Crude Oil Dip Reshapes Bitumen Supply Chains from Asia to Africa
Global crude oil prices declined during the week of 5–9 May 2025, exerting downward pressure on bitumen markets worldwide. ICE Brent crude prices averaged a $0.74/barrel drop, fluctuating between $61.41 and $63.58 per barrel. This shift impacted supply and demand dynamics across major bitumen-producing and consuming regions.
In Asia, China increased its bitumen output as refiners responded to lower crude costs. While demand in eastern and southern China remained sluggish due to ongoing rainfall and limited infrastructure activity, northern regions showed stronger consumption. South China emerged as a competitive export hub, offering FOB prices between $400 and $415 per ton. These prices undercut traditional suppliers such as Taiwan and Singapore, especially in freight-sensitive markets like Vietnam.
Singaporean exports, meanwhile, faced stiff competition as buyers increasingly favored South Chinese cargoes with lower freight costs. Malaysia maintained a stable bitumen market, with traders anticipating improved demand following the Hari Raya Puasa holiday.
In the Middle East, bitumen prices moved in the opposite direction, rising despite weaker crude values. The increase was driven by regional supply tightness and currency-related challenges. Vacuum bottom (VB) feedstock prices climbed by $10 to $15 per ton, although the broader crude downturn capped further gains.
India’s bitumen demand remained robust, with prices holding at $340–345 per ton FOB BND, even as minor disruptions were reported near the India-Pakistan border due to political tensions. Bahrain’s market also remained steady at $370 per ton FOB Sitra, though planned refinery upgrades in May and June are expected to pause bitumen exports in favor of transport fuel production. In contrast, Iraq saw slight declines in drummed bitumen prices, and Kurdish suppliers were mostly inactive during the period.
Africa displayed a mixed picture. In West Africa, import prices dropped, despite a slight rebound in crude and Mediterranean High-Sulphur fuel oil (HSFO) prices late in the week. Meanwhile, East African markets saw a rise in Iranian bitumen exports, with bulk prices increasing by $1.63 per ton and drummed cargoes by $3.50 per ton. However, ongoing U.S. sanctions continued to complicate trade logistics and payment processes in the region.
In South Africa, imports exceeded local demand due to a combination of public holidays and persistent rainfall. Conditions are expected to improve in second half of May, potentially reviving consumption. The upcoming refinery shutdown in Bahrain may also tighten supply availability across southern African markets in the coming weeks.
