Bitumen / Asphalt
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Global bitumen and asphalt spot prices are influenced by changing supply and demand fundamentals, VGO and crude prices. Argus is the only provider of global bitumen and asphalt spot prices assessed by a global team of reporters, based on market trade. Spot price coverage includes regional truck, rail and seaborne prices.
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Unexpected issue hits Mol's Hungary bitumen production
Unexpected issue hits Mol's Hungary bitumen production
London, 9 April (Argus) — Hungarian bitumen production has been significantly reduced this week because of problems at Mol's 161,000 b/d Szazhalombatta refinery during some maintenance work. The production cutback has had an unspecified knock-on effect on Mol's Zalaegerszeg plant, which is directly connected with Szazhalombatta and that produces a number of standard penetration grades of bitumen along with specialised bitumen products like polymer-modified bitumen (PMB) and rubber bitumen. A source familiar with Mol's refining operations said today that bitumen production at both refineries should be back to normal at the end of this week, enabling a return to full output and supply to domestic and export markets from next week. The Szazhalombatta refinery is expected to undergo a full refinery shutdown in June and July, according to market participants. Bitumen demand in central and northwest Europe has been steadily picking up over recent weeks at the start of the road paving season. Mol is a key regional truck exporter, especially into the Romanian market. By Keyvan Hedvat and Jonathan Weston Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Bitumen output restarts at Miro's Karlsruhe refinery
Bitumen output restarts at Miro's Karlsruhe refinery
London, 4 April (Argus) — Bitumen production at Miro's 310,000 b/d Karlsruhe refinery in southwest Germany restarted yesterday and truck loadings resumed today, around one week after it was halted. Market participants with regular bitumen offtake from the refinery said the halt to bitumen production was because a crude oil delivery was "contaminated" because its water content was too high. Feeding crude with excessive water content into a refinery crude distillation unit can damage trays in the tower. Crude with high water content needs to allow water to settle to the bottom of storage tanks before it can be processed. It takes longer for water to settle in heavier crudes that generally have higher bitumen content than lighter crude grades. Bitumen players said the contaminated crude was heavy, causing an extended stoppage to bitumen output and supply from the Miro refinery. Market participants said only penetration grades 50/70 and some 70/100 — used mainly for asphalting road surfaces — are being loaded today while softer pen 160/220 that's mainly used for general construction work like roofing would start becoming available over the 6-7 April weekend. Bitumen supplies will again be disrupted next week because of planned 8-15 April maintenance work affecting the gantry used for loading bitumen trucks, halting most bitumen truck loadings, with no pen 50/70 set to be available to the market over that period, with produced volumes going into storage. Some volumes of pen 160/220 will however continue to be lifted from the refinery during the period of the work. By Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Sonatrach takes bitumen tanker under time charter deal
Sonatrach takes bitumen tanker under time charter deal
London, 4 April (Argus) — Algerian state-owned Sonatrach's Hyproc shipping arm has completed a time charter deal to take 7,645dwt bitumen tanker 3B Destiny from BB Energy Group's trading affiliate 3B Trading for one year, with two further one-year extension options. The initial one-year deal, starting 1 April, means the 3B Destiny replaces the 7,499dwt Poestella that Sonatrach had been using under a similar time charter arrangement with that vessel's owners, Singapore headquartered shipping firm Bilsea International, since the start of 2021 under a similar annually renewable deal. The tanker has been operating alongside the two Sonatrach-owned and Hyproc-operated bitumen tankers, the Ain Zeft and Ras Tomb , both 4,999dwt. The Poestella was re-delivered back to its owners at the end of March, and is now being used to move a cargo from Tarragona, Spain, to Antwerp, Belgium, under a so far undisclosed spot or time charter arrangement. Bitumen shipping market participants said the 3B Destiny deal had probably been agreed at daily rates in a $15,000-16,000 range, applying to the initial one-year time charter period, although the pricing details under the deal have not been disclosed by either counterparty. Sonatrach's bitumen tankers are usually dedicated to shipping cargoes to the firm's array of Algerian import terminals, helping feed a key Mediterranean market that last year imported just under 617,000t, down from 741,000 in 2022, according to Vortexa data. After a slow start to Algerian construction activity and bitumen demand this year, the rate of road project work and bitumen import requirements surged last month, with local market participants estimating nearly 80,000t of bitumen in March. After next week's anticipated halt to most construction work in the country because of the Eid Al-Fitr holiday at the end of Ramadan, activity and demand are set to surge again. The government is pushing to complete road and highway projects in the run-up to presidential elections to be held on 7 September. By Keyvan Hedvat Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Baltimore bridge collapse forces freight changes
Baltimore bridge collapse forces freight changes
Washington, 26 March (Argus) — Vessel traffic in and out of the Port of Baltimore, Maryland, has been suspended indefinitely in the wake of a container ship collision early today that brought down the Francis Scott Key Bridge, an accident that will force the rerouting of coal, car and light truck shipments. The prolonged closure of one of the largest ports on the US east coast could have a ripple effect on trade flows across much of the US, as shippers grapple for alternatives in the absence of a certain reopening timeline. Search and rescue efforts are still ongoing in the Patapsco River, after the 116,851dwt Dali headed to Colombo, Sri Lanka, slammed into a bridge support. The crew had lost control of the vessel. The Dali is owned by Grace Ocean and managed by Synergy Marine Group. The Maryland Port Administration said it does not know how long it will take for the shipping channel to be cleared and for traffic to resume. Shipping companies are bracing for a closure of at least two weeks, but many expect the clean-up effort could take significantly longer. President Joe Biden vowed the federal government will provide whatever resources are needed to get the port "up and running again as soon as possible." The port is a major trade hub for steam and coking coal, automobiles and scrap metal. Many market sources are still trying to determine whether the disruption will be dramatic enough to move prices. But coal markets were already being affected today. Baltimore is home to two key coal export terminals: eastern US railroad CSX's Curtis Bay Coal Piers and coal producer Consol Energy's Consol Marine Terminal. The facilities are upstream of the bridge, meaning ships will not be able to serve them until the route reopens. The terminals handle thermal and coking coal from Northern and Central Appalachia. They have a combined export capacity of 34mn short tons (30.8mn metric tonnes). The two terminals loaded 2.4mn t of coal in February, up from 2.1mn t a year earlier, according to analytics firm Kpler, mostly exports to India and China. An India-based trader said that the suspension of coal exports will probably raise prices in India, as brick kilns enter the peak production season in the summer. Buyers could look to petroleum coke as a substitute, but the higher sulphur content may not be appealing to some users despite the higher calorific value. Prices for deliveries to northern Europe are also likely to rise given that the Netherlands, Germany and Belgium combined are the second-largest market for North Appalachian coal. April API 2 futures rose by $2/t to $113.30/t. The incident has added a "level of volatility [which] could have big implications," a European paper broker said. The lack of information has prompted some coal producers to hold off on activating force majeure clauses in their contracts. Curtis Bay is served only by CSX, while CSX and fellow eastern carrier Norfolk Southern serve Consol. CSX said it is in contact with existing coal customers and contingency plans are being implemented. The railroad at this point intends to keep Curtis Bay open but will continue to assess the circumstances moving forward. Norfolk Southern did not respond to questions. Some scheduled Baltimore coal exports may be redirected to the other three eastern US coal export terminals in Hampton Roads, Virginia, but such reroutings likely will entail increased costs. Not all coal mines will be able to shift terminals. Such decisions will depend on available capacity in Hampton Roads. Exports from the three terminals in January reached a five-year high , signaling somewhat limited capacity. Mine location and railroad access may also determine whether coal can be rerouted, an industry source said. But some producers do not have much of a choice about trying to send coal to Hampton Roads. They may need the cash so will be forced into a decision. The producers most vulnerable to delays may be Consol and Arch Resources. Arch's Leer coking coal mine may be in the best position because it co-owns Dominion Terminal Associates in Hampton Roads with Alpha Metallurgical Coal Resources. The sudden lack of export capacity could put a floor under US coal prices, which have mostly been falling since last year amid low domestic demand. The competition to replace Baltimore coal exports could prevent further cuts, another coal trading source said. Metals sources say the accident will have only isolated effects on the global ferrous scrap market, but many market participants are still assessing the situation. The port is the 10th largest ferrous scrap export port in the US, and over the last five years an average of 44,000 metric tonnes/month of ferrous scrap was exported from Baltimore, according to US Department of Commerce data. But the port closure is likely to affect other freight. Baltimore is the nation's top handler of automobile traffic. Motor vehicles and parts accounted for about 42pc of all Baltimore port imports and 27pc of all exports, according to state data. The Port of Baltimore handled 847,158 cars and light trucks in 2023. "It's too early to say what impact this incident will have on the auto business — but there will certainly be a disruption," said John Bozzella, chief executive of industry trade group Alliance for Automotive Innovation. Dry bulk freight rates likely unaffected Several sources told Argus Baltimore's closure is unlikely to have a major impact on dry freight rates despite short-term interruptions to coal transports. "We are in the shoulder months with less demand for thermal coal," a shipbroker said, suggesting mild global temperatures means the collapse "may not have too much of an impact" on freight markets overall. Vessel traffic in ports such as Charleston, South Carolina, and Savannah, Georgia, may increase on diversions from Baltimore. Kpler identified 17 vessels that will likely be impacted because they are either in the Port of Baltimore or were expected to load there in the coming days. By Abby Caplan, Gabriel Squitieri, Luis Gronda, Evan Millard and Brad MacAulay Port of Baltimore coal terminals Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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