Bitumen prices down for record low in 2010

Iranian Bitumen Prices down!!

we have a new record low price for bitumen in Iran since early 2010 now!
Bandar Abbas port in new steel drums (or bulk) from Jey and Pasargad oil refinery for as low as 400 USD per MT.

adding THC will give you rough price for FOB Bandar Abbas, which is about 413 USD per MT. the delivery is upon a 30-40 days period and it's important to notice the maximum partial shipment would be 3000 MT per month. I believe whoever promises more delivery will face problems in his duties. we have recently succeeded in LC payment terms but Iranian traders have still experiencing difficulties and problems with LC payments.
some FCR destinations have below costs to be added:

• Nheva Sheva, India - 10 USD per MT
• Shanghai, China - 7 USD per MT
• Jebel Ali, Dubai, UAE - 5.5 USD per MT
• African port like Mombasa, Kenya / Port Sudan - 65 USD per MT

how to deal with Bitumen business - packing sector

Packing industry has a big stake in bitumen business in Iran (also worldwide). the most common ways are bulk bitumen carrying, steel drums and Polybags. all the 3 methods are used widely in Iran and business in this regard sound promising for investors and medium size business owners. I've heard a lot from companies from EU and China about new inventions in this sector but haven't yet met any trader or refinery using these methods.

I personally prefer Polybags, as a business to start. why? because it's more innovative, needs less capital and has some advantages comparing to two other elder brothers! Some advantages using Bitumen packaging bags are:

1. Bitumen Packed In 35Kg (+/-5%) so it's easier for lifting & carriage
2. Environment friendly and  safer than Drums. Polybag melts along with Bitumen in melting process at site.
3. No waste Residual Bitumen left compared with Iron/steel drums.
4. Cleaner process all the way until reaching the end-user.

regarding Steel drums, let me advise you one thing: never go for used drums!! neither as a trader, nor as a customer. cold rolled steel drums coated in anti rust black with description as Follows:
Height: 98 cm
Diameter: 50 cm
Thickness: 5/6 mm
Gross Weight: 190 Kg
Net Weight: 180 Kg
Tolerance: +/-3%
these drums are much more expensive and the size of company capital needs to be tremendously higher.
and there are many big companies active in this field. the last dis-advantage about this business is you are always affected by fluctuations of metal prices world-wide.

costs: polybags are 20 USD per MT, Drums 30-35USD per MT and Bulk depends on transportation costs
also polybags are 50% cheaper in regard of human labor cost during the packing process.
and:
Cargo charges, melting process, waste handling and disposal, loss of material are other facts to be considered by traders.
the problem is the environment temperature, which should be lower than 30 degree Celsius.

well, if you have made up your mind and want to start a business in Iran regarding packing bitumen, you have to know many traders, buyers and all the main and major suppliers. for this reason maybe I can help you!

how to trade bitumen?

first of all, let me tell you this is about how to trade real bitumen! not trading bitumen as a commodity in commodity markets (like NYMEX or FOREX etc)
The real bitumen is used for many construction projects and industries like road and house constructions, resins and other chemical usages.

Trading bitumen means buying or selling, or importing and exporting bitumen from its sources in countries like Iran, to destinations like Africa, India, China or Europe.

To trade bitumen within Iranian resources you have to buy it from:
a. Iran Mercantile Exchange Market
b. a dealer

a) in this case, you have to be authorized by IME. this happens when you register a company in Iran and provide the IME with enough documents on your technical and financial abilities to deal bitumen internationally. when you got authorized, you can buy bitumen from sources like Jey and Pasargad refinery directly. you buy in Exchange Market and you got the delivery in factory or in ports.

b) if you are trying to buy from a dealer, you agree on the payment terms and delivery conditions, you provide less documents and efforts, but you pay 5-10 USD per Metric Ton more. it's really important to buy from someone who has a good reputation. Don't involve yourself with middle man and commissioners who are not authorized dealers themselves.

I can help you with both above ways. feel free to contact me emad at irxp dot com

Investing your capital and time in Bitumen business?

How do you feel about starting a new business in bitumen field?! My main business is providing marketing consultancy services to international companies who want to market and promote their brand, products or services in Iran, I also import industrial equipments and export raw materials from Iran. so simply bitumen can not be my main business. but I've learned a lot about bitumen related business in my own country which I'd like to share with you. so if you are wondering how to start an asphalt business, here are some suggestions to help you get off to the best possible start, but first remember, I look from this direction: Iran is exporter of bitumen and you are probably investing your new business inside Iran:
in this post I will list the title businesses and in future posts I will extract details about each case:

1. Trading Bitumen
2. Packing business (drumming, bagging etc)
3. transportation
4. shipping forwarders
5. sub-products and services
6. road construction
7. producing butimen
8. producing related products

what's the common issue among all above issues? bitumen!
I will write you guys back soon...

Bitumen pricing

ICIS is a Bitumen Pricing report firm with reports every month on Bitumen market, price changes and market stats. I use their service to keep up to date with other countries and origins. I recommend you to check it as well, but remember, the prices they provide won't be the last price you can get. there are other issues not mentioned in these reports and prices are few percents different from what the end client may get.
the reports include:

• The relevance and accuracy of prices/grades reported
• General feedback on the content and commentary of the prototype
• Whether you would purchase the report if the report was to launch?

 check the site here: www.icis.com

PET flake

My company is now providing new product: PET Flakes
these flakes are produced from low PVC bottles and other PET products, completely clear, white, washed and packed in 35kg bags to reduce the transportation costs.
Our recycling and flake making machine and warehouse is located in south west of Tehran, so our transportation costs are optimized. the treatment process is including crushing, washing, separating and drying is completely held in the factory.

More specification:
Place of Origin: Iran
PVC PPM below 100 (PVC impurity included in recycled PET)
color: white

Capacity: Maximum 240 MT per month
Price (20-June-2010):
Tehran (factory): 795 USD
Bandar Abbas Port: 819.5 USD
FOB Bandar Abbas: 822

PLEASE CONTACT FOR UPDATED PRICE

CFR Shanghai or any other Chinese, Hong Kong, India or other destinations are available.
delivery 3 weeks from the order

India and Middle East bitumen trade report

The below report is generated by ICIS Pricing about bitumen trade state and pricing on 13 May 2010. for full report and other regions' data visit their website or contact Nadine.Spoeri[at]icis[dot]com for subscription enquirers.

As demand for imports continued to slow in India ahead of the country’s monsoon season, downward pricing pressure was seen on Iranian export prices. A 1,000 tonne bulk fixture for the Middle East markets was heard at $410/tonne FOB Bandar Abbas. With the possibility to export to India from June to August remaining very limited, most Iranian exports would find their way to Africa or the Middle Eastern markets.

Meanwhile, in the Indian domestic market, local prices remained stable after the rupee depreciated versus the US dollar, therefore neutralizing the impact of slightly lower CFR prices. List prices were unchanged at rupee (Rs) 26-27/kg ex-refinery with additional discounts of Rs 3-4/kg applicable on these list prices.

The outlook for pricing in the next three months remained soft amid the traditional rainy season low demand. The demand during this time would reduce to 25-30% of the normal and local refineries would divert production to fuel oil.