WPB: Vietnam significantly increased its bitumen imports from the Middle East last year, driven by more attractive pricing compared to shipments from Asian suppliers. The overall volume of imports experienced year-on-year growth, largely supported by rising demand from incomplete infrastructure projects.
As a country that primarily relies on foreign sources for road construction materials, Vietnam imported approximately 1.14 million tons of bitumen in the previous year, marking a 10% increase compared to 1.04 million tons the year before, according to trade data. The volume of bitumen imported specifically from the Middle East reached 382,000 tons, reflecting an impressive 49% rise compared to the prior year.
The expansion in import volumes was closely linked to the surge in ongoing infrastructure projects, particularly highway construction, which intensified in the latter half of the year. However, some industry insiders emphasized that price competitiveness played a crucial role in determining trade flows and sourcing preferences.
“The pricing environment is the primary factor influencing where imports originate,” stated a Vietnamese importer.
Throughout the year, bulk bitumen shipments from Iran were consistently priced at a discount of around $131 per ton compared to Singapore’s benchmark ABX 1 bitumen prices. The gap became even more pronounced between August and October, when supply shortages caused by production reductions pushed Singapore’s seaborne prices higher, leading to Middle East cargoes being traded at discounts ranging from $160 to $180 per ton. Meanwhile, shipping costs for transporting bitumen from the Middle East to Vietnam were estimated at $120 per ton, according to market sources.
However, Vietnam’s prolonged adverse weather conditions suppressed demand during most of the year, particularly until the final quarter, preventing domestic prices from increasing. This situation further encouraged local buyers to seek more affordable Middle Eastern cargoes instead of higher-priced alternatives from other regions.
According to an importer, buyers only turned to suppliers from other Asian countries when specific material specifications were required, otherwise, there was little incentive to import from elsewhere.
Trade data revealed that imports from Singapore totaled 383,000 tons, reflecting a 13% increasefrom the previous year. In contrast, shipments from China and South Korea experienced sharp declines, falling by 44% and 60%, respectively.
Higher seaborne prices and elevated freight costs from both China and South Korea further discouraged Vietnamese buyers from sourcing bitumen from these markets, industry participants noted.
Looking ahead to 2025, expectations remain optimistic, with bitumen demand projected to remain steady to strong, driven by the continuation of infrastructure development. Import volumes are expected to range between 1 million and 1.3 million tons.
Additionally, the faster allocation of project funds has facilitated a smoother financial flow for contractors, enabling them to accelerate road construction.
By Bitumenmag
Bitumen, Market, Vietnam, Price
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