in the past 4 years in the market, I've always asked myself why the deals are limited between Iran and few countries. those I know are Kenya, India, Sudan, Iraq, Pakistan, China, Tajikistan and some more countries. but for example Azerbaijan and Turkey in neighborhood have never been in the list, as far as I know.
Turkey has a big market for construction and bitumen is surely needed for many road construction and other necessities. I had an email from a Turkish bitumen trader which I responded:
Dear Mr.Emad,
We are a young trading firm from Turkey, regarding petrochemicals.
We want to supply Iran bitumen to Turkish construction firms.
Therefore we want to make co-operation with you.
I prepared a sample chart to show our customers.
Please check it and advise us if we have to add somethings.
With which refinery do you make business? JEY or Pasargad?
How much quantity do you supply us max.?
Payment terms?
And, I will meet big construction firms this week, most probably they will ask me the valid price of bitumen.Could you please give me drum and bulk price?
For bulk, do you or customer arrange ISO tank?
Best Regards,
Serkan OZTURK
I responded:
Hi Serken,
Thanks for your email. I’d be pleased to cooperate with you. As you might found out, I’m a trader/dealer of bitumen, not a supplier.
We buy from both Jey and Pasargad refineries. We pay in cash mostly and this is a key problem now. because if we want to apply on LC, we have to finance the deal ourselves which depending on the case may need 500,000 up to millions of dollars. And sometimes it’s not possible for us.
I checked the charts, they are standard and fine, you may find more details on packing etc on Jey refinery, Pasargad Oil and Iran mercantile Exchange market websites.
We can supply up to 4-5K MT per month.
Payment is preferred to be in cash! (obviously everybody prefers to receive cash!) but if I can finance the deal, I will accept LC.
Price for in drums is roughly 530 USD per MT, for bulk it starts from 400, depending on the location.
Will keep in contact with you, if you were interested in other fields, let me know as well.
Warm regards,
Emad Honarparvar
* don't consider the price up to date since the email is a little bit old.
Monday, May 10, 2010
Friday, April 30, 2010
Iran Oil and Gas Exhibition ended
The 15th International Oil, Gas and Petrochemical Exhibition covered more than 10 task forces including consultant engineer groups, spare parts constructors, technical and commercial service provider companies, oil products producers, processing equipments producers, fuel consumption efficiency companies and research and training sector, general contractors, companies active in information technology fields.
among these companies you could find most of major Iranian bitumen suppliers like Pasargad and Jey refineries.
to me it sounds like iranian bitumen suppliers are losing their int'l markets since the local demand is too much and likely to take over the national bitumen supplement. just like the petrol we have to import though we have large reservoir of crude oil, I can see in future we have to import bitumen to supply our road constructions and other related projects.
the price of Iranian bitumen is still high for the same reason, but the higher quality comparing to other bitumen suppliers is still a reason for constructors to buy Iranian bitumen.
among these companies you could find most of major Iranian bitumen suppliers like Pasargad and Jey refineries.
to me it sounds like iranian bitumen suppliers are losing their int'l markets since the local demand is too much and likely to take over the national bitumen supplement. just like the petrol we have to import though we have large reservoir of crude oil, I can see in future we have to import bitumen to supply our road constructions and other related projects.
the price of Iranian bitumen is still high for the same reason, but the higher quality comparing to other bitumen suppliers is still a reason for constructors to buy Iranian bitumen.
Monday, April 12, 2010
Where to check bitumen prices online
it seems the bitumen market is getting hot again as the oil prices are rally and as a side effect (certainly lagging a little bit) bitumen prices follow crude oil prices. a friend has asked:
Dear Mr.Emad,
I have seen your site about bitumen in Iran and was awfully appreciated.
As a broker,I need a site to be aware about daily price up and downs in Iran,is there any?
It helps me to accelerate my contacts and responding to emails I receive.
I have sent you email via Hotmail but not sure about receiving it maybe Virus prevent it to drop.
Hope to have fruitful coordinating in a two sides benefits all time.
the answer is easy, Iran's bitumen is traded in Iran Mercantile Exchange market which you can check on their website or you can check our updated price here: Iran Bitumen Market
right now the prices of Bitumen are as below:
Pasargad Oil bitumen 60-70 Abadan 390 USD per metric Tonne FOB Abadan
Pasargad Oil bitumen 60-70 Arak 390 USD per metric Tonne FCA Arak
Pasargad Oil bitumen 60-70 Bandar Abbas 430 USD per metric Tonne FOB Bandar Abbas
Pasargad Oil bitumen 60-70 Tehran 390 USD per metric Tonne FCA Tehran
Pasargad Oil bitumen 85-100 Tabriz 390 USD per metric Tonne FCA tabriz
Pasargad Oil bitumen 60-70 Shiraz 390 USD per metric Tonne FCA Shiraz
you have to add roughly 100 USD per MT for drumming and transportation costs + THC at port + financial costs if you are buying from a dealer. right now as far as I know it make it 580 USD per MT FOB Bandar Abbas in new steel drums considering above costs.
Dear Mr.Emad,
I have seen your site about bitumen in Iran and was awfully appreciated.
As a broker,I need a site to be aware about daily price up and downs in Iran,is there any?
It helps me to accelerate my contacts and responding to emails I receive.
I have sent you email via Hotmail but not sure about receiving it maybe Virus prevent it to drop.
Hope to have fruitful coordinating in a two sides benefits all time.
the answer is easy, Iran's bitumen is traded in Iran Mercantile Exchange market which you can check on their website or you can check our updated price here: Iran Bitumen Market
right now the prices of Bitumen are as below:
Pasargad Oil bitumen 60-70 Abadan 390 USD per metric Tonne FOB Abadan
Pasargad Oil bitumen 60-70 Arak 390 USD per metric Tonne FCA Arak
Pasargad Oil bitumen 60-70 Bandar Abbas 430 USD per metric Tonne FOB Bandar Abbas
Pasargad Oil bitumen 60-70 Tehran 390 USD per metric Tonne FCA Tehran
Pasargad Oil bitumen 85-100 Tabriz 390 USD per metric Tonne FCA tabriz
Pasargad Oil bitumen 60-70 Shiraz 390 USD per metric Tonne FCA Shiraz
you have to add roughly 100 USD per MT for drumming and transportation costs + THC at port + financial costs if you are buying from a dealer. right now as far as I know it make it 580 USD per MT FOB Bandar Abbas in new steel drums considering above costs.
Sunday, February 7, 2010
Iran Bitumen Analysis specification
Iran Bitumen Analysis
American Association of Stat Highway Officials
PACKING DETAILS: For one 20’Container load, the packings are as follows
BULK CARGO:
*For FOB Bulk,the buyer can arrange the Vessel(Tanker) at the loading at the port.
*The source of bitumen is Iran
*Loading port is always Bandar Abbas
*Shipment often is 21 to 30 days after receiving your transferable L/C (dividable LC).
*The surveyor for Bitumen is SGS
Specifications | Bitumen | Blown Bitumen | Bitumen 80/100 | Penetration Bitumen | Test Method |
Specific Gravity@25/25C | 1.01-1.06 | 1.01-1.06 | 1.01-1.05 | 1.00-1.05 | D-70 |
Penetration@25C | 40/50 | 60/70 | 80/100 | 85/100 | D-5 |
Softening Point C | 52/60 | 49/56 | 45/52 | 45/52 | D-36 |
Ductility@25C | 100Min. | 100min | 100min | 100min | D-113 |
Loss on Heating (wt%) | 0.2Max. | 0.2Max. | 0.5Max. | 0.5Max. | D-6 |
Drop in Penetration after Heating % | 20Max. | 20Max. | 20Max. | 20Max. | D-6 & D-5 |
Flash Point C | 250Min. | 250Min. | 225Min. | 225Min. | D-92 |
Solubility in (wt%) | 99.5Min. | 99.5Min. | 99.5Min. | 99.5Min. | D-4 |
| Spot Test | Negative | Negative | Negative | Negative | A.A.A.S.H.O.T.102 |
PACKING DETAILS: For one 20’Container load, the packings are as follows
| Weight | Weight per drum | Number of Drums per container | per 20 feet container |
| Net weight: Gross weight: | 150kg(+/- 3kg)per drum 160kg(+/- 3kg)per drum | 110 drums | 18.5MT(+/-3%) 19.6MT(+/-3%) |
| Net weight: Gross weight: | 180kg(+/- 3kg)per drum 190kg(+/- 3kg)per drum | 110 drums | 19.8MT(+/-3%) 20.9MT(+/-3%) |
| Net weight: Gross weight: | 200kg(+/- 3kg)per drum 217kg(+/- 3kg)per drum | 80 drums | 16.0MT(+/-3%) 17.4MT(+/-3%) |
BULK CARGO:
*For FOB Bulk,the buyer can arrange the Vessel(Tanker) at the loading at the port.
*The source of bitumen is Iran
*Loading port is always Bandar Abbas
*Shipment often is 21 to 30 days after receiving your transferable L/C (dividable LC).
*The surveyor for Bitumen is SGS
Monday, December 28, 2009
Quantity orders vs. Quality orders
one of problems bitumen buyers may experience is that in many projects you don't need more than 100-200 MT bitumen. like a small road construction or a medium road repair service, or a small refinery which produces bitumen roof seals and protection systems. While in nowadays' trade world which nobody likes to engage with many middle men and middle businesses (and indeed the communication helps you do so), for such amounts you have to go to a middle man dealer to buy a partial quantity of his load on ship. and there's a big scam here when you want to buy a small amount of bitumen, because you may encounter unqualified bitumen suppliers (while big suppliers are not interested in such deals) and small suppliers' quality sometime... sucks!
Any solution? I'll show you!
any trader and bitumen broker can provide such quantity in less than a week. in fact, there are always less than 500MT availabilities in ports while we are collecting a big order. the problem with your tiny order is not availability, it's the payment. if you are ready to pay cash on delivery or cash in advance, and if you handle the shipment yourself, there you are. all you need to do is to contact reputable dealers you know and mention you need that amount for first bid and you pay in cash and get the bitumen in the port (not FOB)
after you bought the bitumen, you should be able to contact a shipping line or a forwarder, pay the shipping cost and the THC (Terminal Handling Charge in Iran is roughly 45 USD per 20feet container) and get the Bill of Ladings yourself.
Any solution? I'll show you!
any trader and bitumen broker can provide such quantity in less than a week. in fact, there are always less than 500MT availabilities in ports while we are collecting a big order. the problem with your tiny order is not availability, it's the payment. if you are ready to pay cash on delivery or cash in advance, and if you handle the shipment yourself, there you are. all you need to do is to contact reputable dealers you know and mention you need that amount for first bid and you pay in cash and get the bitumen in the port (not FOB)
after you bought the bitumen, you should be able to contact a shipping line or a forwarder, pay the shipping cost and the THC (Terminal Handling Charge in Iran is roughly 45 USD per 20feet container) and get the Bill of Ladings yourself.
Monday, October 5, 2009
Consultancy service buying bitumen from Iran
I’ve experienced many different problems regarding payments, delivery, SGS inspections etc with international bitumen traders. To be honest it’s also hard to work with Iranian suppliers since they show minimum flexibility in negotiations and making agreements. obviously, a major part of these problems and non flexibilities are due to sanctions on Iran, economic embargoes etc. What I can provide your firms in this conditions to ease the process of buying and importing bitumen from Iran, is consultancy service including:
Please feel free to contact me for further information: emad @ irxp.com
- Quoting from various reliable sources
- Negotiation and signing contract with chosen supplier
- Banking issues:
- Dividing your transferable LC from world prime banks through our Bank in Dubai or Cyprus
- OR: receiving your LC in Iranian banks from international banks who are able to issue such LC
- SGS and Insurance services
- Transportation, ocean freight and Terminal Handling services
- Drumming process supervisory
Please feel free to contact me for further information: emad @ irxp.com
Saturday, August 22, 2009
Iran Bitumen - risks again with an alert
as I mentioned in my previous post, buying bitumen from uncertified and small workshops is risky. below you see an alert posted by Mr. Aghili, Iran Bitumen Analyst and trader:
Recently, and in the past disastrous results of road projects at the hands of emerging rings of smugglers are being revealed simply by the result of Road Projects world-wide. Due to demand for very low prices there are many of these rings increasing in today’s Bitumen market and this is why the legitimate suppliers are finding it harder and harder to compete with them.
What the smugglers do is place Mazut, Gilsonite, or Crude in the bottom of the drums before bitumen is poured on top. It is said up to 20, 40 or even 50% of the said impurities are placed on the bottom of each drums before 100% pure NIOC bitumen is poured on top. What occurs then is that SGS comes in and takes samples from the top, and gives them the SGS certification. The road contractor uses it, let's say in Sudan in their Road project not knowing that within 7 to 12 months the road which they have produced at heavy costs and time constructed will begin to fall apart in patches across the entire paved road. Many which use equipment to apply the impure bitumen are complaining of clogs in their equipment’s pipes a well.
Because, the cost of Mazut is 35.00 USD per MT and Bitumen much more. They save actually 300 USD x 500 KG which is 150.00 USD per MT. Naturally the can outbid any true supplier any time they wish. Our estimates in the past had been 20% impurities which would save them 68.00 USD per MT based on the present market rates of 335.00 USD per MT in Bulk.
We are obtaining pictures of disaster jobs as we speak to reveal them to our clients and Agents world wide. Please be patient for this.
If anyone is offering Bitumen at 10.00 USD more or less than a reliable supplier, we can say it is expected, but when someone offers 30.00 USD or 50.00 USD per MT less or more then they are actually doing it below our own cost. We base this based on our profit margin after costs of drumming and all other associated costs of exporting the bitumen. Our profit margin is no more than 20.00 USD per MT inclusive of 5.00 USD per MT for unforeseen costs or we add this to the profit margin. This all depends on the market trends.
We should not have to battle the people whom we work with, but the people whom we work with, should believe in us and educate buyers of the reason prices are as such. We would like to state that the people selling at incredible rates are very questionable. The projects which the false bitumen is prepared with last no longer then 7 to 12 months maximum.
Presently our union is gathering more information on such suppliers and confronting them where possible.
Unfortunately, SGS inspection will not break open a new steel drum unless there is previous suspicion. With these companies functioning with multiple names even that will be a small deterrent.
Recently, and in the past disastrous results of road projects at the hands of emerging rings of smugglers are being revealed simply by the result of Road Projects world-wide. Due to demand for very low prices there are many of these rings increasing in today’s Bitumen market and this is why the legitimate suppliers are finding it harder and harder to compete with them.
What the smugglers do is place Mazut, Gilsonite, or Crude in the bottom of the drums before bitumen is poured on top. It is said up to 20, 40 or even 50% of the said impurities are placed on the bottom of each drums before 100% pure NIOC bitumen is poured on top. What occurs then is that SGS comes in and takes samples from the top, and gives them the SGS certification. The road contractor uses it, let's say in Sudan in their Road project not knowing that within 7 to 12 months the road which they have produced at heavy costs and time constructed will begin to fall apart in patches across the entire paved road. Many which use equipment to apply the impure bitumen are complaining of clogs in their equipment’s pipes a well.
Because, the cost of Mazut is 35.00 USD per MT and Bitumen much more. They save actually 300 USD x 500 KG which is 150.00 USD per MT. Naturally the can outbid any true supplier any time they wish. Our estimates in the past had been 20% impurities which would save them 68.00 USD per MT based on the present market rates of 335.00 USD per MT in Bulk.
We are obtaining pictures of disaster jobs as we speak to reveal them to our clients and Agents world wide. Please be patient for this.
If anyone is offering Bitumen at 10.00 USD more or less than a reliable supplier, we can say it is expected, but when someone offers 30.00 USD or 50.00 USD per MT less or more then they are actually doing it below our own cost. We base this based on our profit margin after costs of drumming and all other associated costs of exporting the bitumen. Our profit margin is no more than 20.00 USD per MT inclusive of 5.00 USD per MT for unforeseen costs or we add this to the profit margin. This all depends on the market trends.
We should not have to battle the people whom we work with, but the people whom we work with, should believe in us and educate buyers of the reason prices are as such. We would like to state that the people selling at incredible rates are very questionable. The projects which the false bitumen is prepared with last no longer then 7 to 12 months maximum.
Presently our union is gathering more information on such suppliers and confronting them where possible.
Unfortunately, SGS inspection will not break open a new steel drum unless there is previous suspicion. With these companies functioning with multiple names even that will be a small deterrent.
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