06 November 2012 09:46 [Source: ICIS news]
The suspension of road construction projects will increase bitumen supply to the coking feedstock and bunker fuel oil blending markets in November, sources said.
However, the current soft prices of coking feedstock will weigh on bitumen prices, the industry sources added. Prices for coking feedstock softened as a result of weak demand from the downstream soft distillates market.
Bitumen, also known as asphalt, is used in road construction and paving as well as in the water proofing of homes and industrial buildings. The paving of roads can be done only in warmer seasons such as summer and autumn.
The AH-70/90 bitumen was traded at CNY4,800-4,900/tonne ($768-784/tonne) in north
The prices of AH-70/90 dropped by CNY100/tonne to CNY4,850-4,950/tonne in east
Prices declined in late October in north
Bitumen prices have softened in the Chinese domestic market since mid-October as a result of price cuts in east
On average, prices of AH-70/90 bitumen decreased by CNY40-100/tonne across
However, domestic bitumen producers maintained their high output throughout October because of high margins from softer crude prices.
($1 = CNY6.25)
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