loadings from the Botlek terminal
near Rotterdam.
Germany
Domestic prices were assessed €5/t higher across the country's regions, with the west staying highest in the €280-290/t
ex-works range, in part reflecting tight supply in and import
requirements into France.
In northeast Germany, prices were assessed at €235245/t ex-works, with south and southwest Germany levels
rose to the €270-280/t ex-works range. One buyer indicated
offers as high as the €300-350/t ex-works range in western
Germany, as well as south and southwest Germany offers at
€300-310/t ex-works in the week ending 26 June.
Monthly price talks were widely expected to result in
hefty bitumen price gains, with effect from 1 July, amid
strong demand and lack of surplus volumes for export to
other regional markets. Activity levels remained seasonally
high despite some wetter weather.
While most refineries were running at high levels for
bitumen production, there were still major restrictions on
bitumen production and supply from the Miro refinery in
Karlsruhe, southwest Germany. That situation was expected
to persist throughout July, mainly linked to rising prices for
and reduced supply of some Mideast crudes suitable for bitumen production, a situation underlined by the recent Opec+
output deal.
Poland/Czech Republic
There was no confirmation of a return to bitumen production
and supply from PKN subsidiary Unipetrol’s 102,000 b/d Litvinov refinery in the week ending 26 June after indications
in the previous week that such flows would be forthcoming.
Hungary and Romania domestic
425
Hungary domestic
$/t
Romania domestic
400
375
350
hhhh
325
Czech domestic prices were assessed unchanged at €230240/t ex-works. Polish and Czech exports to Germany were
assessed unchanged at €225-235/t and €215-225/t ex-works
respectively, while some domestic Polish volumes were indicated at €245-255/t ex-works.
Polish national statistical body GUS reported the country's bitumen production totalled 180,000t in May, an
increase of 19pc on a year-on-year basis, while total production between January-May was 454,000t, an increase of 17pc
on the previous year. Polish refiner Orlen has been running
its Plock refinery close to capacity throughout the second
quarter to meet strong local and truck export demand,
while Lotos’ Gdansk refinery had also ramped up bitumen
production, reaching around 89,000t of heavy products in
May, almost exclusively bitumen.
Hungary/Romania
Romanian activity and demand levels rose despite the continuation of torrential rainfall that began in mid-June, while
Hungarian domestic demand remained buoyant.
Hungarian domestic bitumen prices for trucks loading
ex-works were assessed €5/t higher at €255-265/t ex-works
Szazhalombatta, while Hungarian truck exports to Romania
were assessed €2-3/t higher at €265-280/t ex-works.
Torrential rains continued across Romania, causing some
flooding and the risk of floods in some regions, limiting the
extent to which road construction firms were able to work
and hurting demand in the areas worst affected.
In small pockets of the country the rains were less limiting and more volumes were being delivered on trucks, particularly in the region near the Carpathian mountains. That
in turn, amid a fundamentally strong construction season in
the country, prompted Rompetrol to raise production to full
rates at its Vega bitumen-producing refinery in Ploiesti after
cuts of around 20pc.
Romanian domestic bitumen prices were assessed €2-3/t
higher at €280-295/t ex-works, with Rompetrol sales indicated in the €282-292/t ex-works range and some Black Sea
terminal truck volumes at €296/t ex-works.
Offers from Nis’ Pancevo refinery were indicated €255/t
ex-works for truck exports to Bulgaria, while Lukoil’s Burgas
refinery was offering at €270/t ex-works.
300
275
250
11 Oct
10 Jan
3 Apr
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
26 Jun
Page 5 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Mediterranean market commentary
Summary
Regional cargo prices rose sharply, with the Argus Mediterranean bitumen price index driven up by strong gains in
high-sulphur fuel oil (HSFO) cargoes and in bitumen cargo
premiums to those values.
Tightening supply, mainly caused by strong domestic and
inland demand across Europe and especially in key supplying countries like Spain and Italy, was the key factor behind
limited cargo availability for export markets, triggering
much higher offered levels for late-June and especially for
July export cargoes.
Greek cargo values were assessed $7-8/t higher at $5560/t fob premiums to fob Mediterranean HSFO cargoes as
some July volumes were offered in the +$60-65/t fob range.
Italian cargo premiums were assessed up $5/t at $40-45/t
fob premiums, while Spanish premiums were assessed $7-8/t
higher at $50-55/t fob.
Turkish refiner Tupras awarded only a tiny portion of its
third quarter sell tender, while Portuguese refiner Galp was
set to shut its Porto refinery bitumen and base oils units for
two weeks in August.
Freight rates for cross-Mediterranean routes were assessed $2-23/t higher in most cases as the pool of idled and
available spot tankers shrank further as vessels are taken up
on time charters or leave the Mediterranean basin.
Algeria/Morocco/Tunisia
Algerian state oil firm Sonatrach looked to have resolved
discussions with Cepsa over the pricing basis for its 2020
tender import volumes from the Spanish supplier, which had
been thrown into uncertainty by the collapse in crude prices
related to Covid-19.
Prices under the tender for around 170,000-180,000t of
Italy domestic and Mediterranean HSFO fob cargoes
500
Italy domestic
$/t
Mediterranean fob (Augusta)
Low
High
±
265.65
270.65
+15.68
Mediterranean bitumen prices, 20-26 Jun
Local currency/t
$/t
Low
High
±
Low
High
Italy, including tax
270
280
+10.00
304
315 +11.50
Southern France (delivered)
325
335
nc
366
377
nc
Northeast Spain
315
325
nc
354
366
nc
Domestic prices, ex-works
Southwest Spain
315
325
nc
354
366
nc
1,994
1,994
+6.00
291
291
+1.00
Izmir, Turkey
1,994
1,994
+6.00
291
291
+1.00
Batman, Turkey
2,028 2,028
+6.00
296
296
+1.00
Kirikkale, Turkey
2,028 2,028
+6.00
296
296
+1.00
Izmit, Turkey
Export prices, fob $/t
Differential to HSFO
Italy
+40
+45
+5.00 261.65 266.65 +14.35
Greece
+55
+60
+7.50 276.65 281.65 +16.85
Spain
+50
+55
+7.50 271.65 276.65 +16.85
Albania
+23
+27
+7.50 244.65 248.65 +16.85
Delivered cargo prices, cfr
Alexandria, Egypt
307
Gebze-Mersin, Turkey
303
317 +18.00
313 +18.00
Ghazaouet, Algeria
296
306 +18.00
Rades, Tunisia
287
297 +15.00
Economics
Mid
±
Bitumen’s value as a fuel oil blendstock $/t
198
+8.26
Crude and refined products, 20-26 Jun
Low
Fuel oil 3.5% 0.998 fob
High Average
204.25 240.00
221.65
±
+9.35
Basrah Light fob Sidi Kerir
42.70
45.89
+1.83
Urals Med Aframax
42.75
46.09
+1.30
38.38
41.72
+1.30
287.50 312.50
+10.12
Iran Heavy fob Sidi Kerir
VGO 0.5% west Med cif $/t
$/t
Mediterranean cargo freight rates
300
200
100
10 Jan
±
HSFO Med
400
0
11 Oct
$/t
Mediterranean price index
3 Apr
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
26 Jun
Low
High
±
Augusta-Mohammedia
41
44
+2
Tarragona-Mohammedia
30
33
+2
Augusta-Alexandria
36
40
+2
Augusta-Tunis-Rades
21
25
+2
Livorno-Tunis-Rades
25
29
+2
Tarragona-Gazaouet
24
28
+2
Aspropyrgos-Corinth-Agio Theodori-GebzeMersin
26
30
+2
Aspropyrgos-Corinth-Agio Theodori-Alexandria
30
34
+2
Page 6 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Mediterranean market commentary
bitumen had been linked to North Sea Dated physical crude
prices, with the precise formula under the deal now revised.
That paved the way for the 4,999 dwt Sonatrach tanker Ras
Tomb to load a cargo from Tarragona for 22 June discharge
into Algiers.
North African importers were pushing back against
sharply rising offered prices for delivered cargoes, preferring
instead to run down their stocks and wait out the current
strong run in regional market conditions.
Construction activity and bitumen demand in Algeria
has yet to reach normal levels for the paving season. While
demand has been rising, it is not expected to reach peak
seasonal levels until September, pending Covid-19 developments. Moroccan activity is thought likely to strengthen in
July as the government continues to encourage contractors
to push projects forward.
A cargo was discharged into the Tunisian ports of Sfax
and Rades by 22 June aboard the 7,499 dwt Poestella that
was loaded in Augusta, Sicily, amid a June pick-up in Tunisian activity following a collapse in activity because of the
Coronavirus and associated lockdowns.
The 4,999 dwt Ain Zeft moved a cargo from Augusta to
Algiers for 28 June arrival.
Egypt
EGPC’s 115,000 b/d El-Mex refinery in Alexandria was still
thought to be ramping up bitumen production to reach 1,000
t/day by end-June.
The Egyptian state refiner will receive nine 4,0007,000t cargoes under its July import tender, which was fully
awarded to Vitol at delivered premiums to fob Mediterranean HSFO cargoes that were variously indicated at +$68/t
and +$75/t.
Vitol’s 37,000 dwt Asphalt Synergy was still discharging a
cargo that was loaded at Agio Theodori, Greece, in earlyJune and moved into EGPC’s Alexandria terminal under the
firm’s June tender. Vitol was awarded six 4,000-7,000t June
cargoes at $70-75/t delivered premiums to fob Mediterranean HSFO cargoes, while BB Energy won a single cargo at a
$95/t delivered premium.
Vitol is expected to meet the requirements of the July
tender volumes using large and mid-sized tankers.
Spanish refinery bitumen production was understood to have
been steadily raised to meet strong domestic and inland
requirements, leaving few surpluses for cargo shipment to
export markets.
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
Italy
Italian refineries were still running well below capacity, estimated at just 70-75pc because of still weak fuels demand.
That meant bitumen production was also still restricted,
meaning little or no availability of surplus spot cargoes for
export markets.
Domestic demand was steadily rising with activity in
Italy domestic less bitumen fuel oil blendstock value
$/t
300
250
200
150
Spain/Portugal
Copyright © 2020 Argus Media group
That helped push Spanish cargo premiums $7-8/t up at
assessed $50-55/t levels above fob Mediterranean HSFO cargoes, with a Canary Islands cargo offered as high as +$100/t
fob.
A 20-day halt of fuels units at Repsol's Tarragona refinery
was having minimal impact on production at the adjacent
1.2 mn t/yr Repsol-Cepsa joint venture Asesa bitumen
refinery that was being fed with sufficient bitumen-rich and
residue feedstocks from internal and external sources to
keep it running at high rates.
Portuguese refiner Galp will halt bitumen and base oils
units at its 110,0000 b/d Porto refinery for a two-week period in August.
Domestic Spanish prices were assessed unchanged at
around €320/t ex-works, with sharp monthly price gains
anticipated to take effect from 1 July given strong demand,
tight supply and rising crude and fuel oil prices during June.
Trucks were busy exporting bitumen from Bilbao and
Tarragona to southern France as tight supply persisted there,
with the 105,000 b/d Total refinery at Feyzin, near Lyon,
expected to stay shut for another month.
The 14,911 dwt The Amigo loaded a cargo at Cadiz for
transatlantic shipment to Baltimore, Maryland, on the US
east coast. The 8,476 dwt Black Shark loaded a cargo from
Huelva for 28 June discharge into Blaye, France.
100
50
11 Oct
Page 7 of 21
10 Jan
3 Apr
26 Jun
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Mediterranean market commentary
north and central Italy up after wet weather that had slowed
project work.
Contracting firms had during May taken advantage of
reduced traffic on roads to continue projects, helping lift bitumen consumption in May by 2pc year-on-year to 166,000t,
according to Unione Petrolifera data.
Italian cargo premiums to fob Mediterranean HSFO cargoes were assessed $5/t higher at $40-45/t fob as demand
for cargoes outpaced the ability of refiners to supply them.
Domestic Italian bitumen truck prices were assessed
€10/t higher at €270-280/t ex-works, including the €31/t
domestic duty for road paving pen grades.
The 5,765 dwt Iver Agile loaded a cargo from Livorno for
26 June discharge into the Arinaga terminal in Gran Canaria.
The 6,100 dwt Iver Bitumen moved a cargo from Augusta to
Naples for 24 June arrival.
Greece
Greek bitumen suppliers were feeling the weight of Mediterranean demand, with Motor Oil Hellas indicated having little
remaining June cargo availability, while its July cargoes were
being actively sought.
Cargo values were assessed $7-8/t higher at $55-60/t fob
premiums to fob Mediterranean HSFO cargoes, amid MOH
cargo offers in the $60-65/t premium range for July loading
dates.
Several large bitumen tankers have taken product from
Agio Theodori throughout June, including two 37,000 dwt
vessels in Vitol’s fleet, as well as a host of medium sized
tankers taking product into the Mideast Gulf, Egypt and
other Mediterranean terminals.
Ex-works prices from Hellenic Petroleum’s Aspropyrgos
refinery for truck exports to the Balkans were indicated at
$20-25/t premiums to domestic Hellenic prices, which in
turn had seen their formulae premiums to cif Mediterranean HSFO cargoes raised sharply to $40-45/t from previous
premiums of $16-20/t on the main grades out of Thessaloniki
and Aspropyrgos.
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
The 13,265 dwt Jin Zhou Wan loaded a cargo from Agio
Theodori on 16 June, with the cargo expected to be delivered into Jubail, Saudi Arabia, under a contractual deal
between a trading firm and Saudi Aramco.
Turkey
Turkish refiner Tupras awarded only a fraction of the bitumen that it offered under its third-quarter export tender,
with just a single 5,000-7,000t Izmit cargo for loading during
September awarded (see news).
The firm had offered up to 72,000t, made up of one to
two 5,000-7,000t cargoes a month from its 227,000 b/d Izmit
refinery in July-September, and one 30,000t cargo from its
227,000 b/d Izmir refinery in September.
Tupras' Izmir refinery in Aliaga is expected to restart in
July after a shutdown since 5 Nay caused by a collapse in oil
products demand.
Posted prices from Tupras’ refineries were all up TL6/t at
TL1,994/t ex-works Izmit and Izmir TL2,028/t ex-works from
its northern and eastern refineries in Kirikkale and Batman
respectively.
France: North vs South
425
Northern France
$/t
Southern France
400
375
350
hhhh
325
300
275
11 Oct
Page 8 of 21
10 Jan
3 Apr
26 Jun
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
SUB-SAHaRAN africa market commentary
Summary
Cargo prices into west African markets rose sharply on
tightening bitumen supply, while others regions were stable
ahead of anticipated monthly gains in South African domestic prices for July volumes.
Activity levels remained generally low, with the exception of some markets like Mauritania and Senegal, as well
as Kenya and Botswana. The Nigerian market remained
subdued as heavy rainfall underlined the start of the rainy
season.
West Africa
Local currency/t
$/t
Low
High
±
Low
High
±
4,600
4,900
nc
266
283
-1.50
Domestic prices, ex-works
South Africa
Import/export prices
$/t
Ivory Coast, fob Abidjan (export, cargo)
362
367 +16.85
Nigeria, cfr Lagos (import cargo)
384
394 +18.00
Ghana, cfr Takoradi-Tema (import, cargo)
384
394 +16.00
Kenya, cfr Mombasa (import, drums)
293
303
Tanzania, cfr Dar es Salaam (import, drums)
293
303
Freight rates
Cargo prices for deliveries into west African terminals rose
sharply as bitumen outright prices were driven up by much
firmer high-sulphur fuel oil (HSFO) values and by further
strong gains in bitumen premiums to those levels.
Spanish fob cargo assessments rose by $7-8/t to $50-55/t
premiums to fob Mediterranean HSFO cargoes, fob basis
Tarragona/Huelva, while Ivory Coast premiums were also assessed $7-8/t firmer at $140-145/t fob basis Abidjan.
While overall demand levels were stable, with more
activity into Mauritania and Senegal, the key Nigerian market was hit hard by heavy rainfall, causing flooding in some
places. Cameroon was also hit hard by rainfall, while coastal
areas of Ghana, Ivory Coast, Liberia, Sierra Leone and
Guinea were also affected.
Regional market participants awaited the resumption
of production and supply from SMB's 300,000 t/yr bitumenproducing refinery in Abidjan, Ivory Coast, after a 150,000t
cargo of Ecuadorean bitumen-rich Napo crude was discharge
into Abidjan on 17-18 June on board the 159,039 dwt AST
Sunshine.
Tanzania, cfr Dar es Salaam drums
$/t
400
350
300
250
200
11 Oct
Sub-Saharan Africa bitumen prices, 20-26 Jun
10 Jan
3 Apr
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
26 Jun
nc
nc
$/t
Abidjan-Lagos-Warri-Port Harcourt (cargo)
36
40
+1.00
Abidjan-Takoradi-Tema (cargo)
22
27
+1.00
Tarragona-Lagos-Warri-Port Harcourt (cargo)
95
105
+2.50
Bandar Abbas-Jebel Ali-Mombasa (drums)
60
65
nc
Bandar Abbas-Jebel Ali-Dar es Salaam (drums)
60
65
nc
Bandar Abbas-Jebel Ali-Djibouti (drums)
63
67
nc
$/t
Mideast Gulf to Africa freight rates
Low
High
±
Bandar Abbas/Jebel Ali-Mombasa (drums)
60
65
nc
Bandar Abbas/Jebel Ali-Dar es Salaam (drums)
60
65
nc
Bandar Abbas/Jebel Ali-Djibouti (drums)
63
67
nc
The 4,900 dwt SMB time-chartered bitumen tanker San
Biagio was still anchored off Abidjan on 26 June, as it has
been since 5 June after a delivery into Takoradi, Ghana, and
Douala, Cameroon.
The 9776 dwt Viveka was delivering a cargo into one of
the import terminals in Dakar, Senegal. It was unclear if the
second was the second in a two-port discharge after a 22
June delivery into Douala, Cameroon, or if a fresh cargo was
loaded at Lome, Togo, for shipment into Dakar.
Suppliers were competing to win part or all of the
12-month Mauritania tender for around 20,000t of bitumen
into Nouakchott from July onwards. Some cargo volumes
were indicated offered out of a Canary Islands terminal at
a premium of around $100/t to fob Mediterranean HSFO
cargoes. The terminal is one of a number of possible sources
of bitumen for supply into Mauritania. With Greek cargo volumes being offered at premiums to fob Mediterranean HSFO
cargoes of up to $60-65/t for July loading volumes from
Agio Theodori, with notional cargo values into Nouakchott
indicated as high as $380-390/t cfr.
The 5,765 dwt Iver Agile moved a cargo from Livorno,
Italy, to the Arinaga terminal in Gran Canaria for 26 June
arrival. The 6,123 dwt Xing Hai Wan was arriving at the same
Page 9 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
SUB-SAHaRAN africa market commentary
terminal on the same day from the French Atlantic import
terminal at Nantes, with the vessel now empty of product.
Nigeria
The country entered its second week of heavy rainfall,
marking an early start to its rainy season that usually runs
from late-June/early-July to late-August/early-September.
That brought the curtain down on an already disappointing dry season, most notably throughout the second
quarter when construction activity largely halted in April by
a Nigerian government Covid-19 lockdown that was followed
by weak activity and demand. That in turn has been caused
by falling government oil revenues, as well as a rise in trade
financing issues affecting Nigerian importers.
No new cargo flows were indicated into Nigerian terminals during the week ending 26 June.
Nigeria's Petroleum Products Pricing Regulatory Agency
released fresh data showing inland bitumen stocks fell
again to 21,777,871 litres (22,199t) on 22 June, down
from 25,104,935 litres (25,590t) in the previous week
and 37,270,612 litres (37,991t) on 10 June — having hit a
52,921,704 litres (53,945t) peak on 29 May.
East Africa
A volatile Iranian bitumen export market continued, with
another rise in domestic vacuum bottom feedstock prices
countered by a fall in the country's rial exchange rate
against the US dollar.
The net effect was no change in assessed Iranian
drummed export prices, which stayed at $230-240/t fob
Bandar Abbas, meaning no change in delivered values into
east African terminals. Freight rates for Iranian drummed
shipments from Bandar Abbas to Mombasa, Kenya, and Dar
es Salaam, Tanzania, stayed in the $60-65/t range, implying some import sales into those ports in the $290-305/t cfr
range.
Iranian drummed exports had dropped $25/t in the week
ended 19 June, partly reversing dramatic gains totalling
$60/t in the first half of June. The volatility has been linked
to crude and fuel oil fluctuations and to sharp upward and
downward movements in Iranian vacuum bottom prices, as
well as volatile exchange rates for the Iranian currency.
That in turn has made trading and supply firms moving
volumes into east African terminals increasingly cautious,
resulting in a slowdown in movements and fresh deals.
Uganda
The Ugandan construction sector has been more busy than
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
most other east African markets, with suppliers putting
together offers into a 40,000t bitumen buy tender recently
issued by a European construction firm.
While the tender runs for about a year, with Europeansourced bitutainer flows likely to predominate, some
volumes linked to the requirement are understood to have
already been supplied in drums via the Kenyan import terminal in Mombasa.
Uganda National Roads Authority issued a list of 22 ongoing road upgrading projects in the country, which included
the Kampala Northern Bypass, the Busega-Mpigi Expressway
and Lot 1 of the Kampala Flyover Construction and Road
Upgrading Project. Most of the listed projects, which cover a
total distance of 1,581km, involve construction and upgrading from gravel to paved standards
A 2,000t drummed Iranian bitumen consignment was
awaiting export shipment at Bandar Abbas for delivery into
Mombasa and onward truck shipment into the landlocked
Ugandan market.
Southern Africa
Regional activity was stable, with the South African construction sector mainly focused on winter season road
surfacing activities, while bitumen flows from the country
to its regional neighbours were still stymied by cross-border
delays.
Botswana and Zambia remained two of the more active
countries in the region road construction, but South African
exporters to those countries pointed to continued border
checks and restrictions linked to Covid-19 concerns. Truck
supplies from South Africa into Botswana, which usually
involve 3-4 day round trips, were being prolonged to a week
or more in some cases.
West Africa cargo cfr- Med HSFO fob cargoes
260
240
220
200
180
160
140
120
11 Oct
Page 10 of 21
10 Jan
3 Apr
26 Jun
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
SUB-SAHaRAN africa market commentary
Construction activity in parts of Namibia remained limited despite the easing of Covid-19 restrictions in the country. The rate of road and highway project work was most
affected in the Windhoek area, where other construction
materials like aggregates had already been built up awaiting
the bitumen stage of work, with the latter now being put
back by 2-3 months, according to suppliers.
South Africa
Work on South African roads was largely restricted to surface dressing and sealing activities, while the usual winter
period ban is in place on activities that involve the laying of
hot mixed asphalt in road upgrading projects.
Proposed changes to Argus Europe, Africa
bitumen prices
Argus proposes to change the Argus Bitumen methodology to include a wider array of information in the grades
and locations of some assessments.
Under this proposal:
„„ Spain exports add Cartagena
„„ Italy exports add Taranto
„„ Romania domestic add Mangalia, Constanta, Galati
and Brasov
„„ Hungary, Romania and Czech Republic domestic add
pen 70/100
„„ Poland-Germany, Czech Republic-Germany, PolandRomania and Hungary-Romania exports add pen 70/100
„„ Southern Germany removes Ingolstadt
Asphalt del West Africa and fuel oil fob Med
„„ For South Africa, remove the reference to fob prices
at which tender work is awarded
Argus will accept comments on this change up to 10
July. To discuss comments on this proposal please
contact Argus Bitumen report editor, Jonathan Weston
at +44 (0)20 71995779 or email: jonathan.weston@
argusmedia.com. Formal comments should be marked as
such and be submitted by email to jonathan.weston@argusmedia.com by 10 July. Please note, formal comments
will be published after the consultation period unless
confidentiality is specifically requested.
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
That kept a lid on bitumen requirements, although contractors were reported seeking special permission to carry
out road paving work on one or two projects in the Limpopo
region of northeast South Africa.
Cold weather conditions in some parts of the country,
most notably in the both western and eastern Cape provinces, ate into activity levels and bitumen requirements, but
Kwazulu-Natal and Gauteng provinces were relatively mild
and busier.
Refinery supply remained equally limited, with the
105,000 b/d Engen refinery in Durban the only one in the
country with significant bitumen production and supply.
There was no sign yet of a resumption in bitumen production and supply from the 107,000 b/d Sasol-Total joint
venture refinery in Sasolburg. The refinery had been targeting a mid-June general restart scaling up to full production
by the end of the month, but market participants indicated
that the refinery was still awaiting the right crude feedstock
to produce key grades like pen 50/70 and 70/100.
The 110,000 b/d Astron refinery in Cape Town was
targeting an early-July restart after being down since midFebruary for a maintenance halt that was scheduled to have
lasted two months. A combination of labour dispute issues
and Covid-19 restrictions on maintenance work have delayed
the resumption.
The 180,000 b/d BP-Shell Sapref refinery in Durban was
expected to restart on 6 July after receiving crude oil, with
bitumen truck volumes to be made available from 10 July.
Domestic price levels were stable ahead of the usual
monthly revisions, with sharp hikes widely expected from 1
July after strong crude and fuel oil gains during June versus
May.
500
West Africa waterborne, cfr
$/t
Med HSFO
400
300
hhhhhhhhhhh
200
100
0
11 Oct
Page 11 of 21
10 Jan
3 Apr
26 Jun
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Asia-Pacific and Middle East Market Commentary
Singapore
Singapore pen 60/70 bitumen export prices for end-July
and early-August loading increased $10/t to $310-320/t fob.
Singapore prices have jumped nearly 45pc in the past month
as supplies tighten and demand in southeast Asia firms.
Spot availability remains thin from Singapore as most
refiners have sold cargoes for July. Traders are anticipating that the price rally may continue on the back of limited
availability of volumes as refiners keep run rates low on the
back of weaker transport fuel demand.
Offers from Singapore have remained firm, with levels
now hovering around $320-340/t fob, but bid ideas are now
in the range of $305-315/t fob.
Southeast Asia demand remains robust, at least in
Thailand, Vietnam and Malaysia. Tighter availability of spot
cargoes from Singapore and neighboring Malaysia have now
resulted in spot cargoes from South Korea finding homes in
southeast Asia. A recent tender for pen 60/70 concluded by
a refiner in South Korea was awarded to traders with all the
volume moving to southeast Asia. North Asian volumes have
been meeting demand all the way to Australia as well.
Demand across China remained lacklustre with unsupportive weather and high inventories hitting negotiations.
With domestic prices seeing smaller adjustments, traders
point to a lag in prices making import cargoes unattractive.
Tighter availability of cargoes has also started to pressure freight rates, which have weakened. Freight across the
region has started to fall, with the exception of smaller vessels of 3,000t, which are holding firmer rates as availability
remains thin.
Southeast Asia buyers have had discussions with Bahrain
as well, where prices are lower by $105/t to Singapore, making cargoes workable to Asia.
Asia bitumen prices, 20-26 Jun
Local currency/t
Low
$/t
High
±
Low
High
±
Domestic prices, ex-works
398,350
494,920
-265.0
330
410 +0.50
Mumbai, India
21,049
23,049
nc
277
304 +1.00
Mumbai, India
(drums)
23,349
25,349
nc
308
334 +1.00
13,452
13,916
+26.0
435
450 +2.50
6,160,000 6,160,000
nc
433
433 -3.00
439
nc
307
315
nc
488
501
-0.50
350
360
nc
21,513
29,619
nc
201
277 +0.50
South Korea
Thailand
Indonesia
Singapore
428
Singapore-Malaysia
ex-ref
Japan
Waterborne, fob
Iran
170
180
nc
Iran (drums)
230
240
nc
nc
Bahrain
Singapore
Singapore (drums)
79
79
nc
210
210
432
446
+14.00
310
320 +10.00
571
585
-0.50
410
420
9,586
9,896
+273.5
310
320 +10.00
344,030
356,101
+8,389.5
285
295 +7.50
8,931
9,167
+230.0
302
310 +8.50
North China coast
2,178
2,277
+31.0
308
322 +5.00
East China coast
2,214
2,673
+17.0
313
378 +3.00
South China coast
2,461
2,560
+59.0
348
362 +9.00
Northern Vietnam (drums)
270
443
nc
Southern Vietnam (drums)
265
433
nc
Economics
Mid
±
Bitumen’s value as fuel oil blendstock, Singapore
215 +0.45
Thailand
South Korea
Taiwan
nc
Waterborne, cfr
Asian Bitumen Price Index
Index
±
ABX 1 fob Singapore
315.00
+10.00
ABX 2 fob South Korea
290.00
+7.50
Contract
Jun 20
May 20
ABX 1
293.75
205.50
ABX 2
277.50
195.50
Monthly Average (contract)
Singapore pen 60/70 and HSFO cargoes
500
$/t
Singapore pen 60/70 waterborne
Singapore HSFO 180cst
Fob Mideast Gulf Price
Mideast Gulf fob ($/t)
400
Low
High
±
175.00
210.00
nc
High
±
Crude and refined products, 20-26 Jun
300
Low
hh
200
Dubai fob Dubai $/bl
40.47
43.51
+1.19
Basrah Light fob Basrah $/bl
42.39
45.48
+1.07
100
Banoco Arab Medium $/bl
0
11 Oct
10 Jan
3 Apr
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
26 Jun
40.54
43.53
+1.25
Fuel oil HS 180cst fob Singapore $/t
227.25
244.50
+2.00
Fuel oil HS 380cst fob Singapore $/t
219.00
235.25
+3.75
45.45
48.15
+1.18
Gasoil 0.5% fob Singapore $/bl
Page 12 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Asia-Pacific and Middle East Market Commentary
Prices at China main refineries, 20-26 Jun
Area
Province
Northwest Xinjiang
Grade
Petrochina Karamay
AH-70, AH-90, AH-110, AH-130
4,050
AH-100, AH-140, AH-180
3,900
90-A
3,050
90-B
2,900
Sinopec Tahe
Northeast
Liaoning
Contract
price Yn/t
Refinery
Posted
price Yn/t
±
Contract
price $/t
nc
4,450
nc
573
629
nc
4,200
nc
551
594
nc
3,230
nc
431
457
nc
3,180
nc
410
450
±
Posted
price $/t
Petrochina Liaohe
AH-70, AH-90, AH-110, AH-100, AH-140
1,700
nc
2,100
nc
240
297
Panjin Northern
AH-90, AH-110, AH-100, AH-140
3,200
nc
3,850
nc
452
544
523
North
Hebei
Petrochina Qinhuangdao
AH-70, AH-90
3,200
nc
3,700
nc
452
Central
Henan
Sinopec Luoyang
AH-90
2,930
nc
2,990
nc
414
423
East
Shandong
CNOOC asphalt
AH-70, AH-90
3,380
nc
3,700
nc
478
523
Sinopec Qilu
70 -A
3,220
nc
3,450
nc
455
488
90 -A, 70-B
3,220
nc
3,450
nc
455
488
90-B
3,020
nc
3,400
nc
427
481
Sinopec Zhenhai
70-A, 90-A
2,810
nc
2,880
nc
397
407
70-B, 90-B
2,810
nc
2,880
nc
397
407
Petrochina Wenzhou
AH-70, AH-90
2,760
nc
3,150
nc
390
445
Zhejiang
South
West
Shanghai
Sinopec Shanghai
AH-70
3,220
nc
3,360
nc
455
475
Jiangsu
CNOOC Taizhou
AH-70, AH-90
3,450
nc
3,600
nc
488
509
441
Guangdong
Sichuan
Sinopec Jinling
70-A, 90-A
3,040
nc
3,120
nc
430
Petrochina Xingneng
70-A, 90-A
3,110
nc
3,480
nc
440
492
Jangyin Alpha
70-A, 90-A
3,050
nc
3,370
nc
431
477
Sinopec Maoming
70-A, 90-A
2,880
nc
2,950
nc
407
417
Sinopec Guangzhou
70-A, 90A
2,990
nc
3,050
nc
423
431
Petrochina Gaofu
AH-70, AH-90
3,680
nc
3,850
nc
520
544
CNOOC Luzhou
AH-70, AH-90
3,800
nc
3,800
nc
537
537
$/t
Bitumen freight, 20-26 Jun
-9.5
refiner indicated that they have no volumes to sell for first
half-July due to strong export demand.
Singapore-east Australia
113
118
Singapore-west Australia
63
68
-7.0
Singapore-Gresik, Indonesia
30
33
+1.0
Malaysia
Singapore-south China
38
42
-1.0
Singapore-east China
50
58
-8.5
Thailand-south China
45
50
nc
Thailand-east China
40
45
nc
Thailand-east Australia
110
115
nc
Thailand-west Australia
60
65
nc
Taiwan-Ho Chi Minh, Vietnam
36
38
nc
Taiwan-Haiphong, Vietnam
30
35
nc
South Korea-east China
28
32
-2.5
South China-Haiphong, Vietnam
25
30
+3.5
Limited supplies and the ongoing demand surge from road
contractors in Malaysia pushed domestic prices higher at the
state-owned refiner.
Domestic prices were set by the refiner at 1,800-1,900
ringgit/t ex-Malacca ($420-444/t), an increase of nearly 25
ringgit/t from the week ending 19 June.
With tight supplies, the refiner will not have spot cargoes
available for export in August.
In the north, demand held steady with ongoing road
works. However, road contractors point to thinner supplies and are seeking postponement in road projects, with
demand expected to soften slightly.
Prices in Klang were maintained at 1,840-1,970 ringgit/t
ex-Klang ($429-459/t), as supplies remain limited.
Bitumen prices remain stronger than high-sulphur fuel oil
(HSFO) 180cst, with refiners looking at bitumen production.
Bitumen availability for August from Singapore refiners were
yet to emerge.
Singapore tank truck price held firm at $350-360/t exrefinery, with deals yet to conclude. At least one Singapore
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
Thailand
In line with regional price movements, Thailand's export
Page 13 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Asia-Pacific and Middle East Market Commentary
prices were also assessed upwards by $10/t at $310-320/t fob
for July-loading cargoes.
Export availability remains thin with refiners across the
country lowering bitumen production as refinery run rates
remain low. Refiners are also likely to lower the term lifting
to cater to domestic demand. A July spot cargo was being
offered at around $315-320/t fob, but no deal was done.
Domestic demand remains robust, although road construction activities have shown slight weakness on the back
of rain in some areas. An importer was seeking around
2,000t for July-delivery and was quoted the cargo at $370380/t cfr, no deal was concluded. Domestic prices were up
by $3/t at $435-450/t ex-tank, with one seller pointing out to
firmer selling price.
Indonesia
Across the country, domestic demand remains soft, with
construction works still stalled from tighter liquidity and
climbing Covid-19 cases.
Industry participants have adopted a wait-and-see approach, at least until the next phase of easing of Covid-19
lockdown restriction begins.
With uncertainty in the full resumption of road construction projects, market participants held back from lifting.
Price ideas hovered around $290-300/t fob Singapore, with
none wanting to secure a cargo above $300/t fob.
One importer is seeking prompt volumes of around
1,000t-1,500t in anticipation of the resumption of road works
from July onwards, but no deal has concluded.
Vietnam
Road construction activities remain firm across the country
as importers continue to seek cargoes.
Delivered cargoes: North and South China
450
North China
$/t
South China
Low
High
±
Thailand fob (Class 170)
324
330
+9.50
Thailand fob (Class 320)
329
335
+9.50
Singapore fob (Class 170)
325
335
+10.00
Singapore fob (Class 320)
330
340
+10.00
Low
High
±
4
5
nc
$/t
Mideast Gulf to India freight rates
Bandar Abbas/ Nhava Sheva (drums)
Bandar Abbas/ Mundra (drums)
4
5
nc
Bandar Abbas/ Haldia (drums)
35
40
nc
Bandar Abbas/ Mundra (bulk)
50
55
nc
Bandar Abbas/ Karwar (bulk)
55
60
nc
Bandar Abbas/ Kakinada (bulk)
90
95
nc
100
105
nc
Bandar Abbas/ Haldia (bulk)
As supplies from southeast Asian refineries remain tight,
cargoes from north Asia have been finding homes in Vietnam. A two port discharge cargo into north Vietnam was
sold in the week to 26 June — the cargo loaded from China.
Offers into Vietnam are now in the range of $350-360/t
cfr south Vietnam and $360-370/t cfr north Vietnam, this
netbacks to around $320-330/t fob Singapore.
Several road projects need to be concluded by the end
of this year, which has pushed the demand for bitumen up.
Road works may slow thanks to the upcoming monsoon season, but importers have pointed out to inventories not being
enough to cater to demand. The requirement for 20,00030,000t from a state-owned importer was yet to be fulfilled.
Negotiations for August-loading cargoes were yet to
emerge. Domestic prices were maintained by the sellers in
the north at around $397-430/t ex-tank, while prices in the
south softened to around 9,200-9800 dong/t ex-tank ($393418/t).
South Korea
400
350
300
hhhh
250
200
150
11 Oct
$/t
Australia import cargo prices, 20-26 Jun
10 Jan
3 Apr
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
26 Jun
South Korea export prices moved up by $7.50/t to $285-295/t
fob South Korea, as supplies remain tight and demand from
southeast Asia firms up to support cargoes finding homes in
the region.
The 800,000 b/d refinery issued a tender concluding on
25 June for seven export cargoes for August-loading at a
premium of $60-65/t to HSFO 180cst, which translates to
around $300-310/t fob. All the cargoes are likely heading to
southeast Asia as the grade sold was pen 60/70.
Page 14 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Asia-Pacific and Middle East Market Commentary
Iranian export sales through the IME, 20-25 Jun
Grade
Pen 60/70 & 85/100
AC30-AC40 -60/70
Seller
Price Rials/kg Packing
Volume t Destination
Pasargad Oil
44,000 Drum
Pasargad Oil
31,643 Bulk
Pasargad Oil
33,034-40,500 Bulk
14,000 Export by ship ex-Bandar Abbas
Bitumen Hormoz Pars(BHP)
26,572-29,893 Bulk
14,000 Export by ship ex-Bandar Abbas
Kimia Bitumen
Parsian Energy
Varziran
34,804 Drum
580 DAT Afghanistan
26,572-29,893 Bulk
5,200 Export by ship ex-Bandar Abbas
34,804 Drum
Pasargad Oil
30,500-32,520 Bulk
Oxin Tejarat
30,000 Bulk
Petro Sanat Hormozan
28,232 Bulk
Black Gold
3,000 Export by ship ex-Bandar Abbas
20,000 Export by ship ex-BIK
320 Export by truck ex-Tehran
6,500 Export by truck ex-Tabriz and Tehran
600 Export by truck ex-Tehran
6,800 Export by ship ex-Bandar Abbas
25,307-28,470 Bulk
14,900 Export by truck ex-Esfahan
Fara Shimi Rooz
29,693 Bulk
1,500 Export by truck ex-Jolfa
Hamoon Gostar
25,307 Bulk
1,000 DAT Afghanistan
Jey Oil
36,970 Drum
5,000 Export by truck ex-Esfahan
Jey Oil
27,348 Bulk
20,000 Export by truck ex-Esfahan
Parsian Jey
31,548 Drum
Kasra Bitumen
29,500 Bulk
4,500 Export by ship ex-Bandar Abbas
Petro Pasargad Hormozgan
26,572 Bulk
1,100 Export by ship ex-Bandar Abbas
Roham Sperlus
25,307 Bulk
580 Export by truck ex-Jolfa
Bam Gostaran
25,307 Bulk
1,000 Export by truck ex-Tehran
Petro Akam Pasargad
34,804 Bulk
This tender follows a tender by the 580,000 b/d refinery,
which concluded on 22 June for four export cargoes for Julyloading. The tender was understood to have concluded at a
premium of $57/t to HSFO 180cst July swaps, which translates to $298-310/t fob, with at least one cargo headed to
southeast Asia and the remaining to east China.
Traders are still in market seeking July cargoes, with
some holding bid ideas of around $320-325/t cfr east China.
This netbacks to around $290-295/t fob South Korea. However, buying interest remains thin in China due to unfavourable weather conditions affecting road projects and high
inventories.
Taiwan
In line with regional price movement, export prices were assessed upwards by $8.50/t at $302-310/t fob Taiwan.
It was a short trading week in Taiwan with the Dragon
Boat Festival public holiday falling on the 25 and 26 June.
Supplies remain tight from Taiwan due to the ongoing refinery turnaround, which is expected to last until July. Enquiries continue to come in from southeast Asia, but bitumen
availability remains limited thanks to reduced run rates.
The private refiner will likely begin negotiations for August term cargoes in early-July.
Domestic demand in Taiwan remains stable, with good
weather supporting ongoing paving activities.
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
300 Export by truck ex-Esfahan
100 Export by truck ex-Esfahan
China
China import prices moved up by $5/t to $308-322/t cfr
north China, up by $3/t to $313-378/t cfr east China and up
by $9/t at $348-362/t cfr south China.
One state-owned refiner has revised selling prices upwards across east and south regions by 50-80 yuan/t on the
back of tightening supplies and higher crude prices.
Market activity was quiet due to a shorter trading week
with China on a public holiday on the 25 and 26 June for the
Dragon Boat Festival.
Demand in east China remains muted due to unfavourable weather, with buyers citing high inventories and
preferring to wait for the weather to improve. Some market
participants continue to seek cargoes for July-loading in
anticipation of better weather, with some extending price
ideas of $320-325/t cfr east China. This netbacks to around
$290-295/t fob South Korea. A South Korea based trader was
awarded three cargoes from a tender that was concluded in
South Korea. The tender which was concluded on 22 June
at $298-310/t fob South Korea for July-loading. The cargoes
may move into east China at around $335-340/t cfr east
China.
Weather conditions have improved slightly in south China,
but buying momentum has yet to pick up with the shorter
trading week, sufficient inventories and higher import prices
slowing buying. Singapore prices have been rising sharply on
Page 15 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Asia-Pacific and Middle East Market Commentary
the back of strong southeast Asia demand, making current
levels difficult to move into south China.
The state-owned refiner has also confirmed not to have
spot cargo availability for export for July.
Australia
Road construction activities were mostly steady and prompt
demand for bitumen was strong, as contractors finish road
works ahead of the financial year ending 30 June.
With Asian supplies looking tight for spot cargoes,
negotiations for August cargoes have begun. Deals were yet
to conclude. Australia has been bringing in cargoes from
South Korea and China. The Australian government has been
awarding road projects with construction activities expected
to start from September onwards.
India
Domestic demand in India has started to slow with the onset
of the monsoon season. Bitumen consumption in India typically slows down from June through August with the wet
season impeding paving works.
Demand is expected to pick up from mid-August when
road works should resume with more supportive weather.
Refiners maintained their discounts in the range of 2,0002,500 rupees/t ($26-33/t) against the list prices. India’s
state-owned refiners are expected to revise the domestic
bulk and drum bitumen prices on 30 June, with new prices
effective 1 July.
Overall buying interest for bitumen imports remain thin
with the slowdown in construction, with market participants
on the sidelines, holding off from negotiating cargoes.
Bahrain
The state-owned refiner kept export prices steady at $210/t
fob Sitrah after an increase of $30/t on 9 June.
A total of around 15,000-20,000t of bitumen will be loaded in the week ending 26 June with further details awaited.
Cargoes for Asia are also likely to be loaded, as the arbitrage
with Singapore has opened.
Truck loadings for the Saudi Arabia market continued at
a steady pace.
Iran
Volatility continued to hit the Iran export market with
feedstock prices seeing another upward rally, with gains
largely being negated due to the fall of the rial against the
US dollar.
The rial weakened against the US dollar and was trad-
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
Iranian Vacuum Bottom prices from NIOC*, 20-25 Jun
Refinery
Bandar Abbas
Esfahan
Shiraz
Tehran
Tabriz
Abadan
Arak
Volume t
63,000
10,000
10,000
23,000
8,000
35,000
$/t
Rials/kg
Low
High
Low
High
29,233
27,702
26,827
28,260
25,709
25,049
29,609
28,119
27,787
28,579
27,339
25,509
153
145
141
148
135
131
0
155
148
146
150
143
134
0
* Exclusive of the 9pc tax for domestic sales and 14pc duty for export sales
Iranian domestic sales through the IME, 20-25 Jun
Grade
Volume t
Price rials/kg
60/70
85/100
Emulsion
40/50
PG6416-PG5816-PG5822
MC250
3,050
0
no supply
0
0
0
28,615-30,300
ing at $/183,000-203,000 rials on the Sana Platform. On the
NIMA government exchange the currency settled at 162,000190,000/$.
Truck movements to Turkey and Georgia remained
restricted thanks to the lack of permission to import from
Iran. But Iraqi cargoes were being sold into Turkey at competitive prices.
Bitumen bulk prices were stable at $170-180/t fob Bandar
Abbas, with offers moving higher to $185-190/t fob Bandar
Abbas, with no deals concluding. Cargoes from Bandar Imam
Khomeini were being negotiated at $163-165/t fob.
Bulk cargoes were mostly heading to the UAE and south
Asia. Bulk cargo export to east Africa did not happen thanks
to poor weather.
A 10,000t VG30 and pen 60/70 in bulk was sold at $175/t
fob Bandar Abbas for delivery within 14 days. A 6,000t of
pen 60/70 in bulk sold at $173/t fob Bandar Abbas headed
to the UAE. Another 4,000t of pen 60/70 was sold at $178/t
fob headed to Karachi-Pakistan for early July-delivery. A producer sold total 10,000t bitumen in bulk at $171/t fob Bandar
Abbas for delivery within two weeks. The cargo is heading to
India.
Bulk cargoes of various grades pen 60/70, VG30, VG40,
AC30, AC40 totaling around 40,000t were concluded at $170175/t fob Bandar Abbas. The volumes are mostly heading
to Oman, India and the UAE as prompt delivery. A supplier
sold four vessel size cargo at $170-175/t fob Bandar Abbas
delivery within 10 days.
In line with the bulk prices, drum prices were assessed
Page 16 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Asia-Pacific and Middle East Market Commentary
stable at $230-240/t fob Bandar Abbas, for different markets. Most sellers were shipping drum cargoes from previously concluded deals.
Iraqi suppliers sold drums cargoes at $220-225/t fob
Bandar Abbas and 5,000t of pen 60/70 was headed to India.
Container tightness was being reported at the Iraqi ports.
Drums cargoes to Afghanistan were sold at $230-235/t fcaDogharon and fca-Taftan.
A producer sold total 5,000t drums at $228-230/t fob
Bandar Abbas headed to India and east Africa. A supplier
concluded a deal for 120,000t of pen 80/100 for six month
delivery to east Africa at $225-233/t fob Bandar Abbas.
Cargoes to Myanmar were sold at $235-240/t fob Bandar
Abbas. Around 9,000t of VG30 was sold at $224-228/t fob
Bandar Abbas, with the volumes heading to India for delivery
within 40 days. Another 5,000t drum volumes were sold at
$235-240/t fob Bandar Abbas headed to Djibouti and west
Africa. Another 5,000t was sold at $225-229/t fob Bandar
Abbas headed to India for prompt delivery. The landed price
is $230-233/t cfr Mundra. Another 4,000t of pen 60/80 and
80/100 was sold at $248-250/t fob Bandar Abbas headed to
Africa for July delivery. A cargo bound for east Africa was
concluded at $315/t cfr Dar es Salaam. Additionally, 5,000t
of cargo was sold at $315-330/t cfr Bangladesh, Vietnam,
Indonesia and Myanmar. A supplier sold 7,000t drums cargoes
at $245-250/t fob headed to southeast Asia for July-delivery.
A 3,000t drums cargo was sold from Anzali by rail to China.
On the Iran Mercantile Exchange (IME) Passaged Oil sold
10,000t of pen 60/70 in bulk and drums at 34,209 rial/kg
($182/t) and 44,000 rials/kg ($235/t) respectively ex-Bandar
Abbas excluding terminal handling charges and inspections.
Pasargad Oil sold 7,000t of AC30-AC40 in bulk and drums sold
at 33,040rials/kg ($175.70/t) and 40,500 rials/kg ($215/t) exBandar Abbas, respectively.
Pasargad Oil sold 20,000t pen 60/70 in bulk at 31,643
rials/kg ($168/t) ex-Abadan. Pasargad Oil sold 6,500t at
30,500-32,500 rials/kg from Tabriz and Tehran.
Jey oil settled 20,000t of pen 60/70 in bulk on presales
contracts at 27,248-27,378 rial/kg ex-Esfahan and 5,000t of
pen 60/70 in drums at 36,969 rials/kg ex-Esfahan.
Iran local market
The Oil Refining Industry Association (Orica) increased feedstock prices by 12.5pc in its monthly prices. Demand outstripped supply and competition between bitumen producers
pushed feedstock prices.
Bandar Abbas refinery sold 63,000t VB feed at 29,333rials/kg, up by 4,700 rials/kg ($15/t) week-on-week.
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
Abadan Refinery sold 35,000t VB feed at 25,049 rials/kg,
it settled around 1,070 rials/kg higher than offered price.
Tehran refinery sold 23,000t VB feed at average 28,260
rials/kg, an increase of 1,200 rials/kg.
Esfahan refinery sold 10,000t VB feed at average 27,875
rials/kg, up by 3,800 rials/kg.
Shiraz refinery sold 10,000t VB feed at 26,827-27,787rials/
kg, up around 2,300-3,200 rials/kg week-on-week.
Tabriz refinery sold 8,000t VB feed at original offered
price 26,014 rials/kg, up by 3,400rials/kg.
Domestic demand remained strong as paving activities
continued. Major producers were delivering large volume
for the road ministry and municipalities. Domestic prices
followed in line with the increase in feedstock prices and
3,050t of pen 60/70 sold at 28,615-33,000 rials/kg.
Proposal to clarify Asian bitumen price descriptions
Argus proposes to clarify the description of domestic
bitumen prices in Asia, which are often announced
directly or indirectly by refineries. Argus assesses and
publishes these prices each week, regardless of the frequency at which refineries set domestic prices, based on
information from a variety of sources including refineries and other market participants.
Asian domestic prices are published in both US dollars and in the local currency. Prices for South Korea,
Thailand and Singapore are assessed in US dollars and
converted into local currencies. Prices for India, Indonesia and Japan are assessed in local currencies and
converted into US dollars.
At the same time, Argus proposes to no longer
include trade in trucked product in the Indonesian domestic price assessment, which will be based entirely on
vessel-borne trade under this proposal.
Also under this proposal, Argus will no longer include
fob price information in domestic ex-works assessments.
Argus will accept comments on this proposal up to 10
July 2020. To discuss comments on this proposal, please
contact Asia Asphalt Editor Aabha Gandhi at aabha.
gandhi@argusmedia.com or+6564969933. Formal comments should be marked as such and may be submitted
by email to bitumen@argusmedia.com and received
by 10 July 2020. Please note, formal comments will be
published after the consultation period unless confidentiality is specifically requested.
Page 17 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
Vessel tracking indications
Bitumen freight movements
Vessel name
Owner
Iver Agile
Petrolmar SPA
Poestella
Loading port
Discharge port
Current position
5,765
Livorno
Arinaga, Spain
Med
26-Jun
Bilsea
7,499
Augusta
Sfax, Tunisia
Med
22-Jun
Iver Blessing
Tarbit Shipping
6,189
Klaipeda
Thames, UK
Northwest Europe
25-Jun
Black Shark
Mediterranea di Navigazione
8,476
Huelva
Bayonne, France
Bay of Biscay
24-Jun
Ras Tomb
HYPROC SHIPPING CO
4,999
Tarragona
Algiers, Algeria
Med
22-Jun
Iver Balance
HB Tankship
6,180
Tarragona
Blaye, France
Med
28-Jun
Bithav
Cassiopeia
6,384
Port Jerome
Dublin, Ireland
Northwest Europe
23-Jun
Iver Bitumen
WS Tankship
6,100
Augusta
Naples, Italy
Med
24-Jun
Bit Eco
Tarbit Shipping
9,922
Lomonosov
Klaipeda, Lithuania Baltic Sea
29-Jun
Bitfjord
ABC Maritime
4,900
Brunsbuettel
Kolding, Denmark
Northwest Europe
23-Jun
The Amigo
Ocean Minjian Shipping
Cadiz
Baltimore, USA
Atlantic
Bitflower
Tarbit Shipping
6,314
Rotterdam
Eastham, UK
Northwest Europe
26-Jun
Bituma I
Bituma
4,993
Agio Theodori
Dakar, Senegal
West Africa
26-Jun
Stella Maris
Theodora Tankers BV
4,531
Delfzijl
Thames, UK
Northwest Europe
26-Jun
Ain Zeft
Hyproc Shipping
4,999
Augusta
Algiers, Algeria
Med
28-Jun
Viveka
Blue Round Shipping Corp
9,776
Lome
Dakar, Senegal
West Africa
The Diplomat
Puma
Ningbo
Townsville, Australia
North Pacific Ocean
27-Jun
Tasco Phoenix
Retalink
2,058
Kemaman
Suratthani, Thailand
Riau Archipelago
28-Jun
Taihai 1
Ocean Power Shipping
6,000
Yeosu
Bangkok, Thailand
East China Sea
3-Jul
Ocean Angel
OCEAN SHINE Shipping CO LTD
6,600
Ulsan
Bangkok, Thailand
East China Sea
2-Jul
Lilstella
Bilsea
7,499
Singapore
Jingkou, China
East China Sea
23-Jun
Ulsan
Changjiangkou,
China
East China Sea
25-Jun
Southern Java
29-Jun
JS Lanshan
Jisung Shipping Co., Ltd.
Tonnage
14,911
30,158
5,884
ETA
7-Jul
3-Jul
Jastella
Xiang International Shipping
7,995
Singapore
Freemantle, Australia
Iver Beauty
HB Tankship
6,175
Kemaman
Gresik, Indonesia
Java Sea
23-Jun
Hanyu Empire
Hanyu
6,012
Ulsan
Changjiangkou,
China
East China Sea
24-Jun
Da Peng Wan
COSCOSAS
6,143
Singapore
Beihai, China
Riau Archipelago
28-Jun
FS Bitumen No 2
Simosa Oil Company Limited /
Simosa Shipping
7,769
Singapore
Changjiangkou,
China
Singapore
30-Jun
Hanyu Victoria
Hanyu
7,733
Ulsan
Nanjing, China
Lanshan
23-Jun
Copyright © 2020 Argus Media group
Licensed to: Dean Lew, SHELL INTERNATIONAL BV
Page 18 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
News
India’s bitumen consumption rises
Lindsey bitumen output rebounds after run cuts
India’s bitumen consumption more than doubled from a
month earlier to 571,000t in May as the country started to
ease Covid-19 lockdown measures. But bitumen consumption
was lower by 21.35pc on the year.
Higher production in May supported the increase in
consumption. Production rose by more than 3½ times to
355,000t in May. State-owned refiners began to gradually
increase run rates as demand for transportation fuels picked
up. Refiners operated at around 70-80pc in May and June, up
from 30pc in April.
Imports in May were unchanged from April at 101,000t
but were 26pc lower than in May 2019. Import prices
remained attractive from the Mideast Gulf, encouraging
importers to bring in cargoes. Importers were also offering
huge discounts against domestic prices set by the refineries
to lower the losses incurred from costly inventories in tankages.
Road construction activities halted as India implemented
a nationwide lockdown from 25 March to contain the spread
of Covid-19. India first started to ease the lockdown from 15
April but road construction activities remained stalled. Road
projects undertaken by the National Highway Authority of
India started to pick up as restrictions eased, although the
pace of road works only accelerated from 4 May. Road construction is expected to continue until the end of June when
the monsoon season sets in.
Road works- are expected to remain slow from June until
at least the end of August, because of the monsoon. And the
mass movement of labourers to their villages coupled with
continued tightness of funding may continue to hamper road
works.
Total is gradually raising bitumen production at its 110,000
b/d Lindsey refinery in England, after it cut output and supply of the road paving product in response to falling domestic demand over recent months.
Buyers in the UK have noted reduced bitumen availability from Total, especially this month. But there has been
a significant recovery in road project activity and bitumen
requirements, after sharp falls during April and May because
of Covid-19 government lockdown measures.
“In recent months demand in the UK has dropped and we
have adapted our production levels to reflect this situation,”
Total said. It expects “production levels to return to normal
levels over the summer months”, but without indicating if
the refinery cutbacks also applied to oil products in general.
The firm processes all the bitumen from Lindsey at a
plant at Preston, which is around 225km inland from the
refinery. There, it produces a wide range of finished and
value-added grades for supply to the domestic market. A
Total spokesman said there had been a recent fall-off in
bitumen flows from the refinery to the Preston plant.
UK bitumen demand fell in April to around 50pc of levels
projected for the month prior to the pandemic, with leading
construction firms variously seeing June levels at 80-85pc
and 60pc of pre-Covid-19 projections for this month.
Tupras awards fraction of 3Q bitumen tender
Turkish refiner Tupras has decided to award only a fraction
of the bitumen that it offered under its third-quarter export
tender.
The firm had offered up to 72,000t, made up of one to
Argus successfully completes annual Iosco
assurance review
The Effects of Coronavirus on Markets
> Blog posts
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> and more
View the Argus hub page >>>
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Argus has completed the eighth external assurance
review of its price benchmarks covering crude oil,
products, LPG, petrochemicals, biofuels, thermal coal,
coking coal, iron ore, steel, natural gas and biomass
benchmarks. The review was carried out by professional services firm PwC. Annual independent, external
reviews of oil benchmarks are required by international
regulatory group Iosco’s Principles for Oil Price Reporting Agencies, and Iosco encourages extension of the
reviews to non-oil benchmarks.
For more information and to download the review
visit our website https://www.argusmedia.com/en/
about-us/governance-compliance
Page 19 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
News
two 5,000-7,000t cargoes a month from its 227,000 b/d Izmit
refinery in July-September, and one 30,000t cargo from its
227,000 b/d Izmir refinery in September. But Tupras has
opted to award just one 5,000-7,000t Izmit cargo for loading
during September.
Company officials have declined to comment, and there
are no details yet on the winner of the September cargo.
A belated seasonal surge in Turkish construction activity and domestic bitumen demand following the lifting of
Covid-19 restrictions could be a factor in Tupras withdrawing
the vast bulk of the tender volumes. But there has also been
a resumption of truck flows from Iraq's semi-autonomous
Bespoke projects
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Tupras Izmir refinery to restart in July
Turkish refining company Tupras’ 227,000 b/d Izmir refinery
will restart in July after a complete shutdown since 5 May
because of reduced demand during the Covid-19 pandemic.
Izmir is the least flexible of Tupras' two largest units,
with a Nelson Complexity Index of 7.66, compared with 14.5
for the 227,000 b/d Izmit plant. Tupras probably considered
postponing the restart of Izmir, but the easing of lockdown
measures in Turkey might have boosted domestic products
demand, market participants said.
Diesel demand in Turkey fell by 8pc on the year on 14-20
June, the latest preliminary data published by the energy
ministry showed. Gasoline demand was down by 2pc in the
same period. The drop in diesel demand was as steep as
37pc in the first week of April compared with a year earlier.
Turkey adopted its strictest lockdown measures in April.
Tupras ramped up production at Izmit and its smaller
plants earlier this month, following run cuts in previous
months. Izmir produced 269,000t of diesel and 151,000t of
gasoline in March, data from Turkish energy regulator EPDK
revealed. Jet fuel output by the refinery was at 96,000t,
while bitumen production reached 107,000t.
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Services
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Kurdish region into Turkey after the recent reopening of its
borders with Iran and Iraq, which means Tupras may yet
choose to export its bitumen cargoes during the third quarter on the spot market. Cargo prices in the Mediterranean
have seen strong upward momentum, as have premiums to
fob Mediterranean high-sulphur fuel oil (HSFO).
There is still uncertainty over the timing of a restart of
the Izmir refinery. Tupras said on 30 April that it would be
fully shut from 5 May to 1 July. But some oil product traders
have cast doubt on whether it will restart in July.
The cost of transporting bitumen by truck in Russia was
steady in January-May, amid the suspension of road construction work in April because of Covid-19.
Transport costs at the start of June were little changed
from the end of 2019, according to the national association
of oil products shipping companies (NAPNP), with restrictions on road construction and maintenance in Moscow and
the Moscow region from mid-April to mid-May. But overall
road construction work is expected to remain stable this
year or even increase.
“There were only minor changes to bitumen transport costs, within a 1-2pc range either way, depending on
the company,” one transport company said. The cost of
Page 20 of 21
Issue 20-26
Argus Bitumen
|
Friday 26 June 2020
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Argus Bitumen Methodology
Argus uses a precise and transparent methodology to assess prices
in all the markets it covers. The
latest version of the Argus Bitumen
Methodology can be found at:
www.argusmedia.com/methodology
For a hard copy, please email
info@argusmedia.com, but
please note that methodologies
are updated frequently and for
the latest version, you should
visit the internet site.
MethodoLogy and specifications gUide
road transport in truck trailers over a 100km distance was
Rbs802/t ($11.67/t) on 1 June. For distances of 250km and
500km, costs are Rbs1,363/t and Rbs2,649/t, respectively —
all rates include value-added tax (VAT).
NAPNP represents firms handling about 30pc of dirty
products shipments in western Russia and has been setting
road transport tariffs for bitumen since 2017, adjusting them
at least once a year based on prices from shipping companies. Tariffs cover federal highway tolls and other costs. The
toll increased by nearly 8pc to Rbs2.2/km from February and
is scheduled to rise to Rbs2.35/km from 1 February 2021,
and then track inflation annually from 1 February 2022.
Road transport of bitumen in Russia rose by just over a
quarter in January-April compared with a year earlier, to
1.57mn t, because of mild winter weather, while rail bitumen supplies were up by 57pc to 418,800t — 300,600t for
domestic supply and 118,200t for export. Most exports are
overland because there is limited bitumen handling infrastructure at Russian ports. Russia increased bitumen output
by 31pc on the year to 1.99mn t in January-April, with
Rosneft and Gazpromneft the biggest producers and road
bitumen accounting for almost 90pc of the total.
argUs BitUMen
Contents:
Introduction
Bitumen price assessments
Grades and specifications
Freight assessments
Data collection
Market commentary
Europe bitumen market
Mediterranean bitumen market
Sub-Saharan Africa bitumen market
Europe-Africa cargo freight rates
Asia-Pacific and Middle East bitumen market
Corrections
Currency conversions
Bitumen economics
Specification tables
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Last Updated: janUary 2016
The most up-to-date Argus Bitumen Methodology is available on www.argusmedia.com
www.argusmedia.com
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