We provide brief explanations about bitumen so that you familiar with it. In the rest of the article, we will discuss about price and mismatch the prices of bitumen Price in Iran and the world.
Bitumen is a sticky and dense hydrocarbon that exists in the mines. It is introduced in the world with different names.
This material looks black and shiny. The color is dark brown in powdered state. It is obtained by crushing.
The pasty material is one of the oil derivatives that is often produced in oil refineries.
160 different products require to natural bitumen such as: ink, asphalt (constructions), foundry products, stain color, building (roof insulation), oil and gas.
Final price of bitumen
The price of it per tone is calculated based on the origin and carat products.The final prices of material vary based on the origin, carat products as well as supplier’s pricing.
Iran bitumen price changes in winter and summer because it is different to access it in these two seasons.
Mines of that are filled with water in winter, so we can hardly get access to this material.
there is no problem in the summer, so its prices increase in summer versus winter.
The best time to buy that is March and October and they determine the final price of that in the world based on the latest reports of the Ergo Magazine.
Global Bitumen Price
They determine the global bitumen price based on crude oil.
If the price of petroleum products is lower in the world, the purchase will be less due to the fear of price drop but if the price of regional crude oil rises, the rate of production on global stock market falls and increase demand for it.
Because they use pitch to fluid loss control; as a result, it can reduce the number of operational sites in the world, reducing demand for natural bitumen solubility as well as increase bitumen prices.
Factors influencing pricing
Factoring affecting its price include coronavirus outbreak, climate as well as financing, so demand for that around the world has decreased by 30%.
If the demand of that declines in China, its price will decrease greatly in the Middle East and other Asian countries.
Iran Bitumen Price
Iran ranks the world’s seventh producer, fourth in world in bitumen exports which produces seven million tonnes per annually.
They produce that through Vacuum bottom in countries including Chaina, Bahrain, South Korea and Iran.
The following factors cause mismatch between the prices of bitumen in Iran and the world.
Demand for domestic bitumen is only 30% . Sadly, current bitumen exports have problems due to prohibition, although they increase production capacity of bitumen.
Effective Factors on Reduction of Iran’s Bitumen Exports
1.Vacuum bottom price
2.Low quality bitumen exporting
3.Lack of trustee in this industry
4.Prohibitions (sailing, insurance, currency transfer)
Conflicting bitumen price in Iran and the world
One of the concerns of its producers and exporters in Iran is determining the price of vacuum bottom feed.
It has created problems in the bitumen industry and market of our country and also has caused mismatch between the prices of bitumen in Iran and the world because this material has a great impact on determining the final price of that as well as leading to a significant increase in the price of Iran’s bitumen exports in the region, so it leads to losing customers and demand reduction.
Refineries can determine the price of vacuum bottom at a high rate regardless of the global bitumen rate.
Our competitors can easily control pitch export from Iran and domestic market due to the prohibitions, increase in export prices as well as the mismatch between pitch prices in Iran .
Reduction of Iran’s export market
Considering that 93% of the cost of bitumen depends on the vacuum bottom; as a result, we have to take important measure in this field to prevent unreasonable price hikes because when the price of vacuum bottom increases three times, Iran export markets have decreased from 63 markets to 21 markets.
One of the other basic problems in the pitch export is the supply of its export in the ring export of the commodity exchange
It has caused mismatch between its prices in Iran and the world.
if there are prohibitions, foreign customers can’t buy pitch and also exporters cannot export it as a birth certificate.
Unknown bitumen for foreign buyers
No company in the world offers 100% of its products on the stock exchange.
Its producers agree to sell it in the stock exchange in Iran because of the rule clarification and discovering price.
Factors that make up bitumen unknown to foreign buyers include: the weakness or lack of information on the stock exchange website, the special trade of pitch as well as it’s consumption in the world.
Attracting domestic and foreign customers to the commodity exchange
However, we need to make the stock exchange easy by stock exchange export ring .
We make it possible for the main producers to reexport bitumen directly.
the number of buyers has reduced due to prohibitions on the commodity exchange
The number of buyers buy the Iran exports of pitch on a limited basis.
If the commodity exchange provides more support, producers and exporters will invite a large number of domestic and foreign customers to the commodity exchange.
One of the other important issues in mismatch between the prices of pitch in Iran and the world is currency .
the export ring has a foreign exchange commitment based on the exporting manufactured companies.
The government should return the currency derived from exports to the Nima system and does not receive cost from customers.
Global bitumen markets
The today only 5% of the global demand market belongs to Iran, so income from bitumen exports decreases significantly and is the less than a billion dollars.
Currently, suppliers of global bitumen markets include Iraq, Greece, USA, Singapore, Italy, South Korea and etc.
We hope that the government can increase the support of Iran bitumen marketing.
He can facilitate condition of exports with the cooperation of foreign exchange supply export companies.
Government must find a solution to the mismatch between the prices of Iran , reducing it as well as creating foreign exchange and employment according to oil revenues.