Platts Asia bitumen MOC assessment process sees first trade since Nov 1 launch

Platts Asia bitumen Market on Close assessment process recorded its first trade on Nov. 19, since it launched on Nov. 1 FOB Singapore Bitumen PEN 60-70 and FOB South Korea Bitumen PEN 60-80 assessments.

During the MOC process, Hiin Asia Pacific sold 4,000 mt of PEN 60-70 grade bitumen for Dec. 14-18 loading on an FOB Straits basis to Puma Energy Supply & Trading at $440/mt.

Puma Energy did not bid on after the trade, while Hiin Asia Pacific also withdrew its offer, which was for a similar volume of product for Dec. 6-10 loading on an FOB Straits basis at $444/mt.

FOB Singapore Bitumen PEN 60-70 assessment reflected the trade, as it was assessed at $440/mt on Nov. 19, unchanged on the day. The cash differential for FOB Singapore Bitumen PEN 60-70 over the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments fell $15.26/mt day on day, and in the process, flipping into a discount of minus $11.24/mt, the lowest that the grade has been assessed at since its Nov. 1 launch.

Singapore is a major bitumen trading hub with supplies to most Southeast Asian countries like Malaysia, Indonesia, Thailand, Philippines, Myanmar and Vietnam. Singapore is also a major supplier of bitumen to Australia.

Demand for bitumen is expected to remain firm from major buyers within Southeast Asia over the rest of the year and for most part of Q1 2022. Demand from China however, may inch lower as a severe weather condition during the winter could likely slow down construction work, market sources said.