Argus Bitumen (2020-12-11)

Argus Bitumen
Europe, Africa, Middle East and Asia-Pacific prices and commentary

Incorporating Argus Asphalt Report
Issue 20-50 | Friday 11 December 2020
Summary prICES
The spread between European and Asia-Pacific bitumen Bitumen prices at key locations, 5-11 Dec $/t
prices continued to widen, with rising crude and fuel oil Low High ±
values strongly supporting bitumen exports from Singapore,
Export cargo prices fob
South Korea and Iran.
Mediterranean 267.07 271.40 +2.13
Across Europe construction activity and product require-
ments continued to fade, most drastically in key importing Rotterdam 293.20 297.20 +1.80
markets like Romania, while more bitumen-consuming plants Singapore 315.00 325.00 +7.50
were being shut across the continent ahead of the usual fes-
South Korea 295.00 300.00 +15.00
tive season slowdown.
Mideast Gulf 245.00 300.00 +3.50
Mediterranean cargo premiums to fuel oil continued to
decline to lows for the year, as demand in the region carried Delivered cargo prices cfr
on slipping, although outright export prices were supported North Africa Alexandria, bulk 298 308 +1.00
by rising crude and fuel oil values. East Africa Mombasa, drum 380 390 +2.00
The Asia-Pacific bitumen market remained on an up-
West Africa Lagos, bulk 386 396 nc
trend, with prices in Singapore touching a fresh three-month
East China coast 315 383 +12.50
high this week. Tight supply availability, continuing hikes in
crude oil and stronger buying enquiries from key regional Domestic prices
markets supported the market. Antwerp ex-works 358 376 +3.00
Construction activity remained subdued in most of sub-
Southern Germany ex-works 333 352 +2.50
Saharan Africa, while price trends were mixed as Iranian
Hungary ex-works 339 352 +2.50
export prices to east, as well as other, African destinations
rose again. Italy ex-works inc tax 352 364 +3.00
Southern African markets were hit by fresh news of Indonesia ex-works 429 429 +1.00
production issues and supply restrictions from South African Mumbai bulk 353 381 nc
refineries.
Singapore cargo vs Taiwan cargo $/t
Singapore pen 60/70 waterborne Taiwan cargo

350
contents
Key bitumen prices 1
300
Map of waterborne bitumen prices 2
Northwest and central Europe 3-5
250 hh
Mediterranean6-8
200
Sub-Saharan Africa 9-11
Asia-Pacific and Middle East 12-17
150 Vessel tracking indications 18

3 Apr 26 Jun 18 Sep 11 Dec Bitumen news 19-22
Copyright © 2020 Argus Media group Available on the Argus Publications App
Licensed to: Argus Bitumen, ICT Group of Companies - ThreeArc Mining Ltd
Argus Bitumen Issue 20-50 | Friday 11 December 2020
Waterborne BITUMEN prices, fob
Rotterdam
$295/t Italy
$269/t
Greece
Spain
$277/t South Korea
$274/t
$298/t
Taiwan
$310/t
Iran
$245/t
Thailand
Bahrain
$315/t
Ivory Coast $300/t
$364/t
Singapore
$320/t
Cargo Flows
While the US east coast has remained closed to arbitrage 19,000 dwt T Aylin, for discharge into Cadiz, Spain, by 14
cargoes from Europe, two cargoes from the US Gulf coast December, having previously loaded at Aliaga, near Izmir in
emerged, heading to Morocco. Turkey.
The 5,895 dwt The Deputy loaded a cargo from Mobile,
Alabama, for discharge into a terminal at Mohammedia for
Europe and Africa cargo export differentials to HSFO $/t
discharge by 26 December.
Low High ±
The 6,603 dwt San Beato loaded a cargo from Mobile in
Mediterranean, basis Augusta +2.67 +7.00 -3.17
mid-November before making the journey across the Atlantic
towards Morocco, and discharged into Agadir on 9 December. Rotterdam, Netherlands +23.00 +27.00 -2.50
A cross-Mediterranean cargo was loaded aboard the Spain +8.00 +12.00 -5.00
Italy +3.00 +7.00 -2.50
Greece +10.00 +15.00 -2.50
Waterborne markets, differential to HSFO $/t
Ivory Coast +98.00 +102.00 -5.00
Rotterdam Spain
Italy Greece Europe and Africa cargo export differentials to crude
Ivory Coast
200 Differential to Differential to
±
Ice Brent $/t Ice Brent $/bl
150 Mediterranean, basis Augusta -103.82 -5.91 -1.02

Rotterdam, Netherlands -77.85 -1.70 -1.07
100 Spain -98.65 -5.07 -1.31

Italy -103.65 -5.88 -0.91
50 Greece -96.15 -4.66 -0.91

Albania -123.65 -9.12 -0.91
0 Ivory Coast -8.65 9.52 -1.31

10 Jan 20 1 May 20 21 Aug 20 11 Dec 20 Bitumen conversion factor t/bl 6.17 Ice Brent conversion bl/t 7.53
Copyright © 2020 Argus Media group Page 2 of 22

Issue Ref: 183166

Northwest and Central Europe market commentary
Summary Northwest and central Europe bitumen prices, 5-11 Dec

Construction activity and product requirements continued to €/t $/t
fade, most drastically in key importing markets like Roma- Low High ± Low High ±
nia, while more bitumen-consuming plants were being shut
Domestic prices, ex-works
across northwest and central Europe ahead of the usual fes-
Southern UK £/t 280 290 nc 374 388 -0.50
tive season slowdown.
Rotterdam, Netherlands 295 310 nc 358 376 +3.00
With Brent crude futures continuing to rise, breaching
Antwerp, Belgium 295 310 nc 358 376 +3.00
$50/bl for the first time since March, and Rotterdam high-
Northern Germany 290 300 nc 352 364 +3.00
sulphur fuel oil (HSFO) prices also gaining ground, bitu-
Northeast Germany 235 245 nc 285 297 +2.00
men prices were supported, despite weaker demand. Most
domestic and inland export price assessments were stable, Southern Germany 275 290 nc 333 352 +2.50
although domestic and import prices into Romania fell as Southwest Germany 280 295 nc 339 358 +2.50
wintry conditions halted most project work and severely Western Germany 290 300 nc 352 364 +3.00
restricted bitumen demand. Hungary 280 290 nc 339 352 +2.50
The interruption of crude flows through the TAL pipeline Romania 275 290 -10.00 333 352 -9.50
(see news) from Trieste on the northern Italy coast to Ger- Czech Republic 240 250 nc 291 303 +2.00
many, branching off to refineries in Austria and the Czech Export prices, ex-works
Republic, caused by damage to overhead electricity cables Poland-Germany (truck) 230 240 nc 279 291 +2.00
caused by heavy snow falls in the Austrian Alps, did not have
Czech Republic-Germany (truck) 230 240 nc 279 291 +2.00
any noticeable impact on bitumen production and supply to
Poland-Romania (truck) 230 240 -5.00 279 291 -4.00
customers.
Hungary-Romania (truck) 280 290 -5.00 339 352 -3.50
Cargo activity continued to fade because of the usual
Rotterdam (cargo) 293.20 297.20 +1.80
winter slowdown impacting northwest European and Scan-
Domestic prices, delivered
dinavian markets, with freight rates on longer routes into
Thames terminals assessed a tad lower as more gaps ap- Southern UK £/t 295 305 nc 394 408 -0.54
peared in regional bitumen shipping programmes. Brussels 305 320 nc 370 388 +3.00
Rates for 5,000t cargo movements from Klaipeda and La Northern France 365 375 nc 442 455 +3.50
Coruna to Thames were assessed $1/t down at $36-40/t and Central France 365 375 nc 442 455 +3.50
29-33/t respectively, while the Rotterdam-Thames route was
assessed unchanged at $17-20/t. Crude and refined products, 5-11 Dec
Low High Average ±
UK/Ireland Ice Brent minute marker week range $/bl 48.72 50.91 49.54 +1.36
Construction activity has slowed during December, as usual
Fuel oil 3.5%S, fob RMG barge $/t 262.75 276.25 270.20 +4.30
Urals cif Rotterdam $/bl 48.04 50.77 +1.72
Southern UK domestic and Rotterdam domestic $/t Fuel oil straight-run 0.5% fob cargo $/t 352.00 374.50 +16.62
Fuel oil straight-run M-100 cif cargo $/t 278.25 290.75 +3.75
Southern UK domestic Rotterdam domestic
450 Vacuum gasoil 0.5%S cif cargo $/t 352.25 376.50 +15.75
400 Northwest Europe cargo freight rates $/t

Low High ±
350
Rotterdam-Thames 17 20 nc
hhhhhhhhhhh
Hamburg-Thames 21 24 0
300
Klaipeda-Thames 36 40 -1
250 La Coruna-Thames 29 33 -1
200
3 Apr 26 Jun 18 Sep 11 Dec

for the time of year, but there was still some project work Availability of bitumen was more of a concern in north-
underway across the country, as there was in Ireland, gener- ern and central France than the south, given the lack of
ating modest bitumen requirements. production and flows from Total's 93,000 b/d Grandpuits
Domestic UK prices were assessed unchanged at £280- refinery near Paris and its 222,000 b/d Donges refinery on
290/t ex-works and £295-305/t delivered into southern the French Atlantic coast. The latter is expected to remain
England destinations, while cargoes delivered into Thames shut for several months, having been halted on 30 November
terminals were indicated in the $310-315/t (£235-240/t) cfr because of poor economics, while the only bitumen flows ex-
range. pected by buyers from Grandpuits will be from stock until its
The 4,995 dwt Bituma shipped a cargo from Rotterdam to permanent shutdown during the first quarter of next year.
Belfast for 13 December arrival, while the 4,900 dwt Bitfjord Truck flows into northern France from the 301,000 b/d
moved a cargo from Port Jerome, northern France, to Dub- Miro refinery in Karlsruhe, southwest Germany, returned
lin, also for 13 December arrival. to normal in the week ending 11 December after previous
The 9,922 dwt Bit Eco was still scheduled to make one limitations in bitumen production.
last delivery this year into a separate Dublin terminal oper- Bitumen availability was significantly better in southern
ated by an Irish construction company, with that cargo to France, mainly because of a steady flow of cargoes into
be loaded at the La Coruna export terminal on the Spanish import terminals there, as well as normal operations over
Atlantic coast in mid-December. The tanker is expected to recent months at Total's 105,000 b/d Feyzin refinery near
arrive in La Coruna on 16 December after an anticipated Lyon.
shipment on board the Bit Eco from Rotterdam to Eastham, The 5,897 dwt Iver Accord delivered a cargo into the
northwest England. Colas terminal at Blaye, southwest France, on 10 December.
The cargo was loaded at the Agio Theodori export terminal
France in Greece.
French domestic prices were assessed unchanged at €365-
375/t delivered in northern and central France and €345- Benelux
360/t delivered in southern France. Road and roofing sector activity continued to slow down as
Bitumen suppliers pointed to still significant rates of wet and cold weather at the start of the winter seasonal
project activity and in many parts of the country as road slowdown continued to take their toll, resulting in the
and other project work was being completed before the gradual halt to bitumen-consuming plants in Belgium ad the
Christmas/New Year holiday period. While market partici- Netherlands.
pants said bitumen demand had been higher during Decem- The supply position improved as Shell completed main-
ber than is usual for the winter month, some companies tenance work on a crude distillation unit at its 420,000 b/d
running bitumen-consuming plants have already shut their Pernis refinery in Rotterdam (see news). There was no con-
French plants for their usual winter maintenance work. firmation yet that bitumen operations at the HES terminal
in Botlek, used by Shell, had restarted after an issue had
halted truck and cargo loadings in early-December.
Germany: North vs South $/t
Lack of export cargo business from Rotterdam and Ant-
Northern Germany Southern Germany werp, with the westbound transatlantic arbitrage remaining
320 shut, continued to place downward pressure on Rotterdam
310 cargo premiums to fob Rotterdam HSFO barges, with as-
sessed premiums $2-3/t down at around $25/t.
300
Domestic price assessments held steady in the €295-310/t
290 ex-works range.
hhhh
280
Germany
270
Construction activity was quickly slowing to a crawl for the
260 winter period, with refinery availability more than sufficient
250
to meet any customer requirements.
3 Apr 26 Jun 18 Sep 11 Dec Initial concerns over any impact on production because

of the interruption to TAL crude pipeline supplies into key €275-290/t ex-works. Romanian refiner Rompetrol was selling
German refineries were being allayed by 11 December, when its truck volumes from its Vega refinery in Ploiesti at €277/t
the pipeline operator confirmed operations had restarted. ex-works for buyers willing to make prompt payments and
The pipeline feeds the 301,000 b/d Miro refinery in Karl- €287/t for those seeking 30 days credit. The firm was looking
sruhe and Bayernoil's 210,000 b/d Neustadt-Vohburg refinery to clear stocks at the refinery before a winter maintenance
in Bavaria. While initial concerns over an impact on Miro shutdown set to begin in the week commencing 14 Decem-
refinery bitumen production and supply quickly eased, the ber and to last until March.
Bavarian refinery had anyway been planning to stop bitumen Cargo import activity was also curtailed by poor demand,
production from 10 December, with stocks easily sufficient with no fresh tanker deliveries into Romanian Black Sea
to keep customers supplied over the next few weeks. Anoth- terminals. The rate of truck flows from Poland and Hungary
er German refiner was planning for low bitumen production was also in decline, with Polish and Hungarian exports to
during January and to use up its stocks to meet demand. Romania assessed €5/t weaker at €230-240/t and €280-290/t
Domestic price assessments were stable across German ex-works respectively. Some truck volumes from Austrian re-
regions, even though occasional offers of limited truck vol- finer OMV were being offered into Romania at around €260/t
umes were being offered at lower prices. ex-works.
Truck export offers from the Nis Pancevo refinery in Ser-
Poland/Czech Republic bia were indicated as low as €265/t ex-works, while Lukoil's
Demand in Poland and the Czech Republic was slowing as Burgas refinery in Bulgaria was indicated as having few avail-
the winter holiday period approaches, while refiners like Or- able volumes that were on offer around €310/t ex-works.
len had yet to indicate dates for their usual winter bitumen Hungarian domestic prices were assessed unchanged at
unit maintenance halts. €280-290/t ex-works.
Domestic bitumen values in the Czech Republic were
assessed unchanged at €240-250/t ex-works, while Polish Hungary and Romania domestic $/t
domestic prices were indicated around €240/t ex-works.
Hungary domestic Romania domestic
Flows of Czech product to Germany were thin, as some truck 400
volumes were diverted to customers in Poland during the
maintenance shutdown of Orlen’s Trzebinia plant in southern 375
Poland. Czech and Polish truck exports to Germany were
both assessed unchanged at €230-240/t ex-works. 350
Lotos’ Jaslo plant in southern Poland was understood to hhhh
be planning a maintenance shutdown that will start before 325
the year-end.
300
Hungary/Romania/Balkans
Demand in Romania and the Balkans succumbed to cold and 275
3 Apr 26 Jun 18 Sep 11 Dec
snowy weather, with regional suppliers cutting prices, with
one firm saying it was only able to supply just one truck-load
to its customers because of minimal appetite for bitumen.
Romanian domestic prices were assessed €10/t down at

Mediterranean market commentary
Summary Mediterranean price index $/t

Bitumen cargo premiums to fuel oil continued to decline Low High ±
as regional demand slipped further, with winter season
Mediterranean fob (Augusta) 267.07 271.40 +2.13
conditions taking hold and limiting activity, although crude
Differential to HSFO 2.67 7.00 -3.17
and high-sulphur fuel oil (HSFO) gains kept outright bitumen
prices little-changed.
Mediterranean bitumen prices, 5-11 Dec
Italian and Greek cargo premiums to fob Mediterranean Local currency/t $/t
HSFO cargoes were assessed $2-3/t down at $3-7/t and $10- Low High ± Low High ±
15/t fob respectively, while Spanish premiums were assessed
Domestic prices, ex-works
$5/t down at around $10/t. Delivered cargo premiums into Italy, including tax 290 300 nc 352 364 +3.00
Moroccan terminals were indicated in the $40-45/t range, Southern France (delivered) 345 360 nc 418 436 +3.00
with the pressure on Mediterranean supplies and cargo val- Northeast Spain 365 375 nc 442 455 +3.50
ues underlined by reverse arbitrage cargo movements into Southwest Spain 365 375 nc 442 455 +3.50
Morocco from the US. Izmit, Turkey 2,798 2,798 +87.00 357 357 +10.00
Algerian state-owned Sonatrach had yet to finalise its Izmir, Turkey 2,798 2,798 +87.00 357 357 +10.00
Batman, Turkey 2,837 2,837 +87.00 362 362 +10.00
2021 import tender, the issuing of which could be delayed
Kirikkale, Turkey 2,837 2,837 +87.00 362 362 +10.00
into January, while Portuguese refiner Galp was so far un-
Export prices, fob $/t Differential to HSFO
able to reach agreement with suppliers and award its tender
Italy +3 +7 -2.50 267.40 271.40 +2.80
for 2021 exports from its Viana do Castelo terminal. Greece +10 +15 -2.50 274.40 279.40 +2.80
The decline in cargo activity led to a further slippage in Spain +8 +12 -5.00 272.40 276.40 +0.30
freight rates for 5,000t cross-Mediterranean cargo move- Albania -17 -13 -2.50 247.40 251.40 +2.80
ments, with shorter journeys seeing assessed declines of Delivered cargo prices, cfr
$1/t, while longer routes witnessed $2/t losses that were Alexandria, Egypt 298 308 +1.00
also also assessed for Tarragona to Mohammedia that slipped Gebze-Mersin, Turkey 296 306 +1.00
Ghazaouet, Algeria 292 302 -1.00
to $24-28/t.
Rades, Tunisia 288 298 +2.00
Economics Mid ±
Algeria/Morocco Bitumen’s value as a fuel oil blendstock $/t 237 +2.40
Poor weather conditions continued to take a toll on paving
activity in many parts of Algeria and Morocco, while 2021
tender requirements by Algerian state-owned Sonatrach Crude and refined products, 5-11 Dec
were yet to be issued. Low High Average ±
Discussions for the annual import tender by Sonatrach Fuel oil 3.5% 0.998 fob 256.75 271.25 264.40 +5.30
were underway with its usual suppliers, but neither the size Basrah Light fob Sidi Kerir 47.74 50.83 +2.18
Urals Med Aframax 48.74 51.12 +1.59
Iran Heavy fob Sidi Kerir 44.37 46.75 +1.59
Italy domestic and Mediterranean HSFO fob cargoes $/t VGO 0.5% west Med cif $/t 348.75 374.75 +12.25
Italy domestic HSFO Med

400
Mediterranean cargo freight rates $/t
Low High ±
300
Augusta-Mohammedia 36 39 -2
Tarragona-Mohammedia 24 28 -2
200 Augusta-Alexandria 30 33 -2
Augusta-Tunis-Rades 18 21 -1
100 Livorno-Tunis-Rades 22 25 -1
Tarragona-Gazaouet 21 24 -1
Aspropyrgos-Corinth-Agio Theodori-Gebze-
0 23 26 -1
Mersin
3 Apr 26 Jun 18 Sep 11 Dec Aspropyrgos-Corinth-Agio Theodori-Alexandria 24 28 -2

of next year's required volumes, nor the exact pricing of Spain/Portugal

those flows were yet to be determined before a tender can Spanish cargo premium values were assessed $5/t down
be issued. There was also still uncertainty over what portion at around $10/t versus fob Mediterranean HSFO cargoes as
of the supply will be agreed on a fob as opposed to deliv- regional export demand continued to fall.
ered basis into Sonatrach's Algerian terminals. That in part Spot activity remained thin with little firm interest from
depended on the outcome of a tender issued by Sonatrach north African buyers for cargoes, although cargo sales into
shipping arm Hyproc to take a 5,000-7,000 dwt tanker on west Africa were being discussed. There were still no arbi-
time charter for one year, with an option for a further year, trage export sales or profitable openings to the Americas,
starting from January 2021. with the last US-bound cargo having been moved from Spain
Heavy rain across northern Algeria, as well as snowfall in September, reflecting high US stocks and low demand in
in parts of the region, has significantly slowed the pace of the midst of the Covid-19 pandemic.
activity, with estimates for December bitumen consumption Portuguese refiner Galp had yet to award its 2021 export
in Algeria at just 30,000-40,000t. tender, which had closed on 30 November and been valid
Persistent rainfall in northern Morocco was also hamper- until 7 December, as the supplier's price ideas for the first
ing road project activity, in stark contrast to the southern and fourth quarter cargoes on offer were far apart from
parts of the country that remained warm and dry. bid values, pushing the tender process into a second round.
Moroccan importers received two cargoes from the US in The restriction on size of Galp cargoes - with the tender as
a reversal of the traditional westbound arbitrage from the usual specifying 4,000t cargoes - as well as the tendency for
Mediterranean to the US, reflecting weak US demand and Galp supplies to be of relatively hard grades that are usually
adding to supply and price pressures in the Mediterranean. blended up by international oil companies and trading firms -
The 5,895 dwt The Deputy loaded a cargo from Mobile, are factors keeping a lid on price ideas.
Alabama, for discharge into a terminal at Mohammedia by Domestic bitumen prices in Spain were assessed un-
26 December, while the 6,603 dwt San Beato also loaded a changed at €365-375/t ex-works for road paving grades.
cargo from Mobile and discharged into Agadir on 9 Decem- Export capacity for trucks has remained difficult as refiners
ber. in the country have focused any production into satisfying
Delivered values for cargoes into Morocco were indicated domestic demand, followed by cargo demand, while cross-
at $40-45/t premiums to fob Mediterranean HSFO cargoes, border truck flows have in recent months seen little activity.
with the $45/t level understood to have been awarded by Cargo flows into France continued from Spanish ports,
an independent Moroccan importer into its Mohammedia with the 6,180 dwt Iver Balance loading a cargo from Huelva
terminal to an international trading firm. That cargo is to be for discharge into Bayonne on the French Atlantic coast by
delivered on 20-25 December dates. 13 December.
Egypt
Italy domestic less bitumen fuel oil blendstock value $/t
State-owned EGPC continued to rely on its own refinery
production, and on deferred imports from previous months, 200
to meet domestic demand that was in any case falling amid
175
the usual winter season conditions.
After forgoing any import tenders in November and De- 150
cember, and cancelling a two cargo tender for early-January
delivery into its Alexandria terminal, EGPC was so far con- 125
tent to meet Egyptian requirements from its own refinery
production. Its 115,000 b/d refinery in Alexandria was still 100
understood to be producing around 1,200 t/day of bitumen.

75
The 30,000 dwt bitumen tanker, The Diplomat, departed
Alexandria after making a delivery and was sailing towards 50
the Turkish export terminal at Aliaga. 3 Apr 26 Jun 18 Sep 11 Dec

Italy kets looking more attractive through to the first quarter of

Italian bitumen cargo premiums to fob Mediterranean HSFO 2021.
cargoes were assessed $2-3/t down at around +$5/t on a fob There were no clear indications of cargo offers yet from
basis, with Eni flows indicated at much lower premiums that Hellenic Petroleum's 140,000 b/d Aspropyrgos refinery,
those from Augusta, Sicily. although some truck volumes were being offered into Balkan
The winter downturn in regional demand has helped pull markets and Romania from the refinery that was restarted
down Italian cargo values, with wintry weather also cutting in November. Those offers were indicated at $25/t premiums
domestic requirements for road paving work. to cif Mediterranean HSFO cargoes, ex-works Aspropyrgos.
No cargo movements were seen leaving Eni’s 40,000t/ Truck flows to Romania from Thessaloniki were indicated at
month bitumen producing Taranto refinery terminal in the €285-290/t ex-works, with some Balkan-bound volumes from
week ending 11 December. The refinery has approximately Thessaloniki offered at €305/t ex-works.
25,000t of bitumen storage capacity and is mostly used to The 12,980 dwt Da Ming Shan loaded a cargo from Mo-
supply cargoes for export, and it also has the capacity to tor Oil Hellas’ terminal at Agio Theodori, for a ship-to-ship
blend and meet certain specifications for the domestic Ital- transfer off Malta, while the 6,189 dwt Iver Blessing moved a
ian markets in the south. cargo from Agio Theodori to Oran, Algeria, for 13 December
The 6,115 dwt Ping Hai Wan loaded a cargo from Augusta, delivery. Greek bitumen flows to Algeria are far less com-
Sicily, for discharge into Skikda, Algeria, on 11 December. mon than those from Spain or Italy. Motor Oil Hellas supplied
Domestic truck prices in Italy were assessed unchanged some contractual cargoes to Algerian firm Sonatrach in the
at €290-300/t ex-works, including the €31/t domestic duty summer.
for road paving penetration grades.
Turkey
Greece Tupras’ 19,000 dwt bitumen tanker, the T Aylin, loaded a
Greek cargo premiums to fob Mediterranean HSFO cargoes cargo from Aliaga for discharge into Cadiz, Spain, the second
were assessed $2-3/t down at $10-15/t on a fob basis, as such movement since October on the refiner’s own vessel,
requirements into usual outlets like Egypt and the Black Sea and the sixth movement this year to Puma Energy’s 60,000t
faded rapidly. storage facility at Cadiz.
While west African markets offer potential alternative The Turkish firm's domestic posted truck supply prices
outlets for Greek winter surpluses during the current peak were raised by TL87/t to TL2,798/t ex-works Izmir and Izmit
dry season period in west Africa, such requirements have and to TL2,837/t ex-works Kirikkale and Batman. The rise in
been limited so far, with Mideast Gulf and Asia-Pacific mar- dollar terms for the ex-works truck loadings was $10/t.

SUB-SAHaRAN africa market commentary
Summary Sub-Saharan Africa bitumen prices, 5-11 Dec

Construction activity remained subdued in most parts of Local currency/t $/t
sub-Saharan Africa, while price trends were mixed as Iranian Low High ± Low High ±
export prices to east, as well as other, African destinations Domestic prices, ex-works
rose again. South Africa 5,300 5,600 nc 352 372 +5.50
West African activity and bitumen demand remained Import/export prices $/t
below usual levels for the current peak season period, while Ivory Coast, fob Abidjan (export, cargo) 362 366 +0.30
most east African countries have already begun a December- Nigeria, cfr Lagos (import cargo) 386 396 nc
January seasonal slowdown. Southern African markets were Ghana, cfr Takoradi-Tema (import, cargo) 383 393 nc
hit by fresh news of production issues and supply restrictions Kenya, cfr Mombasa (import, drums) 380 390 +2.00
from South African refineries. Tanzania, cfr Dar es Salaam (import, drums) 380 390 +2.00
Freight rates $/t
West Africa Abidjan-Lagos-Warri-Port Harcourt (cargo) 35 39 nc
Prices for cargo imports into west African terminals showed Abidjan-Takoradi-Tema (cargo) 21 26 nc
little clear direction, as gains in fob Mediterranean high-sul- Tarragona-Lagos-Warri-Port Harcourt (cargo) 100 115 nc
phur fuel oil (HSFO) prices were countered by $5/t assessed Bandar Abbas-Jebel Ali-Mombasa (drums) 73 77 -2.50
losses in Spanish and Ivory Coast premiums to those values. Bandar Abbas-Jebel Ali-Dar es Salaam (drums) 73 77 -2.50
Bandar Abbas-Jebel Ali-Djibouti (drums) 90 95 -2.50
Spanish cargo premiums to the Mediterranean fuel oil
values were assessed $5 down at around $10/t fob, while
Mideast Gulf to Africa freight rates $/t
Ivory Coast export premiums were also assessed $5/t lower
Low High ±
at $100-105/t fob basis Abidjan.
Construction activity remained fairly busy, but still not Bandar Abbas/Jebel Ali-Mombasa (drums) 73 77 -2
at levels usually expected for the current dry season peak Bandar Abbas/Jebel Ali-Dar es Salaam (drums) 73 77 -2
period in key markets, principally Nigeria. Bandar Abbas/Jebel Ali-Djibouti (drums) 90 95 -2
Ghana remained a notable regional exception, continuing

to draw in cargoes into the country's Takoradi terminal, with
a fresh shipment moving there from Abidjan, Ivory Coast, in
the first week of December. 6 December on board the 9,776 dwt Viveka that had been
Mideast Gulf traders were seeking to put together loaded in Lome, Togo.
sizeable bitutainer volumes for shipment to west African Drummed freight rates from Bandar Abbas, Iran, to west
destinations, most notably Douala, Cameroon, during the African terminals like Douala were indicated at $190/t, with
course of 2021. A bulk cargo was delivered into Douala on cfr Douala values for Iranian drummed imports indicated at
$530-540/t.
Asphalt del West Africa and fuel oil fob Med $/t Nigeria
The rate of construction work proceeded steadily across
West Africa waterborne, cfr Med HSFO Nigeria, but not at the usual peak dry season levels, with
500
cargo deliveries into Nigerian terminals also remaining below
400
usual flow levels.
That contributed to a further drop in the country's bitu-
300 men inventories. The latest data released by Nigeria's Petro-
hhhhhhhhhhh
leum Products Pricing Regulatory Agency (PPPRA) showed
200 stocks dipped to 6,050,972 litres (6,168t) on 10 December
from 7,853,515 litres (8,005t) a week earlier. That level was
100 itself down sharply from 12,694,470 litres (12,940t) in late-
November and compared with 16,665,795 litres (16,988t) on
0 16 November.
3 Apr 26 Jun 18 Sep 11 Dec The 11,406 dwt Biskra arrived with a part-cargo at the

Asca terminal in Sapele on 10 December, having discharged 3,890/t ($664/t). Cargo deliveries into Ghana were indicated
its first part-cargo into the firm's sister terminal in Port Har- in the $390-400/t cfr range.
court in Nigeria's Rivers state. The 14,634 dwt The Amigo,
which had previously discharged part cargoes into the Lobito East Africa
and Luanda terminals in Angola, looked to have followed Drummed Iranian bitumen export prices were assessed $5/t
that up with a further part-cargo delivery into the Warri firmer at $305-315/t fob Bandar Abbas, adding to hefty re-
terminal in Nigeria. cent gains driven by international crude and fuel oil.
In a progress report issued on 5 December, Nigeria's Repeated hikes in domestic Iranian prices for vacuum
Federal Ministry of Works and Housing said work had been bottoms, used as the feedstock for Iran's bitumen-producing
underway during November on reconstruction of Section 1 refineries, have driven the bitumen price gains. The price
of the Abuja-Kaduna-Zaria-Kano Road. The work involved surge, with offers reported in the $305-325/t fob Bandar
asphaltic binder and asphaltic wearing courses, in each case Abbas range, was making it increasingly difficult for suppliers
with use of polymer-modified bitumen (PMB). into both east and west African markets to conclude sales.
A drop in import demand into east African terminals led
Ivory Coast/Ghana to a $2-3/t fall in drummed freight rate assessments from
The 4,900 dwt SMB time-chartered San Biagio moved a Bandar Abbas to Mombasa, Kenya, and Dar es Salaan, Tan-
second consecutive cargo from the firm's Abidjan refinery zania, to around $75/t, with some players indicating values
and terminal complex to Takoradi, Ghana, arriving there on around $70/t ($1,400 per container) and others as high as
6 December. $80/t.
That cargo followed the 30 November arrival of the
previous SMB shipment into Takoradi on the same tanker, Kenya/Tanzania/Uganda
reflecting and feeding buoyant road construction activity in Kenyan domestic truck prices have only inched up over the
Ghana over the past few months in the run up to the coun- past few weeks amid reluctance on the part of Chinese con-
try's general elections that were held on the 5-6 December tractors and other end-users to buy bitumen at prices that
weekend and were won by incumbent President Nana Akufo- would reflect the sharp gains in Iranian export prices since
Addo. mid-November.
The most recent cargo delivery was into Shell licensee The main domestic buying in Kenya was still being made
Vivo Energy's Takoradi terminal after the previous delivery by local dealers looking to stockpile volumes before seasonal
into Total's Takoradi terminal. Vivo, which had been report- activity resumes again in February, with December and
ed by local buyers to have no truck availability in mid- to January traditionally weak road construction activity months
late November into Ghanaian buyers, was able to offer vol- in the country.
umes since the fresh cargo. Prices for Vivo truck supplies of Mombasa-based trading and supply firm Skytrade was
AC10 and AC20 bitumen grades were indicated at Ghana cedi indicated selling into the local market at Kenyan Shillings
53.5/g ($480/t) ex-works for bulk road tanker volumes and
KES 52/kg ($466/t) ex-works for second-hand drums. Local
Tanzania, cfr Dar es Salaam drums $/t
sellers of bitumen in new steel drums were offering their
400 volumes at KES 53-54/kg.
There was no sign yet that Skytrade was to make a
second bulk cargo shipment from the Mideast Gulf to the
350
firm's Mombasa bulk terminal, with any such delivery now
not expected by market participants before the new year.
300 Iranian bulk cargo export prices were assessed $7-8/t up at
$240-250/t fob Bandar Abbas.
While Ugandan general elections are to be held in Janu-
250
ary 2021, regional market participants said disorder and
instability ahead of the poll was in fact helping to slow
200 down project activity. Some bitumen import orders - usually
3 Apr 26 Jun 18 Sep 11 Dec delivered from Kenyan terminals and depots - and financial

transactions linked to them were understood to have been That effort was complicated by news that the bitumen-
deferred by at least a week in certain cases. producing propane de-asphalting unit (PDU) at the 180,000
Tanzanian elections were held at the end of October, b/d BP-Shell Sapref refinery in Durban would be shut from
with incumbent President John Magufuli winning re-election. 14-20 December (see news), following a fire-related shut-
Regional suppliers expect sizeable bitumen import require- down at Engen's 105,000 b/d Durban refinery.
ments into the country during 2021, mainly linked to proj- There was no sign of an early restart at that refinery. In
ects financed at least in part by the World Bank. a statement issued on 11 December, Engen said: “All refinery
process units have been safely shut down in order to ensure
Southern Africa that the plant remains completely safe while investigation
Regional supply was further hit by fresh issues impacting into the root cause of the incident takes place.”
South African refineries, while any effort to turn to alterna-
tive Iranian drummed or bitutainer supplies was complicated
South Africa $/t
by rising prices for those flows.
The Zambian market continued to draw on South African 375
suppliers for bitumen supplies, but the production problems
350
and shutdowns in South Africa meant those refiners were
prioritising sales to domestic buyers over meeting demand in 325
regional export markets.
300
South Africa
Mounting issues at South African refineries considerably 275
tightened bitumen supply, although the immediate con-

250
sequences of that are likely to be moderated by the usual
planned halt to project activity during the Christmas/New 225
Year break. 3 Apr 26 Jun 18 Sep 11 Dec
While that festive season industry holiday period will run
from 16 December through to the week ending 8 January,
the week ending 11 December continued to witness strong
buying by local construction companies and trading and sup-
ply firms looking to replenish stocks before seasonal activity
resumes.

Asia-Pacific and Middle East Market Commentary
Singapore Asia bitumen prices, 5-11 Dec

In Singapore, bitumen prices continued to trend higher and Local currency/t $/t
touched the highest since late-August. Tight availability Low High ± Low High ±
and firmer demand from regional buyers spurred prices to Domestic prices, ex-works
around $320/t. South Korea 412,919 434,651 -6,077.0 380 400 nc
On a fob Singapore basis, selling indications were seen Mumbai, India 26,019 28,119 nc 353 381 nc
in the $315-325/t range for January-loading cargoes. A Mumbai, India
28,519 30,519 nc 387 414 +1.00
(drums)
Singapore-based trader was negotiating a 5,000t mid-Janu-
Thailand 11,438 13,094 -59.0 380 435 nc
ary loading cargo at $315/t fob Singapore, headed to south
Indonesia 6,060,000 6,060,000 nc 429 429 +1.00
China. Singapore 468 492 nc 350 368 nc
Buying indications were limited on a fob basis, but en- Singapore-Malaysia
468 481 nc 350 360 nc
quiries were ample from buyers in south China, Singapore, ex-ref
Japan 34,513 42,619 nc 331 409 nc
Malaysia, Indonesia and Vietnam. Traders were also seeking
Waterborne, fob
cargoes to bring down to Australia, but offers were limited
Iran 240 250 +7.50
overall. Iran (drums) 305 315 +5.00
The uptrend in prices continued on the back of limited Bahrain 113 113 nc 300 300 nc
availability of spot cargoes. There were delays in delivery Singapore 421 434 +10.00 315 325 +7.50
of a cargo to a buyer in south Vietnam, while other buyers Singapore (drums) 568 581 +9.50 425 435 +7.50
reported that there were hardly any spot offers available. Thailand 9,331 9,632 +181.0 310 320 +7.50
Production in Singapore remained reduced on the back South Korea 320,555 325,988 +11,897.0 295 300 +15.00
Taiwan 8,640 8,866 +172.5 306 314 +9.00
of a cut in operating rates by a key refiner in December and
Waterborne, cfr
January. The uptick in bitumen prices in recent weeks has
North China coast 2,026 2,092 +89.5 310 320 +15.00
widened the spread with fuel oil, but producers continued to
East China coast 2,059 2,503 +71.5 315 383 +12.50
cite eroded margins for maintaining reduced production. South China coast 2,255 2,353 +39.0 345 360 +7.50
Another key refiner could be making plans for a restart Northern Vietnam (drums) 348 458 +6.00
in the first or second quarter of 2021, but there was no Southern Vietnam (drums) 343 448 +6.00
confirmation. Economics Mid ±
Tank truck prices from Singapore to Malaysia were un- Bitumen’s value as fuel oil blendstock, Singapore 275 -1.57
changed this week. Deals were mostly concluded at $355/t Asian Bitumen Price Index
levels, with one trader purchasing at $360/t for the purpose Index ±
of blending. Other buyers in Malaysia cited buy-sell indica-
ABX 1 fob Singapore 320.00 +7.50
tions in the $350-360/t range. ABX 2 fob South Korea 297.50 +15.00
Monthly Average (contract)

Contract Nov 20 Oct 20
Singapore pen 60/70 and HSFO cargoes $/t
ABX 1 291.25 285.30
Singapore pen 60/70 waterborne ABX 2 269.38 276.00

Singapore HSFO 180cst Fob Mideast Gulf Price
400
Low High ±
350
Mideast Gulf fob ($/t) 245.00 300.00 +3.50
300
Crude and refined products, 5-11 Dec
250 hh Low High ±
200
Dubai fob Dubai $/bl 48.04 50.26 +1.28
150 Basrah Light fob Basrah $/bl 50.07 50.98 +0.56
100 Banoco Arab Medium $/bl 48.42 50.40 +1.67

Fuel oil HS 180cst fob Singapore $/t 289.50 296.25 +0.75
50 Fuel oil HS 380cst fob Singapore $/t 285.00 291.75 -2.38
3 Apr 26 Jun 18 Sep 11 Dec Gasoil 0.5% fob Singapore $/bl 51.75 54.30 +1.43

Prices at China main refineries, 5-11 Dec

Contract Posted Contract Posted
Area Province Refinery Grade ± ±
price Yn/t price Yn/t price $/t price $/t
Northwest Xinjiang Petrochina Karamay AH-70, AH-90, AH-110, AH-130 3,900 nc 4,300 nc 597 658
AH-100, AH-140, AH-180 3,750 nc 4,050 nc 574 620
Sinopec Tahe 90-A 3,050 +150 3,230 +150 467 494
90-B 2,900 +150 3,180 +150 444 487
Northeast Liaoning Petrochina Liaohe AH-70, AH-90, AH-110, AH-100, AH-140 1,375 nc 1,775 nc 210 272
Panjin Northern AH-90, AH-110, AH-100, AH-140 3,000 nc 3,650 nc 459 558
North Hebei Petrochina Qinhuangdao AH-70, AH-90 3,200 nc 3,700 nc 490 566
Central Henan Sinopec Luoyang AH-90 3,030 +150 3,090 +150 464 473
East Shandong CNOOC asphalt AH-70, AH-90 3,380 nc 3,700 nc 517 566
Sinopec Qilu 70 -A 3,200 +150 3,430 +150 490 525
90 -A, 70-B 3,200 +150 3,430 +150 490 525
90-B 3,000 +150 3,380 +150 459 517
Zhejiang Sinopec Zhenhai 70-A, 90-A 2,920 +150 2,990 +150 447 457
70-B, 90-B 2,920 +150 2,990 +150 447 457
Petrochina Wenzhou AH-70, AH-90 2,840 nc 3,230 nc 435 494
Shanghai Sinopec Shanghai AH-70 3,250 +150 3,390 +150 497 519
Jiangsu CNOOC Taizhou AH-70, AH-90 3,450 nc 3,600 nc 528 551
Sinopec Jinling 70-A, 90-A 3,150 +150 3,230 +150 482 494
Petrochina Xingneng 70-A, 90-A 3,170 nc 3,540 nc 485 542
Jangyin Alpha 70-A, 90-A 3,130 nc 3,450 nc 479 528
South Guangdong Sinopec Maoming 70-A, 90-A 3,030 +150 3,100 +150 464 474
Sinopec Guangzhou 70-A, 90A 3,090 +150 3,150 +150 473 482
Petrochina Gaofu AH-70, AH-90 3,610 nc 3,780 nc 552 578
West Sichuan CNOOC Luzhou AH-70, AH-90 3,800 nc 3,800 nc 581 581
Bitumen freight, 5-11 Dec $/t

ket sources pointed to ongoing roadwork projects and swift
Singapore-east Australia 110 120 nc
daily movement of volumes. This is typical with roadwork
Singapore-west Australia 70 75 nc
contractors rushing to complete budgets before the end of
Singapore-Gresik, Indonesia 25 29 nc
the fiscal year.
Singapore-south China 30 35 nc
Singapore-east China 50 58 nc
Meanwhile, a slowdown in demand and paving activities
Thailand-south China 40 45 nc is expected as the year-end holiday period approaches.
Thailand-east China 35 40 nc Local supply from a seller in Tanjung Langsat was lim-
Thailand-east Australia 120 125 nc ited, while two other refiners in Malaysia were still able to
Thailand-west Australia 70 75 nc supply cargoes at a steady pace.
Taiwan-Ho Chi Minh, Vietnam 35 38 -0.5 The 36,681 dwt Palanca Miami has discharged bitumen
Taiwan-Haiphong, Vietnam 30 33 nc into Tanjung Langsat port on 10 December.
South Korea-east China 20 25 nc
South China-Haiphong, Vietnam 25 30 nc
Thailand
In line with the regional price direction, Thai export prices
Looking ahead, prices for tank trucks are also expected were assessed $5-10/t higher at $310-320/t fob Thailand.
to come under upward pressure in line with the hikes in fob A Thai trader pointed to domestic demand which has
Singapore prices. picked up slightly just ahead of the year-end holiday.
It is not expected to have much January-loading cargoes
Malaysia to offer if domestic demand remains strong.The refinery
Demand remained firm in Malaysia across the country. Mar- typically exports less than five cargoes each month.

The refinery’s estimated 2021 production is to remain Australia import cargo prices, 5-11 Dec $/t
unchanged, compared with this year. Low High ±
Thailand fob (Class 170) 328 337 +8.00

Indonesia
Thailand fob (Class 320) 333 342 +8.00
Demand for imports strengthened despite the stable-to-weak
Singapore fob (Class 170) 331 340 +8.00
conditions in the domestic market. One deal was concluded
Singapore fob (Class 320) 336 345 +8.00
for a 1,000t end December loading cargo at $340-345/t cfr
west Kalimantan. Other buying indications were seen around
$350/t and higher for Singapore origin cargoes at the week’s Mideast Gulf to India freight rates $/t
Low High ±
close.
Demand in the local market has softened slightly with Bandar Abbas/ Nhava Sheva (drums) 12 15 -1
the approaching end of the fiscal year. Road projects were Bandar Abbas/ Mundra (drums) 13 15 -2
gradually winding down across the country. Bandar Abbas/ Haldia (drums) 41 45 -2
Market participants expect January-February to be sea- Bandar Abbas/ Mundra (bulk) 60 65 nc
sonally slow. However, at least one supplier reported a pos- Bandar Abbas/ Karwar (bulk) 63 68 nc
sible catch-up in pending road work projects due to delays Bandar Abbas/ Kakinada (bulk) 90 100 nc
following the onset of the Covid-19 pandemic this year.
Bandar Abbas/ Haldia (bulk) 100 105 nc
An importer was in the market seeking small-volumes on
a needs-basis, but was unable to secure cargoes thanks to
limited regional supplies, especially from Singapore. The im-
porter pointed to some ports, including Padang and Sumatra range. Meanwhile, buyers were willing to consider $348/t
requiring more volumes than others. and higher levels, taking the tight supply availability from
Singapore as a key concern. But they also had rising con-
Vietnam cerns about passing down costs to the domestic market
Demand from the key Vietnam market firmed further this segment.
week with few deals concluded with regional sellers and Demand is firming within the Vietnamese domestic
amid several buying enquiries. market, with the arrival of drier weather in recent weeks.
One deal was concluded for a 5,000t early-January ar- Paving activities are expected to maintain through Decem-
rival Korean origin cargo at $348/t cfr south and central ber, while importers and end-users aim to cover positions by
Vietnam. A second deal was also done for a Singapore-origin mid-to-late January and ahead of Chinese New Year celebra-
3,000t January loading cargo at $355/t cfr south Vietnam. tions in February 2021.
Selling indications for Chinese and Korean origin 5,000t Freight rates from Singapore to south Vietnam for 3,000-
and higher lots were seen in the $345-360/t cfr Vietnam 4,000t lots were seen in the $30-35/t range this week, with
some citing $32-38/t into north as well as south Vietnam
Delivered cargoes: North and South China $/t ports.
North China South China South Korea

400
South Korean export prices were assessed upwards by $15/t
350 at $295-300/t fob, with firm crude and fuel oil prices.
Traders were largely inactive, citing the seasonal lull in
300 demand. Fewer prompt enquiries from east China emerged.
hhhh Most market participants have not begun working on Janu-
250 ary-loading volumes and no offers were extended.
Selling ideas for the first quarter 2021 term volumes re-
200 main uncertain, with most market participants preferring to
assess the demand outlook before locking in volumes.
150 An east Chinese trader is working on term volumes with
3 Apr 26 Jun 18 Sep 11 Dec a South Korean refinery, with no further details available. A

Iranian export sales through the IME, 5-10 Dec

Grade Seller Price Rials/kg Packing Volume t Destination
Pen 60/70 Jey Oil 59,103-70,600 Bulk/Drum 41,000 Export by truck ex-Esfahan
Siah Fam 61,250-71,534 Bulk/Drum 15,000 Export by ship ex-Bandar Abbas
Pen 60/70 Black Gold 55,684 Bulk 21,000 Export by truck ex-Esfahan
Kasra Bitumen 71,534 Drum/Jumbo 7,500 Export by ship ex-Bandar Abbas
Petro Ajand Ghir 55,684 Bulk 2,000 Export by truck ex-Tehran
Petro Akam Pasargad 63,719 Drum 300 Export by truck ex-Esfahan
Jey Oil 62,314 Bulk 7,500 Export by ship ex-Bandar Abbas
MTA Holdiang 63,580 Bulk 4,800 Export by ship ex-Bandar Abbas
Bitumen Hormoz Pars 59,950 Bulk 8,000 Export by ship ex-Bandar Abbas
Petro Kala Hegmatan 58,500 Bulk 6,000 Export by ship ex-Bandar Abbas
Parsian Energy 56,104 Bulk 3,400 Export by ship ex-Bandar Abbas
Shimi Tejarat Naghsh Jahan 55,684 Bulk 300 Export by truck ex-Esfahan
Hormozan Oil 56,104 Bulk 9,000 Export by ship ex-Bandar Abbas
Akam Bitumen 53,432 Bulk 2,500 Export by truck ex-Esfahan
RahAndod Makan 52,432 Bulk 1,500 Export by truck ex-Esfahan
Reyouniz Artan 58,500 Bulk 4,500 Export by ship ex-Bandar Abbas
Shiraz Refinery 58,650 Bulk 600 Export by truck ex-Shiraz
Bam Gostaran 55,684 Bulk 1,000 Export by truck ex-Tehran
Oxin Tejarat 55,684 Bulk 700 Export by ship ex-Bandar Abbas
large refiner cited relative uncertainty in demand outlook, Importers with tanks have mainly turned to domestic lift-
which has weighed on how refineries are planning bitumen ing with local cargoes priced lower compared with imports.
production for 2021. A Shandong-based importer received an offer for 5,000t
prompt Korean origin cargo at $310/t cfr, following which
Taiwan prices rose with a deal concluded for a 5,000t late-Decem-
Taiwan's export prices increased by $9/t to $306-314/t fob in ber loading cargo at $350/t. The deal was excluded from
line with the regional market trend and limited supplies. assessment because of the prompt laycan.
With a planned turnaround lasting until mid-January, Demand remains lacklustre across east China despite firm
market sources do not expect offers from the private Tai- futures prices prompting buying interest. Road work projects
wanese refiner in the coming weeks. are gradually winding down amid colder weather. Bitumen
demand in south China remained stable-to-firm with sup-
China portive weather and ongoing road work projects. Cargoes
The Chinese market was stable-to-firm in line with the from the north continued to move downwards, ensuring
increase in crude values. Some buying enquiries from south ample supplies in the east.
China coupled with sporadic discussions or business in east Demand in south China remains stable with the sup-
China supported the market among regional sellers. The pro- portive weather. Singaporean sellers were bullish with
longed lull in import demand from China in the past month some citing receiving buying enquiries from buyers in south
had weighed on prices in the northeast Asian export mar- China. Initial buying indications from south China were seen
kets, and split with the price trend seen in southeast Asia. at about $360/t cfr for Singapore origin cargoes, with the
A Chinese state-owned refinery increased domes- Singapore to south China freight rates estimated at about
tic prices by 150yuan/t, pegging domestic prices at $30-35/t.
2,550-2,600yuan/t in the east and around 3,000yuan/t in the
south on an ex-refinery basis. The refinery cited stable lift- Australia
ing and strong futures prices contributing to the price hike. The Australian market continued to see firmer demand
Demand in east China has started to gradually wind down ahead of the break for Christmas and year-end celebrations.
with the onset of colder temperatures. With the demand A local refiner is expected to continue operating its
outlook for 2021 still uncertain, importers have mostly ab- bitumen production next year, although no confirmation was
stained from further discussions. available.

Freight rates for 7,000-10,000t lots from Singapore to Iranian Vacuum Bottom prices from NIOC*, 5-10 Dec
east Australian ports were unchanged in the $110-120/t Refinery Volume t Rials/kg $/t
range. The recent rise in freight rates was in line with the Low High Low High
uptick in the regional market as well as in fuel oil prices. But Bandar Abbas 29,000 59,419 60,339 233 237
some market participants also mentioned that there is ves- Esfahan no supply 53,000 53,091 208 208
sel availability, especially ahead of the lull expected during Shiraz 8,000 57,069 57,800 224 227
Tehran 23,000 52,555 53,050 206 208
the holiday season, and this could pressure freight rates in Tabriz 7,000 52,433 52,433 206 206
the coming days. Abadan 28,000 52,555 52,631 206 206
Arak 20,000 51,836 51,836 203 203
* Exclusive of the 9pc tax for domestic sales and 14pc duty for export sales
India
The Indian market remained buoyant on the back of firm
demand from the domestic market and the uptick in energy Iranian domestic sales through the IME, 5-10 Dec
Grade Volume t Price rials/kg
and regional prices.
Local prices are expected to see another round of hikes 60/70 2,850 55,800-64,300
85/100 n.a
on 16 December, as refiners are monitoring the upturn in
Emulsion n.a
crude values, fob Singapore and Iran prices in recent weeks. 40/50 n.a
Local refinery production in some parts of north and PG6416-PG5816-PG5822 296 58,250-64,750
MC250 250 76,500
western India has been impacted by either throughput cuts
on the back of poor demand for some refined products. A
refiner in western India may have reduced production that is
forcing a surge in buying enquiries from road contractors in now expects vessel loadings to commence in the week of 18
that part of the country. The refiner may not have sufficient December.
supplies until January next year. Usual truck loadings to Saudi Arabia are ongoing at a
Meanwhile, road paving activities have picked up pace steady pace.
with contractors pushing through projects following a slow
long period thanks to the lockdowns earlier this year. Iran
The Iranian bitumen market continued to rise supported by
Bahrain further hikes in vacuum bottom (VB) prices this week. But
The state-owned refiner kept export prices at $300/t fob these hikes were met with resistance from buyers in Asian
Sitrah for the third straight week. and African markets.
Vessel loadings, which were expected to commence in As a result, several suppliers sold at a discount on
the week of 11 December, have not yet begun. The refinery prompt delivery and advance payments, while others only
offered previous stocks this week. The exchange rate fluctu-
ated around 250,000-260,000 rials versus the US dollar in the
key local platforms.
Bandar Abbas: drums and bulk $/t
Bulk cargoes were sold at $235-240/t fob Bandar Ab-
Bandar Abbas waterborne (drums) bas this week, with fresh negotiations thereafter seen at
Bandar Abbas waterborne
350
$240-245/t. Bulk cargoes from Bandar Imam were offered at
$225/t.
300 Following the increase in VB prices to $235-237/t ex-
Bandar Abbas this week, sellers cited indications at around
250 $260-265/t. But buyers abstained from citing bids at this
hhhh
level and hence trade was thin.
200
A supplier sold a 6,500t pen 60/70 lot at $235/t for
150
prompt delivery to the UAE. Another producer sold 1,500t of
AC30 at $240/t, with no further details known.
100 A 2,000t bulk pen 60/70 cargo was sold at $238/t for
3 Apr 26 Jun 18 Sep 11 Dec seven days delivery. An unspecified cargo was sold at $220-

225/t fob BIK, based on previous stocks early in the week. Bandar Abbas refinery sold 29,000t VB feed at 59,814
Drum cargoes were sold at $295-305/t fob, up $10/t last rials/kg, up around 2,000 rials/kg. Abadan Refinery sold
week and amid thin trading. Fresh cargoes are expected 28,000t VB feed at 52,631 rials/kg, up about 1,300 rials/kg.
around $310-320/t fob. No VB was supplied by Esfahan Refinery this week, while
Exports to neighbouring countries were muted on contin- Tabriz refinery sold 7,000t at 52,433rials/kg. Tehran refinery
ued hike in prices, with drum cargoes offered at $303/t fca sold 23,000t at 52,744 rials/kg, up by 300 rials/kg. Shiraz
Pakistan (border) and $300/t fca Dogharon. Deals for 1,500t Refinery sold 8,000t at 57,233rials/kg, up by 4,500 rials/kg.
in 150kg drums were seen at $375/t cfr Bangladesh for Arak Refinery sold 20,000t at 51,836 rials/kg this week, up
January-delivery, with freight at about $65/t from Bandar by 500 rials/kg.
Abbas to Chittagong. Domestic prices surged following the announcement of
A total 6,000t in drums was sold at $295/t fob for Janu- new VB prices and road paving activities slowed down be-
ary-delivery to India. A producer sold total 7,000t in 180kgs cause of the ongoing monsoon season in some provinces.
drums at $299/t and 2,500t of VG30 in drums at $305/t fob
for 30 days delivery. A 5,000t drum cargo traded at $300/t
into India and UAE. Another cargo was sold at $350/t cfr Access on-the-go: Argus Publications app.
Closer to our clients. Closer to the market.
Colombo, with freight at about $50/t. Several drum cargoes
were sold at $295-300/t to Nhava Sheva and Mundra, with A new option is now available for you to access Argus
publications, no matter where your work takes you.
freight in the $12-15/t range. At least 2,000t polybag cargoes
• Optimized for reading on Android or iPhone
were sold at $270-280/t to east Asia. Iraqi prices rose by
• Charts and tables optimized for mobile access
$10/t and several drums were sold at $280-290/t.
• Jump quickly to sections of interest
On the IME, Jey Oil sold 7,500t pen 60/70 in bulk at
Download the app now
62,314 rials/kg ($243/t) ex-Bandar Abbas, while another
30,000t bulk cargoes were sold at 58,000 Rials/kg and
11,000t in drums at 70,000 rials/kg. Pasargad Oil will supply
bulk and drums cargoes at 61,000 rials/kg($239/t) and 75,000
rials/kg($294/t) ex-Bandar Abbas respectively next week.
Iran local market

Vacuum bottom (VB) feed price firmed another 4.2pc fol-
lowing the revision on 5 December. VB prices were at 55,054
rials/kg for Bandar Abbas and Abadan refineries, and were at
52,433 rials/kg for other refineries.
Buying interest remained strong in Bandar Abbas and
illuminating the markets
Shiraz refineries thanks to tight supply and prices rose to
60,339 rials/kg ($237/t) supported by buying enquiries.
About 143,000t of VB demand registered on the IME and a
total of 115,000t was sold.

Vessel tracking indications
Bitumen freight movements

Vessel name Owner Tonnage Loading port Discharge port Current position ETA
Poestella Bilsea 7,499 Augusta Djen Djen, Algeria Med 6-Dec
San Biagio ABC Maritime 4,900 Abidjan Takoradi, Ghana West Africa 6-Dec
Da Ming Shan FORTUNE TIANHE SHIPPING LTD 12,980 Agio Theodori Malta STS Med 8-Dec
Castillo de Pambre Ojeda Shipping 8,353 Tarragona Tenes, Algeria Med 9-Dec
T Aylin Tupras 19,000 Aliaga Cadiz, Spain Med 14-Dec
Iver Blessing Tarbit Shipping 6,189 Agio Theodori Oran, Algeria Med 13-Dec
Stella Orion Boerenzij 4,999 Liepaja Nyborg, Denmark Northwest Europe 10-Dec
Ping Hai Wan COSCOSAS 6,115 Augusta Skikda, Algeria Med 11-Dec
San Beato ABC Maritime 6,603 Mobile, Alabama Agadir, Morocco Med 9-Dec
Mohammedia,
The Deputy Trafigura 5,895 Mobile, Alabama Med 26-Dec
Morocco
Iver Balance HB Tankship 6,180 Huelva Bayonne, France Northwest Europe 13-Dec
Bituma Carnisse BV 4,995 Rotterdam Belfast, UK Northwest Europe 13-Dec
Bitfjord ABC Maritime 4,900 Port Jerome Dublin, Ireland Northwest Europe 13-Dec
Ya Long Wan COSCOSAS 5,900 Hamriyah Fangcheng, China Hamriyah 23-Dec
Zhuang Yuan Ao Xin de Yuan Shipping 12,000 Singapore Tianjin, China Java Sea 18-Dec
The Sheriff Trafigura 14,911 Tanjung Langsat Shanghai, China Java Sea 15-Dec
Rostella Rostella Shipping PTE LTD 7,996 Singapore Qinzhou, China Malacca Strait 14-Dec
New Grace Nippon Gas Line 6,067 Kemaman Qinzhou, China Java Sea 12-Dec
Black Dragon Itochu 2,500 Ulsan Tomakomai, Japan Central Kuroshio 11-Dec
Ocean Angel OCEAN SHINE Shipping CO LTD 6,600 Rayong Maoming, China Vietnam 11-Dec

News
Sapref to halt bitumen output next week November said it had completed the winding down process
BP and Shell's Sapref joint venture in South Africa will halt of buying Venezuelan crude.
bitumen production at its 180,000 b/d Durban refinery next Tipco will need to secure alternative sources of crude
week to repair a leak. to run at the refinery, failing which it could see the KBC
The leak has occurred in a heat exchanger in the refin- refinery shutting down for a longer period until the US-led
ery's propane de-asphalting unit (PDU). The unit will be shut sanctions against Venezuela are lifted. The company said it
down on 14 December and is slated to restart on 21 Decem- is evaluating alternative sources of feedstock and expects to
ber. Customers were notified that there will be no bitumen continue refinery operations beyond next year's first quarter.
production at the refinery for the whole of next week.
South Africa's bitumen supply was already constrained. Iran’s vacuum bottom prices continue to rise
Astron Energy's 110,000 b/d Cape Town refinery has been Iran’s vacuum bottom (VB) feedstock prices continued to rise
shut indefinitely since July and Engen's 105,000 b/d Durban on tight supplies from refineries and despite rising resistance
refinery was hit by a fire and explosion on 4 December. to higher prices from local bitumen participants.
The latest production halts coincide with a surge in bitu- Total VB supplies from all Iranian refineries decreased by
men buying for both domestic and export markets in south- 105,000t from a year earlier to 550,000t in November.
ern Africa as construction firms and other customers look to Demand for VB from bitumen producers has outstripped
refill their stocks ready for the new year. supplies from most refineries and pushed prices higher in
recent weeks.
Malaysia's KBC plans bitumen turnaround Some refineries have switched to producing more fuel oil
The 30,000 b/d Kemaman Bitumen (KBC) refinery in Malay- over the past month. Demand for fuel oil has strengthened
sia, owned by Thai bitumen trading firm Tipco, will have a for exports and in the domestic market because of winter
scheduled turnaround in next year's first quarter. restocking.
The KBC refinery, located on peninsular Malaysia’s east A planned maintenance at the 230,000 b/d Bandar Ab-
coast, will be shut from 15 January to 24 February. It can bas refinery is ongoing. The refinery is expected to resume
produce around 1.2mn-1.3mn t/yr of bitumen. KBC’s output production in 15-30 days, or by the end of December or first
accounts for about 18pc of southeast Asia’s bitumen produc- half of January. Only 165,000t of VB was sold in November
tion capacity. because of the maintenance, down from about 225,000t in
Supply availability is expected to be steady despite the the same period last year.
turnaround, as the refinery plans to draw on existing stocks “The Bandar Abbas refinery used to deliver 100 trucks/d
to meet its sales commitments with domestic and regional but this has now fallen to 40 trucks/d,” a bitumen producer
customers. said.
Tipco had earlier announced its intention to halt purchas-
es of Venezuelan crude by November this year to avoid the
risk of being caught up in US sanctions. The company on 23 Argus successfully completes annual Iosco
assurance review
Argus has completed the ninth external assurance
The Effects of Coronavirus on Markets review of its price benchmarks covering crude oil,
products, LPG, petrochemicals, biofuels, thermal coal,
coking coal, iron ore, steel, natural gas and biomass
> Blog posts benchmarks. The review was carried out by profes-
> Podcasts sional services firm PwC. Annual independent, external
> News stories reviews of oil benchmarks are required by international
> White Papers regulatory group Iosco’s Principles for Oil Price Report-
ing Agencies, and Iosco encourages extension of the
> Webinars
reviews to non-oil benchmarks.
> and more
For more information and to download the review
visit our website https://www.argusmedia.com/en/
View the Argus hub page >>> about-us/governance-compliance

News
Deliveries of VB by truck from the 373,000 b/d Esfahan Its restart will add supply to fuel markets that are already
refinery to bitumen producers were delayed because of struggling to absorb unused production from early this year.
limited loading capacity. The refinery previously sold and The company announced this morning that the main-
delivered most of its VB by pipeline to bitumen producers. tenance work was completed. The restart of ExxonMobil’s
VB prices increased to 55,054 rials/kg ($1.30/kg) ex- 310,000 b/d Antwerp refinery a month ago contributed to
Bandar Abbas and Shiraz refineries’ straight-run units on 10 keeping regional stock levels high and refining margins low.
December following a 4.2pc fall on 5 December, while other Higher output from Pernis will exacerbate both.
refineries announced VB prices at IR52,433/kg. The Pernis unit was taken offline in mid-October. Market
VB prices are calculated using a formula based on high- participants said it was one of the two equal-sized crude
sulphur 380cst fuel oil prices and the exchange rate on a distillation units (CDUs) at the site. The shutdown was Per-
domestic platform for the past fortnightly period. nis’ second maintenance downtime of the year, following a
Bitumen demand has slowed in target markets following two-month turnaround from April to June. It is possible that
a $80/t increase in Iranian bitumen prices in the past month. Covid-19 lockdown conditions meant that the work had to be
Iranian bulk cargoes were sold at $150-160/t fob Bandar staggered.
Abbas on 30 October, but prices increased to $230-240/t fob Extremely poor refining economics have encouraged
by the end of November. Drum prices were at $215-225/t many refiners to limit crude runs and shut units down during
fob at the end of October but rose to $295-305/t in just a the pandemic. Most recently, Total took its entire 222,000
month. b/d Donges refinery in France offline because it was making
losses.
TAL pipeline interruption hits German refining
Crude supply has been interrupted through the Transalpine South Africa to review products supply
(TAL) pipeline from the Italian port of Trieste, affecting at The South African government will undertake an urgent as-
least two of the German refineries that it serves. sessment of the country’s petroleum products supply follow-
One producer said that there have been no spot prices ing an explosion at Engen’s 105,000 b/d refinery in Durban on
offered for middle distillates at Miro's 301,000 b/d Karlsruhe 4 December.
refinery and the Bayernoil joint venture 210,000 b/d Voh-
burg-Neustadt refinery complex because of the interruption.
A trader said that an electricity line was damaged by Proposal to close price assessments early
heavy snow falls in the Alpine Tyrol region that straddles the Argus is seeking market feedback on whether to close
Italy-Austrian border. The TAL pipeline runs from Trieste to its bitumen market assessments at 12:30pm London
Germany, and branches off to supply refineries in Austria time for Europe and Africa and 12:30pm Singapore time
and the Czech Republic. for Asia-Pacific on Thursday 24 December, because of a
Bitumen has been less impacted, mostly as the paving potential lack of representative physical market liquidity
season is now so slow in Europe and can be served from to underpin price assessments.
existing stocks mostly. The disruption also looked short-lived Formal comments on this proposal should be marked
with the pipeline back to normal by 11 December, having as such and may be submitted by email to Argus Bitu-
stopped around 8 December. men report editor jonathan.weston@argusmedia.com
The interruption has delayed crude unloading at Trieste, or bitumen@argusmedia.com and received by Friday 11
where seven tankers are waiting to discharge and one is December 2020. Please note, formal comments will be
docked. Typically, 3mn t/month of crude goes into Tri- published after the consultation period, unless confiden-
este and the adjacent tank farm in San Dorligo della Valle, tiality is specifically requested.
but more than a third of the way through December only As per the [publication schedule](https://www.
329,000t has discharged. A further 724,000t is scheduled to argusmedia.com/en/methodology/publishing-schedule),
arrive, including what is on the eight tankers at the port. the Argus Bitumen report will be published a day earlier
than usual during the Christmas period, on Thursday 24
Shell restarts CDU at Pernis refinery December, with no report published the week ending
Shell has finished maintenance work on a crude distillation Friday 1 January 2021. The report will publish as normal
unit (CDU) at its 420,000 b/d Pernis refinery in Rotterdam. again on Friday 8 January 2021.

News
The relevant government entities are investigating the Engen is working hard “to ensure secure supply of core
cause of the incident, the department of mineral resources petroleum products to the market,” it said.
and energy (DMRE) said. In the meantime, existing import in- The South African Petroleum Industry Association (Sapia)
frastructure will be used to supplement petroleum products anticipates that any supply shortfall created by the refin-
supply, it said. ery’s extended shutdown will be easily met by imports.
Engen subsequently confirmed that no injuries were But the size of the extra demand first has to be assessed,
caused by the explosion and all refinery units were shut which may create a short time lag before the import process
down while the investigation is underway. can be set in motion, Sapia executive director Avhapfani
The firm said it was “assessing its overall bulk fuels Tshifularo said.
supply and demand position and implementing immediate It may be more difficult to fulfil requirements for special-
mitigations to manage inventory and product supply require- ity products such as bitumen, lubricants and fuel oil that are
ments.” not as readily imported, Tshifularo said.
At the time of the incident South Africa's domestic
petroleum product supply was already constrained after an
explosion on 2 July led to Astron Energy shutting its 110,000
b/d Cape Town refinery indefinitely. Astron has since been
Argus Consulting meeting demand for gasoline, diesel and marine bunker fuel
through imports.
Services In addition, state-owned PetroSA expects its 34,000 b/d

gas-to-liquids (GTL) refinery in Mossel Bay to run out of feed-
stock by the end of this year because of depleting offshore
Bespoke projects gas fields. To avoid closing the plant, PetroSA has put out a
tender for an LNG supplier.
Long-term Earlier this year Engen, which is is 74pc-owned by Ma-
laysia's state-owned Petronas, said that it is weighing up the
Mid-term Durban refinery's future.
South Africa usually buys around a third of its fuel
Short-term requirements from overseas when all its refineries are
operational. The country’s refining capacity was 718,000 b/d
Commodity market expertise in 2018. Capacity operated by Engen, Astron and PetroSA
International networks represented just over a third of that.
Trusted data
Portugal awash with crude in October
Portugal's crude imports were sharply higher on the year for
a second successive month in October, supported by record
Providing clients with: receipts from the US. This acted to boost crude stocks, be-
• Business strategy support cause refinery runs were cut by the mothballing of units at
one of the country's two plants.
• Access to the local and global energy Portugal imported 263,000 b/d of crude in October, down
commodity market by 8pc from a six-month high in September but up by 18pc
• Customized market analysis from a year earlier, according to the general directorate for
energy DGEG.
• Supply and demand, trade and price forecasts Integrated Galp, the country's only refiner, halted crude
• Training distillation, vacuum distillation, reforming and visbreaking
at its 110,000 b/d Porto refinery on 10 October in response
to weak products demand, leaving the country with just
220,000 b/d of working crude distillation capacity.
Click here to find out more » Brazil was Portugal's main crude supplier for the second

NEWS
month in a row, as Galp continued to bring in large amounts

from its upstream activities there. Around 63,000 b/d of Bra-
zilian crude arrived in Portugal in October, down by a third Argus direct
from September but twice the amount of a year earlier. Web | Mobile | Alerts
Receipts from Azerbaijan hit a 17-month high of 53,000
b/d, making the county Portugal's second largest supplier Argus Direct provides immediate
in October. Imports from the US doubled on the month to access to market moving news,
47,000 b/d, the highest on record, partly replacing crude intelligent analysis and robust
from the UK and Equatorial Guinea, which fell to zero. price assessments, wherever.
Among other west African crude suppliers, Nigeria and
Angola sent 31,000 b/d each. www.argusmedia.com/direct
Galp doubled its receipts of the Saudi Arabian crude
it takes under a term contract for bitumen production at
Porto in October from July, with 38,000 b/d imported over
the month. Bitumen and aromatics processing continues at Argus Bitumen Methodology
MethodoLogy and specifications gUide

Porto, where only fuels production was halted. Argus uses a precise and transpar-
ent methodology to assess prices argUs BitUMen
in all the markets it covers. The
latest version of the Argus Bitumen Contents:
Introduction
Bitumen price assessments
2
2
Methodology can be found at:

Grades and specifications 2
Freight assessments 3
Data collection 3
Market commentary 3
www.argusmedia.com/methodology Europe bitumen market

Mediterranean bitumen market
Sub-Saharan Africa bitumen market
Europe-Africa cargo freight rates
3
4
5
5
Asia-Pacific and Middle East bitumen market 6
Corrections 7
Currency conversions 7
For a hard copy, please email

Bitumen economics 7
Specification tables 8-9
info@argusmedia.com, but
please note that methodologies
are updated frequently and for Last Updated: janUary 2016
The most up-to-date Argus Bitumen Methodology is available on www.argusmedia.com
the latest version, you should www.argusmedia.com
visit the internet site.
Argus Bitumen is published by Argus Media group
Registered office Trademark notice Publisher Customer support and sales:

Lacon House, 84 Theobald’s Road, ARGUS, the ARGUS logo, ARGUS MEDIA, INTEGER, Adrian Binks support@argusmedia.com
London, WC1X 8NL ARGUS BITUMEN, other ARGUS publication titles and sales@argusmedia.com
Tel: +44 20 7780 4200 ARGUS index names are trademarks of Argus Media Chief operating officer
Limited. Matthew Burkley
London, UK
ISSN: 2057-6749 Visit www.argusmedia.com/Ft/trademarks for more
Global compliance officer Tel: +44 20 7780 4200
information.
Copyright notice Jeffrey Amos Nur-Sultan, Kazakhstan
Copyright © 2020 Argus Media group Disclaimer Tel: +7 7172 72 92 94
All rights reserved The data and other information published herein (the Chief commercial officer
Jo Loudiadis Beijing, China Tel: +86 10 6598 2000
All intellectual property rights in this publication and “Data”) are provided on an “as is” basis. Argus and
the information published herein are the exclusive its licensors (including exchanges) make no warran- Dubai Tel: +971 4434 5112
Global SVP editorial
property of Argus and/or its licensors (including ties, express or implied, as to the accuracy, adequacy, Houston, US
Neil Fleming
exchanges) and may only be used under licence from timeliness, or completeness of the Data or fitness for Tel: +1 713 968 0000
Editor in chief
Argus. Without limiting the foregoing, by accessing this any particular purpose. Argus and its licensors (including Jim Washer Moscow, Russia Tel: +7 495 933 7571
publication you agree that you will not copy or repro- exchanges) shall not be liable for any loss, claims or
duce or use any part of its contents (including, but not damage arising from any party’s reliance on the Data New York, US
Managing editor
limited to, single prices or any other individual items of and disclaim any and all liability related to or arising out Andrew Bonnington Tel: +1 646 376 6130
data) in any form or for any purpose whatsoever except of use of the Data to the full extent permissible by law. Sao Paulo, Brazil
under valid licence from Argus. Further, your access to Editor Tel: +55 11 3235 2700
and use of data from exchanges may be subject to addi- All personal contact information is held and used in Jonathan Weston
tional fees and/or execution of a separate agreement, accordance with Argus Media’s Privacy Policy Singapore Tel: +65 6496 9966
Tel: +44 20 7199 5779
whether directly with the exchanges or through Argus. https://www.argusmedia.com/en/privacy-policy bitumen@argusmedia.com Tokyo, Japan Tel: +81 3 3561 1805
Petroleum
illuminating the markets
.

Argus Bitumen (2020-12-11)

Uploaded by

Copyright:

Available Formats

Argus Bitumen (2020-12-11)

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Argus Bitumen (2020-12-11)

Uploaded by

Copyright:

Available Formats

Argus Bitumen

Europe, Africa, Middle East and Asia-Pacific prices and commentary

Issue 20-50 | Friday 11 December 2020

Singapore cargo vs Taiwan cargo $/t

Singapore pen 60/70 waterborne Taiwan cargo

150 Vessel tracking indications 18

Waterborne BITUMEN prices, fob

150 Mediterranean, basis Augusta -103.82 -5.91 -1.02

100 Spain -98.65 -5.07 -1.31

50 Greece -96.15 -4.66 -0.91

0 Ivory Coast -8.65 9.52 -1.31

Copyright © 2020 Argus Media group Page 2 of 22

Issue Ref: 183166

Northwest and Central Europe market commentary

Summary Northwest and central Europe bitumen prices, 5-11 Dec

400 Northwest Europe cargo freight rates $/t

Copyright © 2020 Argus Media group Page 3 of 22

Northwest and Central Europe market commentary

Copyright © 2020 Argus Media group Page 4 of 22

Northwest and Central Europe market commentary

Copyright © 2020 Argus Media group Page 5 of 22

Mediterranean market commentary

Summary Mediterranean price index $/t

Italy domestic HSFO Med

Copyright © 2020 Argus Media group Page 6 of 22

Mediterranean market commentary

of next year's required volumes, nor the exact pricing of Spain/Portugal

understood to be producing around 1,200 t/day of bitumen.

Copyright © 2020 Argus Media group Page 7 of 22

Mediterranean market commentary

Italy kets looking more attractive through to the first quarter of

Copyright © 2020 Argus Media group Page 8 of 22

SUB-SAHaRAN africa market commentary

Summary Sub-Saharan Africa bitumen prices, 5-11 Dec

period in key markets, principally Nigeria. Bandar Abbas/Jebel Ali-Djibouti (drums) 90 95 -2

Ghana remained a notable regional exception, continuing

Copyright © 2020 Argus Media group Page 9 of 22

SUB-SAHaRAN africa market commentary

Copyright © 2020 Argus Media group Page 10 of 22

SUB-SAHaRAN africa market commentary

tightened bitumen supply, although the immediate con-

Copyright © 2020 Argus Media group Page 11 of 22

Asia-Pacific and Middle East Market Commentary

Singapore Asia bitumen prices, 5-11 Dec

Monthly Average (contract)

Singapore pen 60/70 waterborne ABX 2 269.38 276.00

100 Banoco Arab Medium $/bl 48.42 50.40 +1.67

Copyright © 2020 Argus Media group Page 12 of 22

Asia-Pacific and Middle East Market Commentary

Prices at China main refineries, 5-11 Dec

Bitumen freight, 5-11 Dec $/t

Copyright © 2020 Argus Media group Page 13 of 22

Asia-Pacific and Middle East Market Commentary

Thailand fob (Class 170) 328 337 +8.00

North China South China South Korea

Copyright © 2020 Argus Media group Page 14 of 22

Asia-Pacific and Middle East Market Commentary

Iranian export sales through the IME, 5-10 Dec

Copyright © 2020 Argus Media group Page 15 of 22

Asia-Pacific and Middle East Market Commentary

Singapore cargo vs Taiwan cargo $/t

150 Vessel tracking indications 18