Argus Bitumen€¦ · · 2017-06-08Pockets of bitumen 60/70 demand emerged, including from north...
Transcript of Argus Bitumen€¦ · · 2017-06-08Pockets of bitumen 60/70 demand emerged, including from north...
Copyright © 2017 Argus Media Ltd
Pockets of bitumen 60/70 demand emerged, including from north
Africa, but most markets were slow with summer holidays
and falling crude and fuel oil prices hitting buying activity.
Domestic requirements in Mediterranean exporting coun-
tries like Italy, Spain and Greece remained at seasonally low
levels, before an expected rise from September onwards.
But export activity was boosted by a surge in Moroccan
import demand. That was thanks to the continued shutdown
of the Samir refinery in Mohammedia, with no prospect for
a restart before October at the earliest, amid deep financial
problems affecting the company.
In Europe cargo export price levels relative to fob R t-
Bitumen prices at key locations $/t
Low High
Domestic prices
Northern Germany 300 316 +1
Northern France 344 361 +1
Hungary 333 344 +1
Italy 305 316 +1
South Korea 714 741 nc
Indonesia 430 430 -6
Singapore 415 425 nc
terdam high-sulphur fuel oil quotes were assessed $15-20/t Export prices Delivery method stronger in the -$5/t to +$10/t range, reflecting full utilisa- Poland-Germany truck, ex ref 272 283 -10
tion of regional bitumen tanker fleets, shipments into the Hungary-Romania truck, ex ref 277 294 -10
new Dagenham terminal in southeast England and arbitrage Italy cargo fob 206 210 -11
nean market. Ivory Coast cargo fob 260 270 -9
Bahrain prices dropped to nearly a seven-year low at Iran cargo fob 280 290 nc
$325/t fob. Singapore prices also saw a fall, trading at Singapore cargo fob 335 345 -10
around $340/t. The gap between high-sulphur fuel oil 180cst Taiwan cargo fob 315 325 -10
Singapore and bitumen 80/100 widened to nearly $100/t impacting Delivered cargo prices cfr
negotiations in the region.
Iranian prices are also expected to see a downward price Mediterranean Gebze, Turkey, bulk 241 251 -15
revision next week, with traders expecting to see a mini- North Africa Alexandria, bulk 253 263 -15
mum of $15/t downward revision to vacuum bottom feed- East Africa Mombasa, drum 403 413 nc
stock prices. West Africa Lagos, bulk 309 319 -13
South China coast 355 400 -12
Argus Bitumen Europe, Africa, Middle East and Asia-Pacific prices and commentary
Incorporating Argus Asphalt Report
Issue 17-033| Friday 2 Jun 2017
Summary Price
interest in moving cargoes into a strengthening Mediterra-
North Sea Dated vs Rotterdam domestic $/bl East China coast 350 410 -12 North China coast 345 350 -15
North Sea Dated
80
Rotterdam domestic
70
60
50
40
30
28 Nov 16 06 Mar 17 29 May 17 21 Jun 17
CONTENTS
Key bitumen prices 1
Map of waterborne bitumen prices 2
Northwest and central Europe 3-4
Mediterranean 5-6
Sub-Saharan Africa 7-8
Asia-Pacific and Middle East 9-13
Bitumen news 14-16
Issue 17-033| Friday 2 Jun 2017
Argus Bitumen
A O I M P I S, FO
Copyright © 2017 Argus Media Ltd Page 2 of 16
High
Rotterdam, Netherlands
-5
+10
+18
Spain -15 -10 +2
Italy -15 -10 +8
Greece -10 -5 +4
Albania -35 -25 +5
Morocco -50 -40 +5
Ivory Coast +40 +50 +10
rotterdam
$220/t
Italy
$208/t
Albania
$191/t
Spain
$208/t
Greece
$213/t
South Korea
$305/t
Morocco
$176/t
Ivory coast
$266/t
bahrain
$325/t
Iran
$285/t
Singapore
$340/t
taiwan
$320/t
thailand
$320/t
CARGO FLOWS
The continued shutdown of the 220,000 b/d Samir refinery
in Mohammedia amid financial difficulties drew a surge of
export cargoes into Morocco.
The 6,654 DWT Asphalt Summer was scheduled to arrive
in Mohammedia on 25 August with a cargo from the Agio
Theodori terminal in Greece, the first of four such planned
consignments from the Greek terminal to Moroccan ports.
At least one of the cargoes is to be delivered into the Nador
terminal in eastern Morocco.
Europe and Africa cargo export differentials to HSFO $/t
Waterborne markets, differential to HSFO $/t Mediterranean cargo freight rates $/t
Low High ±
Rotterdam
Italy
Ivory Coast 75
50
25
Spain
Greece Aspropyrgos-Corinth-Gebze-Mersin 30 35 nc
Tarragona-Ghazaouet 30 40 nc
Livorno-Rades 45 55 nc
Mohammedia-Ghazaouet 30 40 nc
Aspropyrgos-Corinth-Alexandria 40 50 nc
0
-25
-50
-75
05 Sep 16 09 Jan 17 01 May 17 21 Jun 17
Mideast Gulf to Africa freight rates $/t
Low High ±
Bandar Abbas/Jebel Ali-Mombasa (drums) 40 50 nc
Bandar Abbas/Jebel Ali-Dar es Salaam (drums) 40 50 nc
Bandar Abbas/Jebel Ali-Djibouti (drums) 40 50 nc
Copyright © 2017 Argus Media Ltd Page 3 of 16
Issue 17-033| Friday 2 Jun 2017
Argus Bitumen
N ANd N A p A N A
summary Cargo export price levels relative to fob Rotterdam high-sul-
phur fuel oil quotes were assessed $15-20/t stronger in the
-$5/t to +$10/t range, reflecting full utilisation of regional
bitumen tanker fleets, shipments into the new Dagenham
terminal in southeast England and arbitrage interest in mov-
ing cargoes into a strengthening Mediterranean market.
uk
The UK market remained slow as the August holiday period
hit paving activity. Prices were assessed £10/t down at £255-
270/t on an ex-works basis in southern England.
The downward price move was partly linked to antici-
pated Trafigura-supplied truck flows from the new Stolthaven
Dagenham terminal in the river Thames in east London. The
terminal received a fresh bitumen cargo, shipped from La
Coruna, Spain, on board the Theodora on 20 August after the
first cargo was discharged there on 9 August.
France/Benelux The French market was especially quietly and thinly dis-
cussed in the August holiday period, while Benelux markets
were expected to start becoming active from the last week
of August after the restart of mixed asphalt plants after
usual summer holiday period shutdowns.
Prices held steady after recent intra-month losses reg-
istered in Belgium and the Netherlands. Low-prices truck
export flows were heading for Germany from Benelux. A
bitumen cargo was being moved on board the 5,897 DWT
tanker Iver Action from Antwerp to Mostaganem, Algeria,
arriving 28 August.
Germany Falling HSFO prices and weak August demand meant the
domestic bitumen market was muted.
Official prices for some domestic refinery volumes stayed
at €320-330/t ex-works, but price assessments stayed sub-
stantially below those values, reflecting actual selling prices
by most suppliers. Significant rebates were being offered on
official prices to stimulate business.
Low priced imports have been coming into Germany from
Antwerp as well as Poland where export prices to Germany
slipped to around €250/t ex-works.
Tight infrastructure budgets were hitting bitumen
demand in Germany, estimated at least 10pc down on last
year.
Next year could see improved demand because of an
expected rise in spending on infrastructure.
Northwest and central Europe bitumen prices
€/t $/t
Low High ± Low High ±
Domestic prices, fob
Southern UK £/t 255 270 -10 399 423 -12
Rotterdam, Netherlands 240 260 nc 266 289 +0
Antwerp, Belgium 240 260 nc 266 289 +1
Northern Germany 270 285 nc 300 316 +1
Northeast Germany 265 280 nc 294 311 +1
Southern Germany 260 275 nc 289 305 +1
Southwest Germany 260 275 nc 289 305 +1
Western Germany 265 280 nc 294 311 +1
Hungary 300 310 nc 333 344 +1
Romania 295 310 -8 327 344 -7
Czech Republic 280 300 nc 311 333 +1
Export prices, fob
Poland-Germany (truck) 245 255 -10 272 283 -10
Czech Republic-Germany (truck) 260 270 nc 289 300 +1
Poland-Romania (truck) 245 255 -5 272 283 -5
Hungary-Romania (truck) 250 265 -10 277 294 -10
Rotterdam (cargo) 212 227 -2
Domestic prices, delivered
Southern UK £/t 270 280 -10 423 438 -13
Brussels 250 270 nc 278 300 +1
Northern France 310 325 nc 344 361 +1
Central France 315 330 nc 350 366 +1
Crude and refined products
Low High ±
Urals cif Rotterdam $/bl 42.44 46.06 -2.25
Fuel oil 3.5%S, fob RMG barge $/t 203.75 231.00 -20.00
Fuel oil straight-run 0.5% fob cargo $/t 275.00 300.50 -13.62
Fuel oil straight-run M-100 cif cargo $/t 212.75 239.00 -20.00
Vacuum gasoil 0.5%S cif cargo $/t 329.75 353.50 -14.12
Czech republic/poland/Hungary Demand in the Czech Republic was steady with some regular
demand for bitumen from construction work. The supply
situation was more than keeping pace with demand.
Market participants said there had been no impact on
bitumen supply from a fire at the Litvinov refinery which has
halted petrochemical production. The fire at the petrochem-
ical plant has not directly affected the 103,000 b/d refinery.
Cheaper Polish imports have been offered into the Czech
market, undercutting local supplies as domestic demand in
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Issue 17-033| Friday 2 Jun 2017
Argus Bitumen
N and n p n
Poland remains so poor, pushing product out for export.
Hungarian trucked bitumen flows to Poland were indi-
cated around €245/t ex-works.
romania Domestic road construction activity and bitumen require-
ments remained at low levels, with August proving to be a
weak month because of hot weather restricting asphalt pav-
ing work while the holiday period has also had a dampening
impact on project activity.
While road construction projects are still expected to
generate sizeable bitumen requirements during September
and October, a 20pc downward revision in the 2015 calendar
year Romanian government road construction budget — an-
nounced in mid-August — was expected to reduce the rate
of activity and dampen overall bitumen consumption this
autumn. The budget cut amounted to around 1bn Romanian
New Leu (€220mn), with the cut likely to discourage some
banks from lending for Romanian infrastructure projects.
Price levels continued to slip, with Serbian export flows
to Romania from the Pancevo refinery indicated around
€250/t ex-refinery. Hungarian export prices slipped to €255-
265 ex-refinery, with €8-10/t discounts applied on some
sales to large customers. The bulk of Polish export flows to
Romania were being sold at around €250/t ex-refinery, €5/t
lower than the previous week, although even lower prices
were heard.
Domestic truck sales from the Rompetrol refinery in
Ploiesti were assessed in the €295-310/t ex-refinery range,
€5-10/t down on previous levels.
Balkans
Export volumes from the Serbian refinery in Pancevo were
Germany: North vs South $/t
Northern Germany Southern Germany
400
350
300
250
200
28 Nov 16 06 Mar 17 29 May 17 21 Jun 17
reported at prices down to around €220/t ex-refinery for
truck shipments to Bulgaria and €215/t for flows to FYROM
(Macedonia).
Supplies from the Hellenic Petroleum refinery in Thessa-
loniki, northern Greece, into Bulgaria were indicated around
$250/t (€220-225/t), with those truck shipments being
made at $12/t premiums to fob Mediterranean HSFO quotes.
Bosnia-Herzegovina export flows from the Bosanski Brod
refinery were reported at $235-24/t (€210-215/t) ex-refinery
for Pen 50/70, 70/100 and 160/220 grades.
While stiff competition was bearing down on regional
price levels, export availability from Serbia was being re-
stricted by domestic demand for highway project work.
Bulgarian bitumen demand, much of it in the form of
polymer-modified bitumen, is expected to be stepped up
from end-August/early September after the holiday season.
Total bitumen consumption in the country is expected to
jump to around 170,000t this year after dropping to 120,000t
in 2014, from 140,000t in 2013. The main bulk of bitumen
requirements are for work on sections of the Struma and
Maritza highways. Prices for standard PMB grades used in
Bulgaria were indicated at €360-365/t ex-works from Serbia,
but as high as €450/t ex-works Burgas, Bulgaria.
The 83,000 b/d Thessaloniki refinery is to be shut for a
few days in the first half of September for maintenance
work, although the shutdown is not expected to impact on
bitumen availability (see news section).
portugal Buoyant bitumen demand in Portugal means there will be no
export cargoes available from the Viana do Castelo terminal
— close to the Galp bitumen-producing refinery in Oporto in
the north of the country — until October at the earliest.
scandinavia Norwegian bitumen consumption jumped by around 40pc
year on yearin the month of June, underlining a bullish per-
formance during the first half of 2015 (see news).
A planned September shutdown at Shell’s 70,000 b/d
Fredericia refinery in Denmark is expected to impact bitu-
men availability on that market, but potentially also flows
from the refinery into Norway.
The Swedish bitumen market has been stable this year,
with estimated consumption remaining in the 450,000-
500,000t range with construction activity back under way
throughout August after the usual shutdown in July.
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Issue 17-033| Friday 2 Jun 2017
Argus Bitumen
M A A MA MM A
Summary While domestic requirements in Mediterranean exporting
countries like Italy, Spain and Greece remained at season-
ally low levels, before an expected rise from September
onwards, export activity was boosted by a surge in Moroccan
import demand. That was in turn to the continued shutdown
of the Samir refinery in Mohammedia, with no prospects for
a restart before October at the earliest, amid deep financial
problems affecting the company.
Cargo activity to Morocco from Greece, Italy and Spain,
coupled with sizeable continuing flows into Egypt and Alge-
ria, were a factor — along with falling high-sulphur fuel oil
prices — in driving down discounts to Mediterranean fuel oil
quotes. Italian export discounts were assessed at $10-15/t,
versus $15-25/t previously, with some volumes reportedly
offered at flat to $5/t discounts to fuel oil quotes – although
some volumes were still being sold around $20/t discounts.
Greek exports were indicated at $5-10/t discounts to fuel
oil and Spanish volumes at $10-15/t. Moroccan and Albanian
assessed discounts also narrowed, although Morocco is for
now purely an importer, while no Albanian export cargoes
were reported being offered.
The regional cargo market strength meant there was less
interest in arbitrage exports to the US, while the Mediter-
ranean continued to attract flows from northwest Europe.
Movements to Saudi Arabia continue, with a trading firm
looking for a tanker to move 5,000-7,000t of bitumen from
Ravenna, Italy, to Jubail or Yanbu for prompt to early Sep-
tember shipment, although no booking was yet made.
Morocco
The continued shutdown of the 220,000 b/d Samir refinery
in Mohammedia amid financial difficulties (see news), with
Italy domestic less bitumen fuel oil blendstock value $/t
300
250
200
150
100
50
28 Nov 16 06 Mar 17 29 May 17 21 Jun 17
Mediterranean bitumen prices
Local currency/t $/t
Low High ± Low High ±
Domestic prices, fob Italy 275 285 nc 305 316 +1
Southern France (delivered) 315 330 nc 350 366 +1
Northeast Spain 340 360 nc 377 400 +2
Southwest Spain 320 340 nc 355 377 +1
Izmit, Turkey 684 684 nc 237 237 -9
Izmir, Turkey 684 684 nc 237 237 -9
Batman, Turkey 712 712 nc 247 247 -9
Kirikkale, Turkey 712 712 nc 247 247 -9
Export prices, fob $/t Differential to HSFO
Italy -15 -10 +8 206 210 -11
Greece -10 -5 +4 210 216 -15
Spain -15 -10 +2 206 210 -16
Albania -35 -25 +5 186 196 -14
Morocco -50 -40 +5 170 180 -14
Delivered cargo prices, cfr Alexandria, Egypt 253 263 -15
Gebze-Mersin, Turkey 241 251 -15
Ghazaouet, Algeria 222 232 -15
Rades, Tunisia 253 263 -11
Economics Mid ±
Bitumen’s value as a fuel oil blendstock $/t 174 nc
Crude and refined products, 15-21 Aug
Low High ± Basrah Light fob Sidi Kerir $/bl 38.29 41.91 -2.12
Urals cif Augusta $/bl 43.09 46.66 -2.28
Iran Heavy fob Sidi Kerir $/bl 40.37 43.94 -2.83
Fuel oil 3.5% fob $/t 207.25 233.75 -18.88
VGO 0.5% fob $/t 319.50 345.00 -14.88
no prospect of an early restart, drew a surge in cargo export
business to the country. Morocco is usually a net bitumen
exporter, with its two bitumen units at Mohammedia having
420,000 t/yr of combined production capacity.
Traders and ship brokers expect the refinery to remain
shut at least until October, meaning bitumen cargo import
flows are set to continue. A crude tanker was awaiting dis-
charge at Mohammedia, but it was unclear if and when the
volume can be moved into the refinery to enable its restart.
The 6,654 DWT Asphalt Summer was scheduled to arrive
in Mohammedia on 25 August with a cargo from the Agio
Theodori terminal in Greece, the first of four such planned
consignments from the Greek terminal to Moroccan ports.
At least one of the cargoes is to be delivered into the Nador
terminal in eastern Morocco. Additionally, a cargo was
Copyright © 2017 Argus Media Ltd Page 6 of 16
Issue 17-033| Friday 2 June 2017 Argus Bitumen
M A A MA MM A
moved from Cadiz to Mohammedia on board the 4,999 DWT
Sunpower, arriving 17 August, while a Spanish refiner moved
a cargo on board the Castillo de Pambre on 19-20 August
into Laayoune in the disputed territory of Western Sahara
governed by Morocco.
Turkey
Political uncertainty and its impact on construction sec-
tor activity is set to continue after Turkish President Recep
Tayyip Erdogan announced snap elections will be held on 1
November. That followed inconclusive elections in June that
were followed by the inability of Turkish political parties to
form a governing coalition.
The lack of government has badly impacted decision-
making and fund allocation for road and other infrastructure
projects in recent months, forcing down bitumen demand
as some projects have been halted and others slowed by
contractors worried about payment for project work.
Discounts to some customers below published levels
helping to discourage imports. One buyer said such discounts
in some cases now amounted to levels up to TL100/t for
larger orders.
Tupras published prices remained by 21 August at latest
levels set on 15 August after TL21/t price cuts. In dollar
terms, prices for pen 50/70 and 70/100 bitumen supplied
domestically from Tupras refineries in Izmit and Izmir fell
over the week by $8-9/t to the $235-240/t range.
Some import cargoes were still arriving, with a 4,500t
cargo moved on board the Lagan into Gebzel, to be fol-
lowed by another cargo on board an undisclosed vessel for
end-August arrival. A separate cargo shipment on board the
Iver Agile was reported being made by a trader into storage
tanks in Mersin.
Spain Bitumen demand levels remained low during the holiday
period in August, but there was still some road construc-
tion work generating some bitumen requirements before an
expected resumption in activity from September onwards.
A busy construction period is expected in the run-up to the
general election on 20 December.
The planned maintenance shutdown for about a month
from early September of crude and vacuum distillation,
as well as other units, at the Cepsa refinery in Huelva is
expected to impact bitumen production. Although stocks are
likely to be built up ahead of the turnaround, market avail-
ability is likely to be impacted as the autumn road paving
season gets under way in Spain coinciding with a surge in
export business to Morocco.
Algeria
There was a continued steady stream of import shipments
into the busy Algerian market. The Black Shark discharged
a cargo into Skikda on 17-18 August, to be followed by the
Iver Brilliant on 18-20 August, while the Sonatrach vessel Ain
Zeft moved a cargo from Tarragona to Oran and then Skikda
is an apparent two-port discharge, arriving in Skikda on 20
August.
Argus Asia-Pacific and Middle East Bitumen 2015
2-4 September 2015 • Singapore
3 days with the industry’s most senior executives
from across the world
Italy domestic and Mediterranean HSFO barges $/t
600 Italy domestic HSFO Med
500
400
300
200
100
28 Nov 16 06 Mar 17 29 May 17 21 Jun 17
www.argusmedia.com
Copyright © 2017 Argus Media Ltd Page 7 of 16
Issue 17-033| Friday 2 June 2017 Argus Bitumen
SUB-SAHARAN A A AR N AR
$/t Low High ±
Summary East African buying was expected to pick up after an antici-
pated drop in Iranian export prices on 22 August, while the
South African market was entering a three-month period
that is likely to see substantial demand for numerous road
Sub-Saharan Africa bitumen prices
Local currency/t
Low High ±
Domestic prices, fob
South Africa 5,000 5,500 nc 388 427 -5
projects. Import/export prices $/t
Ivory Coast, fob Abidjan (export, cargo) 260 270 -9
West Africa Nigeria, cfr Lagos (import cargo) 309 319 -13
Market activity remained thin, with no enquiries for cargoes Ghana, cfr Takoradi-Tema (import, cargo) 340 370 nc
or tankers to move bulk bitumen from Mediterranean or Kenya, cfr Mombasa (import, drums) 403 413 nc
northwest European export terminals to destinations in west Tanzania, cfr Dar es Salaam (import, drums) 403 413 nc
Africa. Price levels were pushed lower by another drop in Freight rates $/t
HSFO prices, but bitumen export price spreads versus HSFO Abidjan-Lagos-Warri-Port Harcourt (cargo) 35 45 nc
strengthened. Abidjan-Takoradi-Tema (cargo) 30 40 nc
There was still low-level interest in moving bitumen in Tarragona-Lagos-Warri-Port Harcourt (cargo) 100 130 nc
containers into regional outlets. A recent enquiry for 3,000t Bandar Abbas-Jebel Ali-Mombasa (drums) 40 50 nc
of bulk bitumen into Nouakchott, Mauritania, could not be Bandar Abbas-Jebel Ali-Dar es Salaam (drums) 40 50 nc
fulfilled because of lack of terminal facilities to receive the Bandar Abbas-Jebel Ali-Djibouti (drums) 40 50 nc
cargo. There were subsequently reports that bitutainer vol-
umes were being sought instead, responding to anticipated
demand for work on the Mauritanian section of the Trans-
West African Coastal Highway from Mauritania to Nigeria.
There were no signs of a recovery in Nigerian construc-
tion activity that would generate bitumen demand and
import business, with the country’s new government still
preoccupied with sweeping changes in government depart-
ments. Falling crude oil prices are also cutting available
funds for investment in infrastructure and other areas.
Fresh data indicated that the pattern of Ivory Coast
exports had radically changed over the past year, while the
overall volumes remain low (see p8). Export shipments from
the exporting country, all of them made from the SMB bitu-
men refinery and terminal complex at Abidjan, to Nigeria
and Ghana fell sharply in the first half of 2015 to 9,320t and
Asphalt del West Africa and fuel oil fob Med $/t
18,110t respectively. Those levels were down from 35,940t in
the first six months of last year for Nigeria-bound flows and
29,770t for volumes shipped to Ghana. By contrast Ivory
Coast flows to Togo jumped over the year to 60,880t from
13,000t, indicating a switch to movements into a deep-water
terminal in Lome from which small parcels are then moved
to regional outlets.
east Africa
A sharp drop in Iranian domestic vacuum bottom prices –
amounting to $15-30/t — was expected to be announced at
the start of the new Iranian calendar month, correspond-
ing with 22 August. That was in turn expected to result in
declines in bitumen export prices from the country to east
African and other destinations.
The extent of the likely fall will depend in part on
currency movements, with the US dollar remaining strong
500
400
300
200
100
West Africa waterborne, cfr Med HSFO against the Rial. Some traders were already offering
drummed Iranian export cargoes at prices down to $325-330/
t fob Bandar Abbas in anticipation of the VB price cuts, but
buyers were holding back from making any orders as they
awaited lower priced offers from across the market.
There were regular requests for volumes into Dar es
Salaam, but no firm deals were being made for import of
drummed bitumen consignments from Iran.
South Africa Bitumen availability from South African refineries was im-
28 Nov 16 06 Mar 17 29 May 17 21 Jun 17 proving as nearly all refineries were now running at normal
Copyright © 2017 Argus Media Ltd Page 8 of 16
Issue 17-033| Friday 2 June 2017 Argus Bitumen
SUB-SAHARAN A A AR N AR
ivory coast bitumen exports 2016 % ivory coast bitumen exports Jan-Jun 2017 %
Burkina Faso
14.92%
Cameroon
3.19%
Other
3.18%
Togo
13.00%
Cameroon
4.04%
Burkina Faso
1.28%
Nigeria 9.32%
Other
6.36%
Ghana
29.77%
Ghana
18.11%
Togo
60.89%
Nigeria
35.94% — GTIS
— GTIS
or near-normal levels. Only the BP/Shell refinery in Durban,
Sapref, was yet to operate at normal levels, but signs were
positive as it was restarted on 19 August. Initially, bitumen
supplies from the refinery were at minimal levels, as is usual
early in the restart process, with slow loading operations
meaning few trucks were being loaded by 20-21 August.
Loading operations were set to improve over the 22-23
August weekend, but a return to full-scale supplies and truck
shipments was likely to take until early September (see
news). The improved supply picture led to a halt in import
activity that had mainly been in the form of trucked volumes
from storage tanks in Matola, Mozambique. Bitumen demand
in South Africa is expected to rise sharply in the coming
weeks as the country enters peak demand till December.
Bitumen freight movements
Vessel name owner tonnage Loading port Discharge port current position etA
Vessel name
Owner
Tonnage
Loading port
Discharge port
Current position
ETA
Acacia Noir
Trafigura
5,895
Cadiz
New York
Med
19-May
Iver Balance
HB Tankship
6,180
Augusta
La Goulette/Rades
Med
20-May
Iver Beauty
HB Tankship
6,175
Gresik
Kemaman
Java Sea
24-May
Iver Action
HB Tankship
5,897
Antwerp
Mostaganem
Northwest Europe
28-May
Iver Agile
Petrolmar SPA
5,765
Augusta
Mersin
Med
21-May
Bitu Express
Pickett shipping corp
49,282
Tanjung Langsat
Marsaxlokk
Gulf
27-May
Nepheli
Newlead
3,416
Al Jubail
Manamah
Gulf
20-May
Katerina L
Newlead
3,500
Livorno
Lebanon
Med
29-May
Palanca Singapore
White Flag Ventures
14,911
Tanjung Langsat
Rayong
Pacific Ocean
21-May
San du Ao
Xin YuanOcean Shipping
12,780
Tarragona
Cristobal
Atlantic
22-May
Theodora
Bulgersteyn BV
6,616
La Coruna
Dagenham
Northwest Europe
20-May
Stella Wega
Ciconia
4,250
Antwerp
Hamburg
Northwest Europe
20-May
Castillo de Pambre
Ojeda Shipping
8,353
Tarragona
Laayoune
Med
19-May
Pandion
Nynas
6,319
Rotterdam
Gothenburg
Northwest Europe
21-May
Copyright © 2017 Argus Media Ltd Page 9 of 16
Issue 17-033| Friday 2 Jun 2017
Argus Bitumen
AND MIDDLE A MA MM A
singapore Singapore penetration (pen) 60/70 fob prices widened
further this week to high-sulphur fuel oil 180cst prices by
around $100/t further denting buying interest.
Singapore prices for second-half September loading car-
goes were assessed $10/t lower at $335-345/t fob. Singapore
prices dropped to a six-month low, last trading at these
levels in early March of this year.
A 4,000t cargo was concluded at $340/t fob Singapore to
Vietnam. The buyer will take the delivery of the spot cargo
towards the middle of September. Another 3,200t cargo deal
to an Indonesian buyer was concluded at around $390/t cfr
Indonesia, this netbacks to around $330-335/t fob Singapore.
Buying remains weak across the region as the fall in
crude prices and corresponding drop in the fuel oil prices
made buyers nervous. North Sea prices are trading at a
nearly eight-month low. The weakness of regional currencies
against the US dollar has also slowed down the negotiation
process. The Central bank of Vietnam devalued the Dong
earlier this week by 1pc. This is the second devaluation for
the year of the currency.
One regional producer has already started to offer lower
priced cargoes out of Singapore. The offer price to buyers
was at around $320-325/t fob, but no deals were concluded.
One Singapore based producer is expected to have lower
production of bitumen for October as well. The producer
had halved its production of bitumen for September and is
producing less in August as well.
Trade focus is also shifting more towards end-September
and early October, although buyers pointed out that they
will be in no rush to commit to October volumes.
With the decline in cargo prices, Singapore pen 60/70
and 80/100 tank truck prices were lowered by $33/t at $330-
340/t ex-refinery. Buyers did not commit to truck volumes
Singapore pen 60/70: drummed and bulk $/t
Singapore pen 60/70 drums waterborne
Asia bitumen prices
Local currency/t $/t
Low High ± Low High ± Domestic prices, fob
South Korea 844,955 876,907 +10,114 714 741 nc
Mumbai, India 30,035 32,034 -700 460 490 -18
Mumbai, India
(drums) 33,134 35,134 -700 507 538 -20
Thailand 11,719 12,252 +100 330 345 nc
Indonesia 5,950,000 5,950,000 nc 430 430 -6
Singapore 583 598 +6 415 425 nc
Singapore-Malaysia
ex-ref 464 478 -40 330 340 -32
Japan 53,000 60,000 nc 427 484 +2
Waterborne, fob
Iran 280 290 nc
Iran (drums) 345 380 nc
Bahrain 123 123 -9 325 325 -25
Singapore 471 485 -9 335 345 -10
Singapore (drums) 745 759 +7 530 540 nc
Thailand 11,187 11,542 +95 315 325 nc
South Korea 355,023 366,857 -19,150 300 310 -20
Taiwan 10,227 10,552 -174 315 325 -10
Waterborne, cfr
North China coast 2,206 2,238 -58 345 350 -15 East China coast 2,238 2,621 -38 350 410 -12 South China coast 2,270 2,557 -40 355 400 -12
Northern Vietnam (drums) 540 550 nc
Southern Vietnam (drums) 540 560 nc
Economics Mid ±
Bitumen’s value as fuel oil blendstock, Singapore 208 -25
Crude and refined products
Low High ± Dubai fob Dubai $/bl 45.33 48.50 -3.11
Basrah Light fob Basrah $/bl 44.30 47.18 -2.91
Banoco Arab Medium $/bl 43.70 46.67 -3.72
Fuel oil HS 180cst fob Singapore $/t 230.00 255.75 -22.25
Fuel oil HS 380cst fob Singapore $/t 224.25 248.50 -21.38
Gasoil 0.5% fob Singapore $/bl 54.35 57.25 -1.92
700
600
500
Singapore pen 60/70 waterborne from Singapore due to weak demand. One Singapore based
refiner is expected to revise its tank truck prices either on
22 August or early next week. A Singapore refinery had of-
fered to importers at $335/t ex-refinery.
400
300
200
28 Nov 16 06 Mar 17 29 May 17 21 Jun 17
Malaysia Paving activities had slowed down thanks to poor demand
coupled with high tank inventory.
Domestic prices had moved lower by 75 ringgit/t ($18/t)
and were in the 1,400-1,440 ringgit/t range. Domestic refin-
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Argus Bitumen
AND MIDDLE A MAR C MM AR
Bitumen freight, 15-21 Aug $/t
Singapore-east Australia
135
145
nc Singapore-west Australia 85 90 nc
Singapore-Gresik, Indonesia 40 45 nc
Singapore-south China 51 56 -0.5
Singapore-east China 61 71 -0.5
Thailand-south China 51 56 -0.5
Thailand-east China 61 71 -0.5
Thailand-east Australia 147 151 nc
Thailand-west Australia 91 96 nc
Taiwan-Ho Chi Minh, Vietnam 42 45 nc
Taiwan-Haiphong, Vietnam 38 40 nc
South Korea-east China 31 35 -0.5
South China-Haiphong, Vietnam 35 37 nc
Prices at China main refineries
Area Province Refinery Grade Contract
price Yn/t
±
Posted
price Yn/t
±
Contract
price $/t
Posted
price $/t
Northwest Xinjiang Petrochina Karamay AH-70, AH-90, AH-110, AH-130 3,150 -100 3,250 -50 493 508
AH-100, AH-140, AH-180 3,150 -100 3,250 -50 493 508
Sinopec Tahe 90-A 3,250 -50 3,300 -50 508 516
90-B 3,250 -50 3,300 -50 508 516
Shannxi Sinopec Xi’an AH-90 2,950 -50 3,100 nc 461 485
Northeast Liaoning Petrochina Liaohe AH-70, AH-90, AH-110, AH-100, AH-140 2,900 nc 3,050 nc 454 477
Panjin Northern AH-90, AH-110, AH-100, AH-140 2,900 -100 3,050 -50 454 477
North Hebei Petrochina Qinhuangdao AH-70, AH-90 2,900 nc 3,000 -50 454 469
Central Henan Sinopec Luoyang AH-90 2,950 -100 3,050 -100 461 477
East Shandong CNOOC asphalt AH-70, AH-90 2,800 -200 3,150 -100 438 493
Sinopec Qilu 70 -A 2,800 -200 2,850 -200 438 446
90 -A, 70-B 2,750 -200 2,800 -200 430 438
90-B 2,700 -200 2,750 -200 422 430
Zhejiang Sinopec Zhenhai 70-A, 90-A 2,750 nc 2,800 nc 430 438
70-B, 90-B 2,700 nc 2,750 nc 422 430
Petrochina Wenzhou AH-70, AH-90 2,650 nc 2,750 nc 415 430
Shanghai Sinopec Shanghai AH-70 2,700 -50 2,900 -100 422 454
Jiangsu CNOOC Taizhou AH-70, AH-90 2,900 -150 3,150 -100 454 493
Sinopec Jinling 70-A, 90-A 2,700 -50 2,900 -100 422 454
Petrochina Xingneng 70-A, 90-A 2,700 -100 2,800 -150 422 438
Jangyin Alpha 70-A, 90-A 2,700 -100 2,800 -150 422 438
South Guangdong Sinopec Maoming 70-A, 90-A 2,750 nc 2,900 -100 430 454
Sinopec Guangzhou 70-A, 90A 2,750 nc 2,900 -100 430 454
Petrochina Gaofu AH-70, AH-90 2,750 nc 2,900 -100 430 454
West Sichuan CNOOC Luzhou AH-70, AH-90 3,600 nc 3,650 nc 563 563
Thailand
Thai export prices were stable this week at $315-325/t fob.
The weakening of the Thai Baht did not impact the
bitumen market as improved domestic demand with more
construction tender projects for the third quarter of the
year were approved.
A domestic producer had received a bid of $300/t for
5,000t from south China buyer, but Thai refineries had no
plans to export for September as domestic demand was
expected to pick up further.
Domestic prices were stable at $330-345/t fob with lim-
ited availability for August. An upward price revision on the
domestic prices was expected for September loadings.
eries were offering cargoes at 1,400-1,440 ringgit/t. An in-
ternational trader who had imported 50,000t from Spain for
August had offered tank truck cargoes to dealers at $345/t
ex-Langsat last week, but was met with limited response. It
was unknown if any volumes had been sold this week.
Indonesia
Increased disbursement of construction funds from the Indo-
nesian government had improved domestic demand from last
week, with increased lifting from contractors. Full demand
was expected to pick up only from end of September when
more budget funds are expected to be released.
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AND MIDDLE A MA MM A
A domestic importer had purchased 3,200t for Septem-
ber at $390/t cfr Makassar from a Singapore refinery. This
netbacks to $330/t fob, taking freight of around $60/t. The
importer was looking to purchase another 5,000t from an-
other Singapore refinery with a buying price idea of $340/t
fob and another 5,000t from a Malaysian refinery, which had
offered to the importer at $320/t, with no deal concluded.
The domestic importer who had previously locked down
August term cargoes from Singapore refineries had negoti-
ated to only receive partial shipment from its purchase due
to high tank inventory at its terminals.
Another domestic importer bought 3,200t mid-end
September cargo of India origin from a Singapore trader
at $380/t cif east Indonesia. The importer is to pay a 5pc
import tax, this netbacks to around $399/t cif. With freight
estimated at $60-70/t from India to eastern Indonesia ports,
the cargo netbacks to $329-339/t fob India.
south korea Tracking the decline in the regional market, South Korea
pen grade 60/70 and 80/100 were assessed lower by $20/t at
$300-310/t fob.
A mid-sized refiner concluded the sale of its three spot
cargoes earlier this week via tender. The tender may have
concluded at around $285-288/t fob, a premium of around
$25/t to hsfo 180 on 19 August.
With the drop in domestic prices in China, importers said
that they will be able to buy South Korean cargoes at around
$310/t fob. Two mid-sized refiners are expected to issue sell
tenders next week.
Vietnam Domestic demand had not picked up from previous weeks.
The state-owned refiner bought 4,000t cargo from Singa-
Delivered cargoes: North and South China $/t
Australia import cargo prices $/t
Low High ±
Thailand fob (Class 170)
350
360
-10
Thailand fob (Class 320) 350 360 -10
Singapore fob (Class 170) 350 360 -10
Singapore fob (Class 320) 370 375 -10
pore at $340/t fob for mid-September delivery.
Other domestic importers were looking to purchase a
4,500t shared vessel of Taiwanese cargoes for second-half
September and October with buying price ideas at $370-390/
t cfr north Vietnam. This netbacks to $325-345/t fob Taiwan,
taking freight and insurance costs at $40-45/t to Ho Chi Minh
or Haiphong depending on ullage availability by then. No
deals had been concluded.
Other domestic importers buying idea hovered at $320-
330/t fob Singapore, with no deals concluded due to limited
cargo availability form Singapore. Domestic sellers were
continuing to sell bitumen below imported price for July and
August to create space in their tanks.
taiwan
Tracking the decline in regional prices, Taiwan bulk cargo
prices were down by $11/t at $315-325/t fob.
Paving activities were stable due to good weather but a
typhoon was expected to arrive this weekend. The domes-
tic producer who had sold 20,000-30,000t for its domestic
market kept its domestic prices stable at 17,500 TWD/t.
The producer was expected to have a downward revision on
its domestic price next week as there have been lesser
construction projects available. A private supplier which had
started negotiation for October cargoes had not finalized
its October volume availability. Limited ullage availability
in all Vietnam ports had resulted in some loading delays for
August cargoes.
600
550
500
450
400
350
300
North China
South China china Import cargoes to China were down by another $15/t to
$345-350/t cfr north China, down by $13/t to $350-410/t cfr
east China and down by $13 /t to $355-400/t cfr south China.
The market was lower during the week as crude and
fuel oil values continued to fall. Domestic refiners reduced
prices by 50-200 Yuan/t, as production volumes remain
high due to better margins when compared with fuel oil or
petroleum coke. Large-scale construction activities have
not fully started and consumption is still not high to balance
28 Nov 16 06 Mar 17 29 May 17 21 Jun 17 the output. The lower-than-expected consumption is partly
Copyright © 2017 Argus Media Ltd Page 12 of 16
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ASIA- A I I AND M AS MA MM A
Iranian export sales through the IME, 15-20 Aug
Grade Seller Price $/t Packing Volume t Destination
60/70
Fara Shimi Rooz
330
Bulk
5,000
Export by ship from Bandar Abbas
MTA Holding 405 Drum 6,000 Export by ship from Bandar Abbas
Ayegh Hesar Mehran 310 Bulk 200 Export by ship or truck, supply ex-Tehran
Shimi Tejarat Naghsh Jahan 308 Bulk 2,000 Export by ship or truck, supply ex-Esfahan
Kimiya Sanat Aradan 320 Bulk 300 Export by ship or truck, supply ex-Aradan
Ayegh Bam Bastan 300 Bulk 500 Export by ship or truck, supply ex-Eshtehard
Matin Saz Faal 315 Bulk 200 Export by ship or truck, supply ex-Kordestan
Bam Gostaran 309 Bulk 100 Export by ship or truck, supply ex-Oromieh
RK Refining & Energy 305 Bulk 1,000 Export by ship or truck, supply ex-Tabriz
Ayegh Esfahan 380 Bulk 3,000 Export by ship from Bandar Abbas
Azar Davam Yol 300 Bulk 1,000 Export by ship or truck, supply ex-Tabriz
Poyandegan Fan & Tejarat 272 Bulk 700 Export by ship or truck, supply ex-Esfahan
Negin Gum Pars 315 Bulk 440 Export by ship or truck, supply ex-Tabriz
85/100 Shimi Tejarat Naghsh Jahan 308 Bulk 2,000 Export by ship or truck, supply ex-Esfahan
Exchange rate 1$ = 29,860 rials
because of rainy weather in east and south China, and also
partly due to the crunched funding support from local gov-
ernment. Some projects, especially those sponsored by local
government, have been delayed for lack of funds released
by the local government. Market participants are bearish on
the price, explaining that the big price gap between fuel oil
and bitumen may push bitumen prices to go down further to
narrow the gap.
One mid-sized South Korean refiner was awarded its
September tender, to sell a total of three cargoes to Chinese
importer. The awarded price of $285-288/t fob price is lower
than recent market levels, likely to compensate for the last
expensive cargoes to the importer. The low priced tender
has further dampened buying interest.
A state-controlled refiner is believed to have sold two
September cargoes each 5,000t, one to Vietnam and one to
Indonesia. Both the cargoes are from its Maoming refinery.
The refiner has not decided the export volume for Septem-
ber cargoes from its Zhenhai refinery.
Australia
Paving activities have been slow during the winter season
with lesser purchasing ideas from domestic importers.
Domestic demand was expected to pick up from Octo-
ber which would start the new road project works. Some
US cargoes were being offered in the Australia market, no
firm deals were concluded. Buyers pointed out that the
current volatility in the Asian market is too risky to commit
to US cargoes. Buyers also pointed out that they continue
to receive competitive priced C spec cargoes from North
Asia, explaining that the premium to pen grade cargoes from
southeast Asia may start to narrow. Tracking the decline in
regional prices, Thai C 170 and C 320 prices were assessed
lower by $10/t at $350-360/t fob and Singapore C 170 was
assessed lower by $10/t at $350-360/t fob and C 320 was as-
sessed lower by $10 at $370-375/t fob.
India State-owned refiners revised the bitumen bulk and drum
prices lower by 700 rupees/t ($10/t) in the 15 August price
revision.
The next price revision is expected on 31 August of bulk
and drum cargoes. Weakening of the Indian rupee to the US
dollar will be one of the factors that is expected to impact
the price revisions.
Domestic demand in India remains weak as road projects
have seen slower progress due to the ongoing wet weather
in the country. Demand may start to pick up once weather
conditions improve. Market participants expect buying to
pick up from mid-September.
Bahrain State-owned refiner BAPCO revised the prices downward by
$25/t at $325/t fob Sitra on Thursday.
Falling bitumen cargo prices in the Mediterranean market
has kept the arbitrage open to the Gulf market.
The refiner loaded nearly 2,000t on tank trucks to Qatar
and around 9,000t vessel cargoes to the UAE, Saudi and
Qatar market.
Iran
The export market remained relatively quiet this week as
anticipation grew on the upcoming price revision by state-
owned NIOC of the vacuum bottom feedstock price.
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ASIA- A I I AND MIDDLE EAST MARkET OMM N A
Market participants are expecting the VB feedstock to be
revised downwards between $15-30/t. The downward
revision is due to the fall in crude and fuel oil prices. NIOC is
expected to announce the new price on Saturday or Sunday.
In anticipation of the downward price revision some sup-
pliers were already offering drum and bulk cargoes lower by
$10-15/t fob, but no deals were concluded. Buyers preferred
to wait and not commit to any cargoes this week.
The rial continued to remain weak against the US dollar
and was trading in the 33,450-33,650/$1 range.
Fewer deals were concluded on the Iran Mercantile
Exchange (IME). Jey Oil and Pasargad Oil did not supply any
cargoes on the IME.
Trading activities were limited and cargoes were moved
to Vietnam, Indonesia, Bangladesh, Myanmar and Sudan.
Bulk demand was weak in the UAE and Oman due to warm
weather. A small 500mt packed bitumen deal for India was
concluded at $345/t fob Bandar Abbas.
Bulk cargos were steady at $279-290/t fob Bandar Abbas
by some producers and traders this week. A 1,200t of pen
60/7 was concluded at $284/t fob Bandar Abbas and another
1,000t bulk cargo was sold at $285/t fob Bandar Abbas to the
UAE.
Another 1,000t bulk cargo was settled on local currency
basis at 9,450,000 rials/t fob Bandar Abbas (about $284/t fob
Bandar Abbas based on free market exchange rate).
Drums cargoes were flat at $340-360/t fob Bandar Abbas
for cash payments and at $365-380/t fob Bandar Abbas for
credit payments this week. Some producers and traders
offered their cargoes at 11,200,000-11,700,000/t fob Bandar
Abbas (about $339-355/t fob Bandar Abbas based on a free
market exchange rate). IME costs include of brokerage fee is
$1.06/t.
Iran local market
Vacuum bottom feedstock prices were steady this week,
although demand was low and limited VB cargoes were sold.
Domestic buying interest was weak due to warm weather
and producers sold 31,985t in the domestic market.
Jey Oil kept prices stable and they sold 13,506t of pen
60/70 and 85/100 at 9,080 rials/kg ex-Esfahan this week.
Pasargad Oil prices were also firm this week, they settled
8,319t of pen 60/70 and 85/100 at 9,680 rials/kg ex-Tehran
and 2,414t of pen 60/70 at 10,070 rials/kg ex-Shiraz. Another
1,953t of pen 60/70 and 85/100 was sold at 9,080 rials/kg
ex- Arak. It sold cargoes from its Tabriz, Tehran and Bandar
Abbas plants as well.
Iranian Vacuum Bottom prices from NIOC*
Refinery Volume t Rials/kg $/t
Low High Low High Bandar Abbas 1,900 7,913 7,913 236 236
Esfahan 3,720 7,536 7,536 225 225
Shiraz 1,000 7,913 7,913 236 236
Tehran 9,730 7,536 7,588 225 226
Tabriz 2,350 7,536 7,536 225 225
Arak
* Exclusive of the 9pc tax for domestic sales and 14pc duty for export sales
Iranian domestic sales through the IME
Grade Volume t Price rials/kg 60/70 26,759 9,080-10,070
85/100 5,226 9,070-9,534
40/50 3,596 9,769
MC-250 1,812 13,294-14,180
Emulsion Rapid 50 7,866
Emulsion Slow no supply
Exchange rate 1$ = 29,860 rials
Jey Oil $/t
Total purchased quantity up to 2000t up to 4000t 2.00
4200t up to 7000t 3.50
7300t up to 10,000 5.00
10,500t and above 7.00
Jey Oil discount $/t
Total purchase and 100pc advance payment 2,000 up to 5,000t 5.00
5200t and above 7.00
Jey Oil $/t
Total purchase and loaded quantity 15,200t up to 30,000t 2.00
30,500t up to 60,000t 3.50
61,000t up to 100,000 5.00
102,000t and above 7.00
Pasargad Oil discount $/t
Discount, cash payment and loading within 45 days 0 up to 2000t 4.00
2,000t up to 5,000t 6.00
5,000t and above 8.00
Pasargad Oil discount $/t
In case of withdrawal 5 May 35,000t and above 4.00
Copyright © 2017 Argus Media Ltd Page 14 of 16
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N
Sapref Durban refinery restarts after delays The 180,000 b/d Sapref refinery in Durban, operated jointly
by Shell and BP, restarted 19 August after extended delays
that followed a scheduled maintenance shutdown.
Loadings of bitumen from the refinery are still slow, but
they are expected to be ramped up over the coming week-
end. The return to full-scale refinery and loading operations
after full shutdowns at Sapref usually takes up to two weeks.
The refinery was fully shut for scheduled maintenance
work that was to have lasted from 20 April to 30 June, but
the restart has been plagued by repeated technical hitches
and delays, helping — along with other refinery problems
and shutdowns in South Africa — to dramatically tighten
domestic bitumen supplies.
No sign of restart at Morocco refinery
There is no sign of a restart at the 220,000 b/d Mohammedia
refinery in Morocco despite the delivery of a 1mn bl crude
cargo in the week starting 17 August and another 1mn bl
cargo sitting offshore.
Refinery operator Samir, which is majority owned by
Saudi Arabian private sector company Corral, has not
updated the Casablanca stock exchange since the delivery.
Trading in its shares was suspended on 6 August, and the
firm said refining operations had stopped because ―the sup-
ply of crude oil to the refinery has been delayed due to the
international market situation and the company's financial
difficulties‖. The company owes over $1bn to the Moroccan
government in taxes.
Repeated attempts by Argus to contact the company for
comment have been unsuccessful. Shipping market partici-
pants also say they have been unable to reach the firm.
The STI Spiga left Mohammedia on 17 August, after
discharging crude, while the Delta Tolmi is moored offshore.
But product traders do not expect the refinery to restart
until at least October, pointing to the financial straits Samir
finds itself in. This timeline would tally with a schedule for
refinancing discussions. On 11 August, Samir said it would
adopt a financing plan drawn up by the Attijari Bank and in-
crease the company's capitalisation. But the board is not due
to meet until 8 September to convene a shareholder meeting
on 12 October.
The financial problems at Samir do not come out of the
blue. Last December, it issued a profits warning follow-
ing the collapse in crude prices. The refiner is obliged to
maintain a strategic stock of 4mn bl of crude, in addition to
operating stocks. It said the fall in the value of this inven-
tory since July meant it would make a loss in 2014. That loss
amounted to 3.4bn dirhams ($350mn). Earlier this year, the
refiner restructured its debt with a Moroccan bank, and an-
nounced loans from an arm of the Islamic Development Bank
and US finance group Carlyle.
The Mohammedia refinery — the only one in Morocco —
primarily supplies the domestic products and LPG markets,
but around 25pc of its output is exported. It produces over
7,000 b/d of bitumen, some of which is exported.
Shell's Godorf refinery to undergo maintenance
Shell will halt production of motor fuels and heating oil at
its 170,000 b/d Godorf refinery in the west of Germany in
September because of maintenance work.
It is unclear which units will undergo maintenance, or
how long the stoppage will last. The last planned shutdown
of the Godorf refinery was in September 2014.
Godorf refinery is part of Shell's Rheinland Refinery
complex that also includes the 140,000 b/d Wesseling refin-
ery. There is no stop of production planned for Wesseling in
September.
Total plans Antwerp maintenance in October
Total is planning to shut down a desulphurisation unit and
a reformer throughout October at its 308,000 b/d Antwerp
refinery in Belgium.
The desulphurisation unit is used to reduce sulphur
content in gasoil. The shutdown of the reformer will lead to
higher straight-run naphtha output from the plant.
The refinery had a full turnaround shutdown in 2013.
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Copyright © 2017 Argus Media Ltd Page 15 of 16
Issue 17-033| Friday 2 Jun 2017
Argus Bitumen
N S
Norway’s oil product sales down in July Norway’s
oil product sales fell by 2.4pc in July compared with a year
earlier, as deliveries of gasoline and middle dis- tillates
more than offset rises in diesel used for motor fuel.
Bitumen imports rose 40pc year on year to 47,458t in
June, reflecting a rising trend seen this year.
Total product sales in July were 147,000 b/d, according
to preliminary data released by Statistics Norway (SSB).
Norway bitumen imports t
January
11,274
February 3,807
March 7,299
April 25,686
May 59,276
June 74,193
July 47,458
Source: Statistics Norway (SSB)
Hellenic plans short Thessaloniki shutdown
Hellenic Petroleum will shut its 83,000 b/d Thessaloniki
refinery for a turnaround during September.
No further details were provided by the company for a
turnaround that is expected to last for a few days during the
first half of the month and is not expected to affect supplies
of oil products from the refinery.
Data revision boosts Spanish asphalt demand
A second data revision in as many months by the Spanish
strategic reserve Cores has boosted demand for asphalt
products versus the corresponding periods in 2014.
The reserve upwardly revised 2015 demand, after having
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previously revised down consumption data for 2014.
Spain consumed 97,266 tonnes of asphalt products in
June said Cores, up by 8pc compared with a year earlier.
Over the first six months of the year Spain has seen 477,285t
of demand, up by 33pc compared with the first half of 2014.
Cores defines bitumen and asphalt products as "bitumen,
asphalt, petroleum bitumen and any other secondary prod-
ucts".
Cores has upwardly revised its data for the first five
months in 2015. Previously it had said Spanish demand for
asphalt products in the January to May period stood at
304,499t, but this has now increased to 380,019t. The re-
serve also revised its data for 2014 downwards in July. It said
demand for 2014 was 885,205t, down from a level of 1.3mn t
given previously. The years before 2014 remain unchanged.
The new figures mean 2014 was the lowest level of asphalt
product demand on record and the only year with less than
1mn t of demand since Cores' records began in 1997.
The reserve publishes demand and distribution data,
which it receives from the member companies that pay its
costs. In 2014 that was integrated firm Repsol, which pays
32pc of Cores' fees, followed by refiner Cepsa, which pays
22pc, and BP, Spain's Galp and retailer Disa, which pay 10pc,
9pc and 7pc, respectively. Another 20pc of Cores' revenues
is made up of smaller firms.
Despite the upwards revision to 2015 data, it is still the
second lowest level of consumption for the period on record.
In the first six months of 2013 Spain consumed 618,924t.
In 2008 — before the onset of Spain's financial crisis — the
country saw 1.1mn t of demand, underlying the fragile state
of any economic recovery in the country.
Construction activity figures from the EU's statistics
service Eurostat — which include all building projects in the
country — show a small increase in June of 0.6pc compared
with the same month a year earlier. But provisional data on
civil engineering activity — road, rail and other large scale
state works — shows an increase of 2.9pc compared with
June 2014. This means Spanish civil engineering activity has
now grown in each month since September.
Petronas profit hit by falling prices, lower sales
Profit at Malaysia’s state-owned oil firm Petronas fell sharply
in the second quarter because of lower oil prices and a
decline in crude and LNG sales.
Petronas made a profit of 11.1bn ringgit ($2.7bn) during
April-June, down by 47.4pc from 21.1bn ringgit a year earlier.
Profit in the first half of 2015 fell by 43.5pc to 22.5bn ringgit.
The firm produced 2.28mn b/d of oil equivalent (boe/d)
Issue 17-033| Friday 2 Jun 2017
Argus Bitumen
N S
in the second quarter, up by 3.2pc from 2.21mn boe/d a year
earlier, supported by higher crude and condensate output in
Malaysia, Iraq and Azerbaijan.
Output on an entitlement basis edged down to 1.56mn
boe/d from 1.59mn boe/d over the period. But sales fell,
with crude sales dropping by 2pc from a year earlier to
580,000 b/d and oil product sales dipping by 6pc to 780,000
b/d on lower trading and marketing volumes respectively.
The firm’s capital investment totalled 19.8bn ringgit in
the quarter, up by 48pc from the same period last year, fol-
lowing its October purchase of a 15.5pc stake in the BP-led
Shakh Deniz gas and condensate field in the Azeri sector
of the Caspian Sea from Norway’s state-controlled oil firm
Statoil for $2.25bn. Domestic spending on the $27bn Rapid
refinery and petrochemical project in southern Malaysia and
an expansion at Bintulu LNG also contributed to quarterly
investment.
Crude prices will remain under pressure because of
modest global oil demand growth and abundant Opec and
non-Opec supply, Petronas said. It warned its full-year per-
formance is likely to be hit by prolonged lower oil prices and
modest global economic growth.
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Argus Bitumen Methodology Argus uses a precise and transpar- ent methodology to assess prices in all the markets it covers. The latest version of the Argus Bitumen mthodology can be found at: www.argusmedia.com/methodology For a hard copy, please email [email protected], but please note that methodologies are updated frequently and for the latest version, you should visit the internet site.
arGUs BIOFUeLs
Contents:
Methodology overview 2
Price assessments — introduction 6
Spot prices 6
Reference prices 8
Spot ethanol price assessments 8
Forward price assessments and swaps 9
Last Updated: janUary 2015
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