Bitumen demand hit hard by Ukraine related price surge

Bitumen demand hit hard by Ukraine related price surge

London, 5 April (Argus) — Bitumen consumption has been severely dented by the crude-led price spike in Mediterranean and European cargo and truck markets since the start of the Ukraine conflict.

Evidence of a widespread sharp fall in demand has been most visible in north Africa and central Europe, while the start of the spring road construction season has been far slower across western Europe than is normal.

Spanish fob cargo prices have jumped by nearly $250/t since mid-December, $100/t of that gain since the Ukraine conflict began on 24 February, reaching a $636/t peak on 11 March before edging back to $600/t now.

Egyptian state-owned EGPC has cancelled nearly 40,000t of cargo volumes it had awarded for April delivery into its Alexandria terminal, and postponed another. While the start-up of a new bitumen unit at one of EGPC's Suez refineries was a factor behind the move, Egypt's bitumen suppliers said there has been evidence of falling domestic demand and rising inventories n Egypt, while sharply rising prices will have added to issues in financing cargo deliveries.

In Algeria, which consumed around 750,000t of bitumen last year, March consumption estimates were at just 20,000t, a third of normal seasonal levels, with the current month