What are the Factors Affecting Bitumen Price?

Bitumen Price in Iran

Bitumen Price in World

One of the main factors affecting Bitumen price is Crude Oil price, Bitumen is derived from Crude oil, so changes in crude oil prices has direct significant impact on bitumen price. The Crude oil price is determined based on Global Market Changes.

As Crude Oil is a significant fuel in Global Market it undertakes many reasons for price changes like Political issues between countries, War risks all over the world, Cold weather seasons, Petrol Costs, and many other Economical reasons. 

One of the main regions which plays main role in Oil prices is the Middle East.  Middle East Oil price is primarily determined by global supply and demand dynamics. Also specific regional factors such as production levels and geopolitical events can impact the prices. 

Major benchmarks for Oil price are WTI and Brent crude as reference points for global pricing.

Quality is another factor affecting Bitumen prices. Bitumen and asphalt prices  have a wide range of fluctuations in prices based on the specification and quality of the product also, in which Iran Bitumen and especially Pars Bitumen undertakes very high quality standards in Production of Bitumen. One of the main reasons of having high Quality is the very high quality Oil and Vacuum Bottom (raw material) produced in Iran Refineries. 

Other factors affecting Bitumen price are Energy costs, increasing workers salary, transportation and petrol price relatively.

Furthermore, we can point to another factor as the Supply and Demand market in Global Market which is impacting Bitumen price. This supply and Demand is also seasonal. Mostly in the construction and renovation season which is spring and summer the demand is higher normally, so eventually bitumen price confronts price increase.  

On the other hand during autumn and winter which is the low season for road construction, demand of Bitumen is decreased so price normally goes down unless there is a political issue worldwide. 

It is also necessary to point out that another factor which is worth to mention is the prices of additives necessary for manufacturing the end bitumen product such as Styrene, Styrene-Butadiene-Styrene additives.

Finally, and overall speaking there are many other factors affecting Bitumen price, such as transport charges, freight costs, international container costs, political global issues and many other subjects.  

Is it possible to Anticipate Bitumen Price in the Market?

It is necessary to take all the factors into consideration, to anticipate bitumen price. Although by taking all points into consideration, it may not be possible to enable us to anticipate Bitumen price anyway. However, the main crucial issue influencing Bitumen price, is the Oil price market.

Accordingly, when oil price is increased or decreased in Global market, relatively the price of all the derivations taken from oil will be changed. Altogether, the most dominant proof of Bitumen price, is global Oil price. So, the easiest way to understand Bitumen price is to follow oil price market to make anticipation.

Emphatically, oil price is itself controlled by different factors such as political matters, demand and production market, Discovery and Extraction costs, wars and relationship between countries and so many other factors which is clarified in the Oil price Market in our website.

Furthermore, there are many analysts who analyze the market weekly and daily based on their studies of market, you can use these websites also to reach a general idea about the future market.

 

Written by Pars Bitumen Company