Bitumen prices are again soaring up in Iran ports.
"Suppliers are experiencing new high record prices for Vacuum Bottom feed and therefore, the final product gets more expensive" said Emad Honarparvar, CEO of Modiran Trading Company.
He also counted three more reasons for some oil products getting more expensive, less traded and lacked in supply, like Base Oil and RPO:
- Iran's NIOC management is focusing on selling finished oil products like engine oil, motor oils etc instead of raw products like base oil, SN, RPO etc
- The global market seems steady on oil production freeze program and the oil price remains above 50 USD per barrel
- The market demand for Iranian oil and petrochemical products seems promising and many countries are seeking advantages out of the The Joint Comprehensive Plan of Action (JCPOA) which is known commonly as the Iran deal or Iran nuclear deal.
The Oil prices seem to be steady in the first 6 months of 2017, the dollar gains some more strenghth and the political situation of the Middle East seem to be under the shade of coming Iranian presidency election which will be on May 2017.
So the prices of Bitumen and other oil products should be in a slightly rising trend from the beginning of 2017 till the end of second quarter.
Iran Bitumen Market exclusive News Digest and Market Analysis, 25th Jan 2017