Economy, Business And Markets

Bitumen Tops List of IME Traded Goods

Bitumen Tops List of IME Traded GoodsBitumen Tops List of IME Traded Goods

Iran Mercantile Exchange (IME) has recently been witnessing ever-increasing orders for bitumen on the export trading floor, which has made bitumen the most demanding commodity among all oil-related goods, ISNA reported.

“With the ongoing exports to Pakistan, Afghanistan and Iraq, demand for various types of bitumen on the export trading floor has dramatically surged,” ISNA quoted an expert on oil and petrochemical commodities in Mehrafarin Brokerage Company as saying.

Lately, the IME has not recorded any offering of vacuum bottom – bitumen’s raw material – by the Esfahan Oil Refining Company (EORC), which is an implicit indicator of the ongoing surge in bitumen demand. Due to high transportation costs, most customers are keeping an eye on the EORC’s upcoming offerings.

Transportation costs in the bulk offering of commodities are very important, as the EROC geographically suits customers, while despite the offerings of Tehran and Tabriz Oil Refining Companies, which grabbed investor’s attention, a majority of customers still opt for the EROC’s vacuum bottom.

Demand for bitumen in local market is in the doldrums, with traders and customers tracking oil prices instability, with lingering concerns over possible further declines in oil prices.

The ministry of road and urban development is said be the only customer for bitumen in local markets, while other customers prefer to wait until stability returns to global oil markets.

Following continuous export of large volumes of bitumen within the past few years, Iran has turned to a major hub for bitumen price discovery in the region.