50USD PMT Iran bitumen price increase comes as a big shock
Iran Bitumen prices increase by nearly 12.00USD/MT on the 21st January . This bitumen prices increase is based on the increase in value of Vacuum Bottom also known as VB which is used to produce high quality road bitumen for export from Iran.
Another factor which has affected bitumen rates is the decline in USD value in Iran from an average of 4,000.00 Tomans per 1.00USD to nearly 3,800.00 Toman. These two forces have increase bitumen prices an average of 15.00USD to 20.00USD/MT from their previous state.
If USD value gains strength in Iran we may see a slight decline in bitumen prices in Iran.
For visiting current bitumen price for more info.
Iran Bitumen prices increase 162,000 Toman in the stock exchange which after taxes will mean a minimum of 50.00USD/MT bitumen price increase in the Iran bitumen market.
The main factors which have played a key role in this price rise in bitumen value includes the high demand for bitumen from Iran by the international bitumen market which includes India, Asia and Africa, the increase in crude oil value and the limitation in the output of crude by OPEC.
While some still hold very little stock of bitumen which they can compromise on its prices and offer lower rates, soon the rates for bitumen 60/70 and bitumen 80/100 once those very minor stocks are depleted, will rise to the expected levels. Bitumen rates can be expected to be at least 300.00USD/MT to 310.00USD on a FOB Bandar Abbas Iran basis in new steel drums of 180 Kg .
Many bitumen buyers will halt their purchase of bitumen and wait to see if the prices of bitumen will come down, however, because OPEC has limited their production of crude, bitumen prices along with crude oil prices will continue to rise.
Let us not forget before the crude oil market crashed Iran bitumen prices were between 400.00USD to 500.00USD/MT. Our prediction is that the prices of bitumen will push upwards to close the gap which has been created in this industry over the last 1-2 years.
Our suggestion to bitumen importers and bitumen brokers, as previously stated in our news section before this price increase is the same. With bitumen prices on the rise investing in your bitumen purchase before bitumen prices rise once again in Iran’s stock exchange will be an investment worth making.