New York, 7 August (Argus)
South Africa
Domestic bitumen prices rose by R150/t ($22/t) at the beginning of this month lifting prices to R2895/t ($420/t) in the coastal refineries of Durban, R3005/t ($436/t) in the Johannesburg region and R2780/t ($403/t) in Cape Town.
Bad winter weather brought road-paving activity to a halt, particularly in the western and southern Cape. Heavy storms around George and Reiseland in the southern Cape severely damaged roads in the area, which was expected to lead to major road maintenance activity once the weather improves.
The bad weather was not limited to South Africa. Its neighbour Namibia, which in recent month had been a major purchaser of South African bitumen, also suffered with heavy rain and low temperatures.
In the eastern Cape bitumen truck loading out of the 185,000 b/d Shell-BP Sapref refinery in Durban was due to resume later this week following the shutdown of the refinery’s steam facilities between 1-9 August which halted bitumen loadings. The refinery entered a two-month rolling maintenance shutdown in the second half of June. Limited storage facilities at the refinery has meant that the refinery has only been able to supply local customers. Other customers have had to rely on supplies from the neighbouring Engen refinery and the Natref refinery at Sasolburg near Johannesburg.
Nigeria
The price delivered into Nigeria was assessed higher at $390-405/t c+f Nigeria, in line with the recent rise in European high sulphur fuel oil (HSFO) prices. The assessed price reflects the price of Ivory Coast bitumen delivered into Nigeria and is the equivalent of an $85/t premium to the Argus published high quotation for HSFO cargoes fob Mediterranean.
Send comments to feedback@argusonline.com
ntcw