Bitumen Market Wavers Alongside World Oil Uncertainty
As monsoon season in some areas is going to diminish in August, approaching typhoon season in other regions in Vietnam, has made the situation complicated for bitumen import expectations.
Having been faced with such a seasonal phenomenon, most importers are confused about upcoming seaborne purchases. As Vietnam’s consumption has decreased in recent quarter, some political issues postponed the implementation of new paving projects. Therefore, we see an increase in inventories which overshadows demand for future seaborne purchases, though many importers preferred to be “focused on taking delivery of their term contract shipments”; Argus said.
Based on local data, the weather is not suitable for road paving and construction in south and central regions so rising in consumption is unlikely as seasonal typhoons also reach the regions next month.
Therefore predictably consumption remains unchanged or weak in September at least in south and central areas considering the coming typhoon season next month.
The situation in the North is better as some participants in the market say: “Demand in Haiphong and north Vietnam is good, and if the weather continues to be good, then demand will improve further in the coming.” Argus quoted.
Singapore, Thailand, Taiwan, and China are the main suppliers of bitumen for Vietnam.
