Corrected: Iran’s bitumen prices rise on firmer rial, tight supply

12 November 2012 08:42  [Source: ICIS news]

Correction: In the story headlined “Iran’s bitumen prices rise on firmer rial, tight supply” dated 12 November 2012, please read in the last paragraph … settling their deals based on the exchange rate of IR31,000 against $1, compared with the exchange rate of IR39,000 versus $1 in mid-October… instead of …settling their deals at IR31,000, compared with IR39,000 in mid-October. A corrected story follows:

SINGAPORE (ICIS)--The prices of Iranian bitumen have been soaring in the past two weeks because of tight supply and a firmer rial (IR), industry sources said on Monday.

On 12 November, drummed bitumen of Iranian origin were traded at $460-480/tonne FOB (free on board), 20% higher than half a month ago, ICIS data showed.

Prices of Iran-origin drummed bitumen may continue its uptrend movement for another 2-3 weeks, as the two largest Iranian exporters, Jey and Pasagard, are heard to be resuming their supply only then, market players said.

The supply of Iranian bitumen was tightened in the past few weeks when the country’s two major suppliers, Jey and Pasagard, halted trading on the Iran Mercantile Exchange (IME) for three weeks because of softening prices, traders said.

The two companies typically export a combined total of 50,000-60,000 tonnes of bitumen each month, representing over 90% of Iran’s total exports, IME data showed.

A firming rial against the US dollar is also lending support to the prices of Iranian cargoes, traders said.

Iranian exporters are settling their deals based on the exchange rate of IR31,000 against $1, compared with the exchange rate of IR39,000 versus $1 in mid-October, they added.

($1 = IR12,274.46)


By: Alfa Li
020-3762 0271



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