The global bitumen market is experiencing a period of intricate fluctuations, driven by a combination of refinery maintenance, fluctuating fuel oil prices, and distinct regional demand patterns. This mid-week market pulse reveals a landscape where industry players are navigating a series of challenges and opportunities.
European Market: Winter Slowdown, Spring Anticipation
Across North and Central Europe, construction activity remains subdued, reflecting the typical winter slowdown. However, early indicators suggest a potential uptick in project work as the spring season approaches. The stability of truck prices has been a key feature, although regional variations exist, notably in Hungary and Romania, where winter conditions and declining fuel oil prices have led to price reductions.
Looking ahead, market participants are eyeing potential price hikes for March supplies in Benelux and Germany, despite a late-February decline in High Sulfur Fuel Oil (HSFO) barge prices. The UK market has witnessed a significant decline in bitumen consumption, hitting a multi-year low. Concerns over potential US tariffs on Canadian energy imports also add a layer of uncertainty to the European supply landscape.
Mediterranean Region: Demand Disparities and Refinery Turnarounds
The Mediterranean region presents a mixed picture. North African markets, particularly Libya and Morocco, are experiencing robust demand fueled by ongoing infrastructure projects. In contrast, Italy and Spain are still grappling with the winter slowdown, characterized by varied price ideas and refinery maintenance impacts.
Cargo prices in the region have seen a decline, mirroring the decrease in HSFO prices, while bitumen differentials have remained relatively stable. The upcoming Ramadan period is expected to have a limited impact on activity, although the Eid al-Fitr holiday could lead to disruptions.
Refinery turnarounds, such as the one at SRI Augusta in Italy and the planned shutdown of the Repsol-Moeve refinery in Spain, are tightening regional supply. Additionally, rising delivered cargo premiums for some North African imports highlight the impact of freight costs.
African Markets: Regional Variations and Infrastructure Development
In Africa, West African cargo import prices have adjusted downwards, following declines in crude and HSFO prices. However, construction activity remains below expected levels. Nigeria, despite current demand challenges and payment delays, remains optimistic about increased activity later in 2025.
East Africa continues to face constraints due to slow government payments, impacting construction activity in Kenya and Uganda. South Africa is experiencing a surge in import cargo volumes, affecting domestic prices, while rainy weather slows down project work. Regional project variances are evident, with some countries reporting limited activity and others experiencing growth. Freight rates across the continent have remained largely stable.