Bitumen / Asphalt
Overview
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.
Latest bitumen / asphalt news
Browse the latest market moving news on the global bitumen and asphalt industry.
Viewpoint: Trump tariffs could affect US asphalt supply
Viewpoint: Trump tariffs could affect US asphalt supply
Houston, 9 January (Argus) — US president-elect Donald Trump's threat to impose tariffs on Canadian goods could restrict asphalt supply and lift prices for US buyers this year. Trump announced plans to put a 25pc tariff on all imports from Canada and Mexico after he takes office on 20 January. Asphalt market participants said a potential tariff on Canadian imports could just be a "bargaining chip," and the Canadian Association of Petroleum Producers noted the tariff would push energy costs higher for American consumers. But Trump doubled-down on his threat on 7 January, insisting "we are not treated well" by Canda. If he sticks to his plan , market participants fear asphalt prices could "go through the roof." Kpler data show about 73pc of US Atlantic coast waterborne asphalt imports originated in Canada in 2024. The US east coast is net short asphalt, with just one domestic producer — independent refiner PBF Energy. PBF shut a crude distillation unit in late October because of poor refining economics. East coast waterborne imports of Canadian asphalt reached their highest level in June 2024, according to Kpler data going back to 2017. This helped push cif New York prices down by $95/st from June to early October, an unusual trend for the summer and early autumn. Railed asphalt volumes could also be affected, with monthly US imports of Canadian railed asphalt totaling 5.23 mn bl through the first 10 months of 2024, US Energy Information Administration (EIA) data show. A potential trade war and possible labor disputes could also cut into asphalt volumes. US importers could turn to other supply sources, but some supply uncertainty stretches across the Atlantic with multiple refinery shutdowns in the Mediterranean expected in 2025. This comes, however, alongside weaker asphalt demand . Rising asphalt flows from Venezuela could also help moderate affects from potential US tariffs. But market participants are more cautious of Venezuelan supply and the potential return of sanctions under Trump . The planned restart of an asphalt unit at Curacao's idled 335,000 b/d Isla refinery this year could also slightly temper a potential supply shock. Feedstocks uncertain Trump's tariffs could also alter heavy crude flows and reduce US asphalt production. Canada is the top supplier of crude to the US and accounts for 65pc of all crude runs in the midcontinent. Monthly PADD 2 imports of Canadian crude oil totaled about 863mn bl in January-October 2024, up by 8pc compared with the same period last year, according to EIA. Meanwhile, asphalt production in the region rose by about 7pc over the same period. Potential tariffs could divert Canadian crude from the US to Asia-Pacific via the Trans Mountain Expansion pipeline and boost heavy crude costs for US refiners. Further south, potential tariffs on Mexican imports could also hit asphalt production. Mexico is the second-largest supplier of crude to the US and produces a heavy grade with most volumes landing on the US Gulf coast. By Cobin Eggers Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Viewpoint: Asia bitumen supply to rise, demand mixed
Viewpoint: Asia bitumen supply to rise, demand mixed
Singapore, 6 January (Argus) — Increased bitumen exports from south China could boost supplies in southeast Asia this year, but increased consumption is only expected in a few key Asian economies in 2025. Pent-up demand from previously incomplete projects in 2024 could bolster near-term buying interest. Projects in key Vietnamese, Indonesian, and Chinese markets were delayed in 2024 because of inclement weather and government funding issues, with some project cancellations in Indonesia. Overall demand in Australia was also lacklustre because of limited funding amid high inflationary pressure. This was exacerbated by higher import costs in the third quarter of 2024 when demand outpaced supply. Strong high-sulphur fuel oil (HSFO) prices and weaker export margins curbed bitumen production in key exporting countries, including Singapore, South Korea and Thailand since the second quarter. This is likely to change in 2025 with production expected to return to more typical levels, sources close to southeast and northeast Asian refiners told Argus . Higher export availability from south China, especially from independent refiner Chambroad's 80,000 b/d refinery in Hainan, could limit import demand for cargoes from other exporting regions, market participants added. The Hainan refinery has plans to export around 400,000-500,000t in 2025. A 270,000 b/d refinery located in peninsular Malaysia, which refrained from producing bitumen since mid-2024, is likely to resume operations in 2025. The 175,000 b/d Map Ta Phut refinery in Thailand, which prioritised fuel oil production in 2024, is also likely to increase bitumen output this year, adding to the overall export supply pool. "If you compare current HSFO and bitumen prices, they are at very similar levels. From a margins perspective, the refiners have little reason to cut bitumen production," a southeast Asian trader said. "[But] if demand is not sufficient enough to absorb the supplies, they may have to cut output." Meanwhile, global trading firm Vitol's 50,000-70,000t bitumen storage facility in Malaysia's Tanjung Bin is expected to be operational in 2025. This would increase the volume of imported cargoes and enable inter-regional arbitrage . But whether the inventories would mainly cater to the Asian market has yet to be determined. Demand prospects mixed Chinese consumption expectations are mixed. This year is the final year of China's five-year economic plan and the government is set to turn its focus toward infrastructure investment, which typically drives bitumen consumption. The recent monetary policy announcement may also support demand. But market participants are unsure if the policies will be enough to stabilise the real estate sector. Higher domestic output will also weigh on import demand. Vietnamese consumption is expected to accelerate in 2025 as many projects were delayed because of prolonged funding issues. At least one importer estimates that consumption will rise by 20-30pc on the year to around 1.2mn-1.3mn t as funding issues are anticipated to subside. Thai and Malaysian demand in 2025 is expected to be similar to 2024 levels, with a stable number of projects and likely no change in policies. Consumption is anticipated to increase by at least 5pc on the year in New Zealand. But importers from neighbouring Australia expect a 10pc drop on the year with few large projects and most maintenance works limited to filling potholes, and budget availability still uncertain. Demand is also unlikely to increase in Indonesia as infrastructure funds will remain tight, given that the recently elected government will continue to prioritise financial support programmes and social initiatives, southeast Asian traders told Argus . Logistical constraints to extend Bitumen vessel availability was tight in the last quarter of 2024 and is likely to persist into the first quarter of 2025. Weak demand and reduced production have weighed on liquidity in the second half of 2024, which caused some vessels from Asia to move to other regions. But vessel tightness is likely to ease in the second half of 2025, as several new 8,000 dead weight tonne (dwt) and a few larger vessels around 16,000-17,000 dwt are likely to be delivered in this year, market participants said. There are far fewer new builds for smaller 5,000 dwt vessels, which may indicate an atypical shift towards larger ships to transport bitumen in Asia. By Sathya Narayanan, Leanne Tan, Claire Ng, and Chloe Choo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Viewpoint: India bitumen demand growth prospects mixed
Viewpoint: India bitumen demand growth prospects mixed
Singapore, 3 January (Argus) — Prospects of India's 2025 bitumen consumption growth are mixed, as state governments' delayed disbursement of project funds are likely to persist and weigh on demand while the many incomplete projects could boost consumption. India is a net bitumen importer and the biggest consumer of Middle East origin bitumen, especially from Iran. India's bitumen consumption had touched record highs in 2022 and 2023 and surpassed 8mn t/yr, despite prolonged payment delays, as importers had offered atypically longer credit terms to road contractors. All importers and traders are "struggling with payment recovery", an Indian importer said. Many contractors are demanding credit as several state governments have not released funds, the importer added. "Demand is not bad, but it really depends on funding. Demand won't increase by a lot [next year], but it should be quite stable [to 2024]." High inventory pressure forced importers to offer atypically bigger discounts to liquidate cargoes, which squeezed their profit margins, especially as import costs increased given a supply crunch in Iran. But there is no dearth of projects as many were delayed because of funding constrains, importers said. Some state-controlled refiners anticipate consumption to grow next year, albeit marginally. Refiners were previously forced to offer larger discounts against listed values to attract more customers, which weighed on their profit margins this year. This could continue into 2025 would ultimately pressure refiners to reduce bitumen output and increase production of other higher valued oil products. Indian refiners typically produce around 5mn t/yr, which accounts for around 55-60pc of total bitumen consumption. "We are only expecting a 3-4pc increase in demand on year as no new major road projects have been announced, so it is hard to see a larger growth," a source close to a state-refiner said. "But imports will increase if we reduce production, given growth will still be in [the] positive. So next year will not be that fantastic in comparison and there would not be any capacity augmentation for bitumen." This indicates that the central government's expectation that Indian bitumen consumption will rise by 14pc on the year to 10mn t during the ongoing financial year ending March 2025 could be at risk. Limited Middle East exports Vacuum bottom feedstock supply has been erratic in Iran, and feedstock transportation from national refineries to private bitumen producers has also been delayed this year, which market participants expect to persist in the coming year. This will limit feedstock availability and in turn bitumen output, increasing export cost especially for higher priced VG40 grade, which is imported by India. Tight supply has also increased congestions at the Bandar Abbas port, forcing vessel owners and importers to incur higher demurrage, increasing costs and weighing on import appetite. There are also fears that the new Trump administration may impose more sanctions and other political measures on Iran next year, further clouding the export outlook. Iranian central bank's recent announcement to phase out the Nima foreign exchange platform has increased uncertainty on the rials' value against the US dollar as importers and exporters will now have to trade based on mutually agreed exchange rates, with the free market rate still depressed. Meanwhile, Baghdad's recent directive to stop oil and other oil products from entering Iran, unless the exports are licensed by state-owned Somo, could also limit drummed bitumen exports as bitumen producers do not typically possess a Somo licence. Iraqi drums are generally transshipped out of Bandar Abbas. The recent upgrade of Bahrain's state-owned Sitra refinery to 380,000 b/d from 267,000 b/d will primarily boost middle distillate and naphtha output, weighing on bitumen production. Middle East cargoes are also typically exported to southeast and east Asia during low demand periods in India. Seaborne prices in Asia rose to multi-year highs in 2022 and import appetite for relatively cheaper Middle East-origin bulk cargoes increased, which continued in 2023. Appetite from Asia this year was mostly from China and Vietnam, as other buyers preferred Asia-origin cargoes because of compatible specifications and proximity. "The Middle East-Asia arbitrage is closed, and we will see very little-to-no cargoes from the UAE to Asia," a southeast Asia-based trader said. This is because Middle East-origin cargo cfr prices are not likely to be competitive to Asian cargoes, with supply and loading constraints in Iran adding to the uncertainties. By Maedeh Mazinani, Sathya Narayanan and Chloe Choo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Viewpoint: Road auctions may buoy Brazil asphalt demand
Viewpoint: Road auctions may buoy Brazil asphalt demand
Sao Paulo, 2 January (Argus) — Demand for asphalt in Brazil is expected to remain elevated in 2025, boosted by a number of highway projects planned to be tendered this year. The Ministry of Transportation expects to seek tenders in 15 auctions this year . Overall, the Brazilian Association of Highway Concessionaires looks for 3,000km worth of roadway projects to be awarded at the federal level, along with another 4,000km at the state level. That is up from 10 auctions for projects covering 4,000km of paving work at the federal and state level last year. This anticipation of such an active paving year is upending the conventional wisdom that a year without elections means less asphalt demand. Typically, paving work on public streets and highways is more concentrated during election years, when mayors and governors focus their public budgets on infrastructure work to appease voters. President Luiz Inacio Lula da Silva's administration has asked lawmakers to allocate R$12.8bn for the National Department of Transportation Infrastructure in 2025, up by nearly R$240mn from the amount approved for 2024. The National Congress is expected to take up the annual budget law in February, after the parliamentary recess, and may make considerable changes. State-controlled Petrobras expects to sell around 2.7mn t of asphalt in 2025, or 1pc more than its 2024 projections. This past year was record-breaking for the Brazilian asphalt market, with more than 2.76mn tons of asphalt sold through October, according to oil regulator ANP. This was 10pc more than what was sold in the same period in 2023, in a year in which asphalt demand reached its highest level since 2014. Asphalt imports increased in 2024 as a result. Brazil's asphalt sales exceeded local production by an average of 18pc, boosting the purchase of imported material earlier in the year. US Gulf coast exports to Brazil reached an all-time high in October , according to data from Kpler. During the first 11 months of 2024, Brazil imported 300mn t of asphalt, also primarily from the US Gulf. By Julio Viana Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Spotlight content
Browse the latest thought leadership produced by our global team of experts.
European Bitumen Market Update July 2024
An overview of European Bitumen prices since the beginning of the year and a round-up of key events that have impacted the market.
Asphalt Story: Asian and Middle Eastern Markets
Join Argus experts as they breakdown the market drivers for asphalt and what the outlook for prices are the rest of this year and beyond.
Podcast - 19/10/23Asphalt Story: Americas Market
Join Argus experts as they breakdown the market drivers for asphalt and what the outlook for prices are the rest of this year and beyond.
Explore our bitumen / asphalt products
Key price assessments
Argus prices are recognised by the market as trusted and reliable indicators of the real market value. Explore some of our most widely used and relevant price assessments.
