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IraqQ1 2025
In the first quarter of 2025, Bitumen markets have been in transitional phases. Iraq’s flatlining prices tell the tale of a nation waiting for political stability before committing to major projects. Iran’s 2% gain in Bitumen prices suggested some success in finding new export channels, albeit at compromised margins. Canada’s bitumen market is quietly confident, with early spring demand and crude price support preventing declines. And the UAE’s steady 2% climb of bitumen prices continues as Dubai’s cranes swing into action for what promises to be a transformative decade of development.
Q4 2024
The final quarter of 2024 brought nuanced shifts to global bitumen pricing, shaped by fiscal cycles, geopolitical undercurrents, and seasonal transitions. In Iraq, a 2% price uptick reflected the annual year-end budget surge, as ministries accelerated spending—an expected but influential driver. Iran saw a 3% rise, leveraging regional pre-winter stockpiling despite the persistent shadow of sanctions. Canada’s bitumen prices eased by 2%, a typical seasonal dip, though tempered by consistent U.S. demand. The standout, however, was the UAE, where prices surged 5%, fueled by Expo 2030 infrastructure push, planned refinery maintenance, and a rare weather window that finally favored large-scale construction.
Q3 2024
The post-summer period in Q3 2024 brought cautious optimism in the bitumen market. Iraq’s bitumen prices finally stabilized (just 1% down) as some infrastructure projects crawled forward, though bureaucratic delays remained the norm. Iran managed a 1% uptick in Bitumen prices – not quite a victory, but a reprieve from freefall. Across the Atlantic, Canada enjoyed a 4% surge as peak construction demand met refinery maintenance bottlenecks. The UAE market found its footing with a 1% gain, thanks to savvy exporters redirecting cargoes to Africa and South Asia where demand was heating up.
Q2 2024
As the second quarter progressed, the divergence in regional bitumen markets became more pronounced. In Iraq, the sector faced mounting headwinds—tender delays and the disruptive effects of monsoon rains converged to suppress demand further, leading to a 3% decline. Meanwhile, Iran intensified its export-driven approach, opting to cut prices by another 5% to sustain refinery throughput. However, this strategy increasingly strained domestic margins, highlighting a growing trade-off between volume and value. In contrast, North America presented a more resilient picture. Canada posted a 2% uptick, buoyed by seasonal construction activity and a steady pull from U.S. demand, offering a modest but welcome reprieve. The UAE, however, grappled with the extremes of its climate; soaring temperatures and saturated storage capacity contributed to a 3% drop, as midday pours became impractical and contractors hesitated to move product.
Q1 2024
Bitumen prices entered the Q1 2024 under pressure, shaped by a mix of political, economic, and seasonal forces across key markets in the first quarter. In Iraq, a 5% price decline reflected reduced infrastructure spending amid ongoing political deadlock—an all-too-familiar drag on development. Iranian producers, constrained by sanctions, slashed prices by 4% to clear surplus inventories, prioritizing cash flow over profitability. Canada saw a 3% dip as an unusually mild winter stalled roadwork, delaying seasonal demand. In the UAE, prices fell 4%, driven by a slowdown in construction activity and intensified competition from discounted Iranian exports. These movements highlight how geopolitics and weather continue to override broader global supply-demand fundamentals.
Q1 2025
In the first quarter of 2025, bitumen prices in India surged by around more than 10%. This notable rise was fueled by several factors, primarily the increased demand stemming from the launch of major infrastructure initiatives, especially in road construction and seasonal uptick in the demand. Government funding for national highway upgrades and urban development projects significantly boosted consumption levels. Furthermore, a notable increase in global crude oil prices raised production costs for bitumen, contributing to the overall price hike. Additionally, regional supply limitations and logistical challenges further exacerbated the upward trend in prices nationwide. After the conclusion of Q1 of 2025, Bitumen prices have been assessed at USD 640 per MT in the Indian domestic market for VG 40 grade.
Q4 2024
The last quarter of 2024 continued the upward trend in bitumen prices, with a 1% increase. This rise was largely attributed to ongoing infrastructure development and increased government investment in road construction as preparations for the new year commenced. Despite steady demand, the price increase remained modest, as supply chains were stable, and the market began to show signs of balancing out after the more significant fluctuations earlier in the year.
Q3 2024
In the third quarter of 2024, bitumen prices experienced a more pronounced rise of approximately 3%. This increase was driven by a surge in demand for road construction following the end of the monsoon season, which spurred infrastructure activities. Both government road initiatives and private sector projects contributed to the heightened consumption of bitumen. Additionally, a moderate rise in global crude oil prices further influenced production costs, leading to higher bitumen prices nationwide.
Q2 2024
The second quarter of 2024 witnessed a slight rebound, with bitumen prices rising by 1%. This increase was primarily fueled by the seasonal uptick in demand for road construction materials as infrastructure projects gained momentum after the monsoon season. However, the growth in prices was limited due to stable supply conditions and logistical challenges in certain areas that restrained further price escalation.
Q1 2024
During the first quarter of 2024, bitumen prices in India experienced a notable decline of around 8%. This drop was influenced by several factors, including a slowdown in construction activities following the holiday season and a fall in global crude oil prices, which helped reduce production costs. The early months of the year saw a decrease in demand for road construction materials, combined with an oversupply, resulting in a significant price reduction across various regions in India.
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2023: Sustained High Input Costs and Strong Infrastructure Push While crude oil prices eased slightly from their 2022 peaks, they remained elevated compared to historical levels. Persistent global inflation also kept operational and logistical costs high. Simultaneously, the Indian government continued its strong push for infrastructure development, particularly road construction under programs like Bharatmala, ensuring robust demand for bitumen. This sustained high demand, coupled with still-high input costs, kept bitumen prices firm and significantly above pre-pandemic levels throughout 2023.
2022: Surge in Crude Oil Prices due to Russia-Ukraine Conflict The outbreak of the Russia-Ukraine conflict in February 2022 caused extreme volatility and a significant surge in global crude oil prices, with Brent crude crossing well over $100 per barrel. This dramatic increase in the primary input cost directly resulted in sharp hikes in bitumen prices in India. Oil marketing companies implemented multiple price increases, making bitumen significantly more expensive and impacting the budgets of road construction projects nationwide.
2021: Economic Recovery and Rising Crude Oil Prices As economic activities resumed more broadly in 2021 and governments renewed focus on infrastructure projects delayed by the pandemic, demand for bitumen saw a significant revival. Concurrently, global crude oil prices steadily increased throughout the year due to recovering global demand and OPEC+ supply management. This combination of recovering domestic demand and rising feedstock (crude oil) costs led to a consistent upward trend in bitumen prices in India during 2021.
2020: The Effects of COVID-19 Pandemic and Global Crude Oil Crash The onset of the COVID-19 pandemic and subsequent nationwide lockdowns in India brought road construction activities to a near standstill in the second quarter of 2020. Simultaneously, global crude oil prices crashed due to plummeting demand worldwide. Since bitumen is a crude oil derivative, this dual impact led to a sharp decrease in bitumen prices due to both collapsed demand from the construction sector and significantly lower input costs. Later in the year, as lockdowns eased and crude oil prices began to recover, bitumen prices started to rebound, though demand recovery was initially gradual.
This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Bitumen pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Bitumen is a black, highly viscous, sticky, and waterproof substance that is present in some natural deposits or is obtained as a residual product from petroleum refining (typically from the vacuum distillation of crude oil). It acts as a binder or adhesive and is primarily composed of hydrocarbons. Its main application is in road construction, where it is used to bind aggregates together to create asphalt concrete (asphalt pavements). It is also widely used for roofing and waterproofing applications due to its excellent water-repellent properties.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| SN. | PARAMETER | METHOD | SPECIFICATION | ||
| VG10 | VG30 | VG40 | |||
| 1 | Penetration @ 25°C, 100 g, 5 sec., 0.1mm, Min. | IS 1203 | 80 | 45 | 35 |
| 2 | Absolute Viscosity at 60°C, Poise | IS 1206 (Part 2) | 800-1200 | 2400-3600 | 3600-4800 |
| 3 | Kinematic Viscosity at 135°C, cSt, Min. | IS 1206 (Part 3) | 250 | 350 | 400 |
| 4 | Flash Point (COC) °C, Min. | IS 1448 (P: 69) | 220 | 220 | 220 |
| 5 | Solubility in trichloroethylene, %, Min. | IS 1216 | 99 | 99 | 99 |
| 6 | Softening Point.(R&B), °C, Min. | IS 1205 | 40 | 47 | 50 |
| 7 | Tests on residue from Rolling Thin Film Oven Test (RTFOT) | ||||
| a) Viscosity ratio at 60°C, Max. | IS 1206 (Part 2) | 4 | 4 | 4 | |
| b) Ductility at 25°C, cm, Min. | IS 1208 | 75 | 40 | 25 | |
Applications
Bitumen is an essential material predominantly employed in the road construction industry, which represents its most significant application. It functions as a binder when combined with aggregates to produce asphalt concrete, a vital component for paving highways, urban roads, airport runways, and parking facilities, all of which are influenced by the ongoing development of global infrastructure and the expansion of transportation networks.
The pricing of bitumen is shaped by several important factors, primarily the cost of crude oil, since bitumen is a byproduct of petroleum. Changes in global oil prices have a direct effect on the expenses associated with bitumen production. Additionally, the demand for bitumen, particularly from construction projects like road building and infrastructure development, significantly influences pricing. Transportation expenses, which are affected by fuel costs and logistical considerations, also play a role in the overall pricing structure. Moreover, government regulations, including taxes and subsidies, can impact bitumen prices. Lastly, the competitive landscape among bitumen suppliers and the availability of alternative materials can further affect pricing trends.
To secure better pricing for bitumen from suppliers, it’s vital to build strong, trustworthy relationships. Consider consolidating your orders with one supplier to take advantage of bulk discounts. Look into establishing long-term contracts to stabilize prices and ensure a reliable supply. Keep yourself informed about market trends and competitor pricing to strengthen your negotiating stance. Emphasize the advantages of a long-term partnership, such as increased order volumes and steady revenue, to motivate suppliers to provide more attractive pricing. Additionally, explore alternative payment options, like discounts for early payments, to further enhance cost efficiency.
Bitumen procurement carries several risks, including fluctuations in oil prices, disruptions in the supply chain, quality assurance challenges, and compliance with environmental regulations. To address these risks, it’s important to diversify your supplier network to minimize dependence on a single source. Implement strong quality control protocols to ensure that the bitumen meets your standards. Stay informed about market conditions and regulatory changes to proactively manage potential issues.
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