China’s bitumen export prices down on poor SE Asia demand

18 May 2012 05:46  [Source: ICIS news]

SINGAPORE (ICIS)--China's bitumen export prices have fallen because of the sluggish demand in Southeast Asia, traders said on Friday.

The FOB (free on board) price of Chinese bitumen loaded in late May was $650/tonne (€513.5/tonne) on 16 May, a fall of $20/tonne or 3% from April's levels, according to C1 Energy, an ICIS service in China.

China's producers plan to supply three bitumen cargoes in May to Vietnam at around $675/tonne CFR (cost & freight) Haiphong, Vietnam importers said.

The CFR price includes FOB price, freight and trader’s profit.

Chinese producers posted a relatively high price at first, but cut their price later because of resistance from Southeast Asia buyers,” a Vietnam importer said.

In addition, the price sof Thai and Singaporean bitumen were adding pressure on the prices of Chinese cargoes, analysts commented.

The prices of China’s June cargoes may decrease further because Southeast Asia’s demand is unlikely to increase noticeably in the short term, market sources said.

($1 = €6.32)

By: Alfa Li
020-3762 0271

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