Energy & Petroleum Products
Bitumen
Bitumen is traded by penetration grade and application, primarily for road construction and infrastructure.
MARKET REFERENCES
How the market commonly references price
There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.
- Argus FOB Singapore bitumen
- FOB South Korea bitumen
- Regional CFR / delivered bitumen assessments
TYPICAL COMMERCIAL STRUCTURE
How physical pricing is often built
Spot cargoes are commonly quoted outright in $/mt. Commercial discussions also consider movements in high-sulphur fuel oil and Brent; some contracts therefore use a reference fuel-oil/crude relationship plus a negotiated differential.
PRICE DRIVERS
What moves the physical differential?
- Penetration grade
- Refinery availability
- Road-construction season
- Heating and storage
- Freight / parcel size
PHYSICAL TRADE
Commercial considerations
Typical grades include 60/70 and 80/100. FOB Singapore, FOB South Korea and destination CFR markets are common Asia references.
The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.
Market methodology reference: view source / methodology
PHYSICAL COMMODITY BROKERAGE
Discuss a Bitumen requirement.
Share the specification, quantity, origin or destination, delivery basis and timing.