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India’s January bitumen imports fall on year
Some bitumen-carrying vessels have also been stopped at Indian ports because of documentation issues, increasing fears of a supply constraint in the country. India’s January bitumen imports of 218,000t were down by 22pc from a year earlier, data from the Indian oil ministry’s Petroleum Planning and Analysis Cell (PPAC) show.
Demand for bitumen, which is used in road construction, has been on a recovery path since falling to a one-year low in August last year, but non-seasonal rains and a colder-than-expected winter in some parts of India have weighed on roadworks. Ongoing issues with a disbursement of project funds from a few state governments have also pressured road activity.
Bitumen consumption is expected to pick up further at the end of March or early April, but market participants are apprehensive after a few vessels arriving from the Middle East were scrutinised at the western Indian ports of Pipavav, Kandla and Mundra because of issues with documentation of the origin of the cargoes.
These vessel scrutiny issues could potentially lead to a product shortage in the Indian market in the near term. Meanwhile, a recent surge in prices in Iran and its subsequent impact on Indian domestic-listed prices may also push some traders to continue looking for imported cargoes.
Indian state-controlled refiners have lifted listed prices for bulk and drummed bitumen in Mumbai by 4,740 rupees/t ($63/t) for the second half of February in line with rising import prices. Argus assessed bulk prices at $430/t fob Iran for the week ended 18 February, the highest since November 2014. Prices have also increased by 40pc since early January. Drum prices were assessed at $470/t fob Iran.
Indian refiners are keeping bitumen production at normal levels and looking to maximise output in the coming months. Bitumen output of 486,000t last month was up from 433,000t in December but down from 526,000t in January 2021, according to the PPAC data.
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