Iranian bitumen export prices slip on weaker VB
Bulk Bitumen and drum prices in Iran slipped last week along with weaker demand for vacuum bottom (VB) feedstock traded on the Iran Mercantile Exchange.
Trading picked up earlier in the week and a flurry of cargoes were transacted but trading subsided after VB prices fell by about 7pc or $20/t on 7 September. Market participants took to the sidelines to monitor this week’s competition for VB and volatility in the crude and fuel oil prices.
Iranian bulk offers were subsequently offered at $320-330/t fob basis later in the week. But these failed to attract firm interest, as price ideas from many prospective south Asian buyers did not adjust accordingly. Several south Asian buyers bid at less than $300/t fob for prompt-loading cargoes as they expect the latest Iranian rally to lose steam.