Argus Asphalt Report...2013/05/17 · • Lebanon’s bitumen consumption is expected to fall to...
Transcript of Argus Asphalt Report...2013/05/17 · • Lebanon’s bitumen consumption is expected to fall to...
Weekly International Pricing and Analysis
Argus Asphalt Report
Copyright © 2013 Argus Media LtdPage 1 of 21
Asphalt prices at key locations 13-17 May
US (rack prices, fob) $/st Low High Change
Northern New Jersey/New York City Metro 500 540
Coastal Texas 550 560
Northern Illinois/eastern Iowa 530 550 3
Southern California 530 540
Western Washington/Oregon 525 530 -5
US (waterborne, fob) $/st
East Gulf coast (barge fob) 460 470 -3
West Gulf coast (barge fob) 455 460
Midwest (barge fob) 410 420
Canada (rack prices, fob)
Quebec 611 617 -9
Ontario 602 615 -9
Europe (rack prices, fob)
Rotterdam 578 591 -10
Southwest Spain 597 623 -11
Other international (rack prices, fob)
South Africa 670 690 -20
Singapore 625 630
Other international (waterborne, fob) $/t
Iran (cargo fob) 490 500 -5
Singapore (cargo fob) 605 612 -3
Taiwan (cargo fob) 600 608 -2
South China (ex-Singapore cfr) 617 658 -4
Note: st - short ton, t - metric tonne.
5M-20 17 May 2013
Summary
• WholesaleactivityinUSasphaltmarketswaslimitedduringmid-month.Retailmarketsremainslowtoopenup,backingupwhole-saledemand.Withthelatestarttotheseason,manyareexpectingUSvolumestobeofffromthe2012demandfigureof22.2mnshorttons.
• IntheUSMidwest,withalatestartandashortfinishexpectedthispavingseason,anunpredictablesummersupplysituationcouldemerge.Newcokingunitsexpectedtocomeonlinethisyearcouldshiftsupply-demanddynamicscausingtemporaryshort-fallsinsup-ply.
• USRockiesmarketsinchedupforwholesaledeals.Somerefin-ershaveachieveddealsat$400/stfobrailforthemonthofMayandarepushinghigherforJune.IntheGulfcoast,valuesfell,pressuredbydiminishedexportdemandandweakeningalternativemarkets.
• NorthwestEuropeanbitumendemandslowedafterabusymid-ApriltoearlyMayperiodofconstructionandproductfill-uprequire-ments.ShippingsourcesindicatedthatcargoflowshadslowedinthemiddleweekofMay,althoughtankersarestillfullyemployedonalreadyagreedbusinessthroughtoearlyJune.
• Lebanon’sbitumenconsumptionisexpectedtofallto40,000-50,000tthisyear,thelowestlevelforseveralyearsanddownmas-sivelyfrom75,000tin2012.
• WhileSouthAfricanbitumendemandisstartingtotaperoffwiththeapproachofwinter,aprolongedandextensiveseasonofrefinery
ContentsSummary 1
Global bitumen wholesale prices 2
US and Canada 3-9
East coast commentary 3
Gulf coast commentary 4
Midwest commentary 5
Rocky Mountain and west coast commentary 6
Canada commentary 7
Europe and Africa bitumen commentary 10
Asia and Middle East bitumen commentary 15
Crude oil 20
Oil industry briefs 20
Argus Media contact information 21argusmedia.com/euro-bitumen
Argus Europe/Africa Bitumen 2013 12-13 June | Cannes, France
Muliti-booking discounts now available!
5M-20 17 May 2013
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Argus Asphalt Report
maintenanceinSouthAfricahasreduceddomesticsupply.This,coupledwitharebateonimportdutieswhichcameintoeffectinMarch,hasseenariseinimportsofdrummedmaterial.
• NegotiationswerecontinuingregardingtheawardoftheTunisianimporttenderfor60,000tofPen30/50fordeliveryintotheportsofRadesandGabesfromMay2013throughtoApril2014.Aseparatetenderwasreportedtohavebeenissuedfortheimportof12,000tofbitumen–mostlikelyinthree4,000tcargoes–intotheTunisianportofSfax.
• Singapore’sbulkpricesinchedlowerby$3/tto$605-612/tfob,assellerscutpricestofindhomesfortheirJune-loadingcargoes.ButSingaporecargoeswerestilldeemedtobeuncompetitiveintoVietnamorsouthChinawithcheaper-pricedalternativesfromSouthKorea,China,ThailandandTaiwan.
• Singaporeex-tanktruckpricesweredownslightlyto$590-600/tthisweek.OneSingaporerefinermovedasignificantnumberoftanktrucksintoMalaysiathisweekataround$600/t.Theincreasein
tanktruckdeliveriespromptedMalaysiandealersandthecountry’sstate-controlledrefinertocutpricesaswell.
• WeakbuyinginterestfromsouthChina,VietnamandAustraliameantthatThairefinersstruggledtofindoutletsfortheirJunecargoes.TankswerealmostfullinNorthVietnambutimporterswereseekingsmallvolumesinJunefortheirterminalsinthesouth.
• SpotpricesinSouthKoreaeasedby$2/tto$578-583/tfobthisweek.VerylittlespotdemandwasheardalthoughAustralianbuyerswillcontinuetoreceivetheirtermcommitmentsfromThailandandSingapore.
• ImportpricesintoChinaarestableat$613-620/tcfrinnorthernChinabutdownby$6/tto$615-663/tcfrineasternChinaanddownby$4/ttoat$617-658/tcfrinsouthChina.
• Indiahasraisedthecountry’sbitumenrackpriceby180rupees/t($3.2/t),effective15May.
Argus Market Map: Global wholesale bitumen prices, fob basis $/t
New Jersey
$513/t
West Gulf coast
$504/t
Bahrain
$550/t
Note: Med and NWE HSFO prices on 16-May were used to calculate Europe and Africa wholesale bitumen prices.
East Gulf coast
$513/t
Greece
$535/t
Ivory Coast
$638/t
Iran
$495/t
Italy
$503/t
Japan
$566/t
Netherlands
$558/t
Singapore
$609/t
South Korea
$581/t
Spain
$520/t
Taiwan
$604/t
Thailand
$603/t
5M-20 17 May 2013
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US and CanadaEast coast
• Eastcoastmarketscontinuedslowlyduringtheweek.Goodpav-ingconditionshavenotbeenabletoinducemoretrafficatthetruckrack,stallingmarketsandkeepingthespreadbetweenwholesaleandretailpricingtight.
• Wholesalebargepricesareflatat$460-470/stfobNewJersey,wherepricehaverestedforthelastfewweeks.Midwestrailoptionsarepricedbetween$420-460/stex-refinery,withdecentdemandforthelowerpricedtonnage.Midwestrail,soldatabout$420/stwasquotedlandingontheEastcoastbetween$460-480/st,dependingondeliverypoint.
• Somenewbargetrafficwasspottedduringtheweek.TheAsphaltEagleismooredinBoston,afterarriving16MayfromtheBaltimorearea.Bargesaleshavebeenthin,ascontractorsawaitbetterdemandbeforepurchasingmoreinventories.
• IntheBostonarea,PG64-28supplyismarkedflatat$620/st.ThestartofanewfiscalyearforthestateofMassachusettsoverthesummerisexpectedtoincreasevolumes.InwesternMassachusetts,PG64-22ispricedbetween$540-550/st,butthosemarketsareunderincreasingpressurefromNewYorksupply.
• Albanyarearacksarepostedbetween$535-545/st,flatoverthespring.Betterweatherisimprovingvolumesattherack,butthrough-putsareexpectedtobeofffromlastyear,distributorsintheareasay.RackpricesinwesternNewYorkdroppedfromahighpriceof$535/stto$525/st.
• Mid-Atlanticpriceswereflatduringtheweek.RetailpricesinsouthernNewJerseyandBaltimorecameupslightlyduringthemonth,buttonnageisstillbeingreportedat$500-510/stfobBalti-morecomparedwithpostedpricesintheareaupto$540/st.SomeofthecheaperBaltimoresupplyisalsomovingsouthintoVirginia,pressuringpricesthereaswell.
• CoastalCarolinasmarketswereflatat$520-550/st.Farthersouth,Georgiamarketsareflattoo,withAtlanta-areaPG67-22stillpricedat$530-550/st.Betterweatherhasboostedpavingdemand,anddistributorsreportincreasedactivity.
• InFlorida,Tampa-areapriceswereat$515/st,whilesouthernFloridapriceswereholdingat$530/st.
East coast asphalt prices $/stRack prices, fob (13-17 May) Low High Change
Maine 560 620*
MA/NH 550 620*
Connecticut 540 560
Eastern and central NY 525 535 8
Western NY/Western PA 510 520 -8
Northern NJ/NY C Metro 500 540
Delaware/SE PA/south NJ 500 535 3
Maryland/northern Virginia 500 540
Central and lower Virginia 525 540
Coastal Carolinas 520 550
Inland Carolinas 515 550
Inland Georgia 530 550
Coastal Georgia/northeast Florida 540 560
West coast of Florida 515 545
Southern Florida 530 545
Waterborne prices
New Jersey barge fob 460 470
N New Jersey/New York City Metro cif cargoes 465 480
New England cif cargoes 515 530*
Product prices16-May Change
Heating oil ¢/USG 269.37 -5.54
3% HSFO $/bl 91.20 -1.50
Note: Asphaltic crude breakeven economics are for a topping refinery and repre-sent incremental barrels. * Represents PG 64-28; NA = not applicable
Economics
Asphaltic crude breakeven $/stMaya 602.77 2.89
Arab Heavy 610.51 0.26
Asphalt’s HSFO alternativeEast coast 475.62 -7.08
Asphalt’s HSFO alternative arbitrageEconomics to US east coast
From US Gulf coast -29.64 6.83
From the Med -91.40 3.40
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300
400
500
600
700
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
New Jersey barge Maya breakeven
New Jersey barge fob vs Maya breakeven $/st
5M-20 17 May 2013
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Gulf coast
• Gulfcoastasphaltmarketsfellslightlyduringtheweekforwhole-salevalues.RetailmarketsineasternandwesternGulfcoastregionsstilllackmomentumandpricesareflat.
• Onenewcargoof30,000-34,000blofAC-20wasbookedforexportat$470/stfobbargeeasternGulfcoast,downfromlastweek’shigherpricesof$475/sttoadomesticcustomer,butthesalesuggestssomestrengthatlevelsabove$460/st–lastweek’slow.
• WesternGulfcoastmarketsareweaker,astalkscontinueforMaybarrelsat$455-460/stfobbarge.SomepricingdiscussionshavecommencedforJuneaswell,withinthesamerange.
• ExportdemandfromLatinAmericahasfallenoffsincetheendofApril,assomecountriesbreakforrainyseasons.ButtheappetiteforasphaltoverallisfallingoffforsomekeyexportoutletsforUSsupply.
• Somenewbargeactivitywasspottedintheweek.TheIverAs-phaltdeliveredtonnagePortMoin,CostaRicafromMobile,landing16May.CompetitionwithVenezuelacontinuesforseabornemarkets–theAsphaltTransporterisdeliveringacargotoHonolulufromVenezuela.
• Inretailmarkets,pricesstayedflat.FormuchoftheGulfcoastre-gion,springandearlysummerhaveyettodeliveranyincreasedactivity.
• InAlabama,inlandPG64-22supplyispostedat$555/st,flatontheweek,whiletothesouth,pricesareat$545/st.MississippipostedpricesforPG67-22are$560/stacrossthestate.ActivityinMississippihasbeenslowsinceheavyrainslastweek,andmomen-tumhasyettoreturn.
• TexasrackpriceshavebeenflatallyearforPG64-22at$550-560/stalongthecoastand$550/stinland.
• WesternGulfcoastasphalt’salternativevaluetocokehasfallenoff,withvaluesnearlyinlinewithwholesaleasphalt,accordingtolocalrefiners.
Gulf coast asphalt prices $/stRack prices, fob (13-17 May) Low High ChangeAlabama (southern) 545 565 -10
Alabama (inland) 555 565 -5
Louisiana/Mississippi (southern) 544 560 -8
Louisiana/Mississippi (inland) 560 560 -15
Arkansas/northeast Texas 580 600
Texas (coastal) 550 560
Texas (inland) 550 550
New Mexico 570 575
Waterborne fobEast Gulf coast 460 470 -3
West Gulf coast 455 460
Note: Asphaltic crude breakeven economics are for a topping refinery and repre-sent incremental barrels.
Product prices 16-May ChangeHeating oil ¢/USG 271.87 -5.92
3% HSFO $/bl 90.95 -1.50
EconomicsAsphaltic crude breakeven $/stMaya 576.97 3.86
Arab Heavy 611.52 0.43
Asphalt’s HSFO alternative $/stGulf coast 472.14 -6.83
General refining economicsFob US Gulf coast ($/bl)3-2-1 crackspread 23.34 1.32
2-1-1 crackspread 22.26 0.67
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300
400
500
600
700
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
East Gulf coast barge Maya breakeven
East Gulf coast barge vs Maya breakeven $/st
hhh
550
560
570
580
590
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Inland Alabama Southern Alabama
Inland Alabama vs southern Alabama $/st
hhh
450
475
500
525
550
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
East Gulf coast barges HSFO alternative
East Gulf coast barge vs Asphalt's HSFO alternative $/st
5M-20 17 May 2013
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Midwest asphalt prices $/stRack prices, fob (13-17 May) Low High Change
West Oklahoma/Texas Panhandle 540 550
NE Oklahoma/Kansas/southwest Missouri 530 555
North Illinois/eastern Iowa (Chicago) 530 550 3
South Illinois/eastern Missouri (St Louis) 500 550
Western Iowa/Nebraska 575 595
North Dakota/south Dakota 550 595 -13
Northern Minnesota/northern Wisconsin 535 550 -10
Southern Minnesota/southern Wisconsin 490 545 15
Northeast Indiana/north Ohio/Michigan 525 575
South Ohio/south Indiana/north Kentucky 540 545
South Kentucky/Tennessee 545 565
Waterborne fob
Midwest asphalt barge 410 420
Midwest roofing flux barge 510 540
Midwest
• Midwestmarketswereflat.Pricesonthewholesaleandretailsidearecaughtinmid-monthdoldrums,andweakdemandismatchedbylimitedsupplyfromrefineryturnarounds.
• Wholesalerailquoteswereflatontheweekat$420-440/st,withnosuppliersadjustingprices.Rivertrafficisscant,especiallywitharbitragewindowstoUSGulfcoastmarketsclosed,andpricesremainflatat$410-420/stfobbarge.SomeCanadiandemandcouldbeemergingforGreatLakesbargesatpricesinthesamerange.
• Withalatestartandashortfinishexpectedthispavingseason,marketsareexpectingavolatilesummer.Newcokingunitsexpectedtocomeonlineinthesummercouldshiftsupply-demanddynamicsandleavesomecontractorsshortofmaterial,oratleastshoppingforanewsupplier.
• Rackswereunchangedduringtheweekformostlocations.Manyareexpectingvolumestobeoffoflastyear’sthroughputs,asdemandremainsstubborn,andweatherstillhinderssomeregions.
• TheMichiganpricerangewidened.SupplyforPG64-22wasquotedbetween$520-545inthesouthernpartofthestateandupto$565/st(andsomelimitedamountsof$575/st)reportedinthenorthernpartofthestate.PG58-28retainsits$30/stpremiumoverPG64-22.
• NorthernOhioPG64-22wasreportedat$535/st,downfrompostednumbersashighas$565/st.
• InChicagomarkets,pricesforPG64-22movedupslightlyto$545-550/stfrom$530-545/stnitheweekprior.NorthernIndianapricesstayedflatat$545/st.
• MinnesotaandWisconsinretailmarketsremainquiet.Pavingconditionsarestilldifficultandlimitedproductismoving.Retailton-nagewasquotedinthemid-$500/stacrossnorthernWisconsinandMinnesota.SouthernWisconsinpriceswereslightlycheaper,withtonnagebeingmarkedat$545/st.
• TheDakota’spricesalsofell.Activityissimilarlythin,andpricesforretailwerequotedatmid-$500/st.
hhh
500
525
550
575
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Chicago St LouisOhio/Michigan
Chicago - St Louis - Ohio/Michigan $/st
hhh
540
550
560
570
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
N Ohio/S Indiana/N Kentucky S Kentucky/Tennesse
North OH - South IN - North KY vs South KY - TN $/st
hhh
350
400
450
500
550
600
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Midwest roofing flux barge Midwest asphalt barge
Midwest roofing flux barge vs Midwest asphalt barge $/st
5M-20 17 May 2013
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Rocky Mountain and west coast
• Rockieswholesalemarketsweremixed.SomehigherwholesalenumberswerereportedforMaydeliveriesasrefinerspushsummerpriceshigher,butretailactivityremainsmiredinalull.LowerrackpricescontinueforRockiesandWestcoastmarkets.
• Wholesalerailpurchaseswerereportedat$400/tex-refinery,up$5/tfromapreviousrangeof$385-395/tsincetheendofApril.SomenascentconversationsforJunearebeginning.Purchasingremainscontainedtosmalllotstotopupliftedinventories,andnegotiationsoverpriceunderlielingeringresistancetothe$400/tmark.
• RackmarketswereflatordownintheRockiesandWestCoast.Demandremainsmutedandcompetitionhighinmanymarkets.
• LettingswerequietinthestateofMontana,duringtheweek.Pricesstayedflatat$515-525/stforPG64-22.Decentweatherhasboostedvolumesatsometruckracks,movingsupplyouttohighwayprojectsalreadyunderway.
• InDenver,cheapsupplyofPG64-22remainsprevalent.Somewholesaleofferingsarestillinthemarketat$450/st,withtherackspostedat$515/stforMay.Effortstoincreasethewholesalepricecouldbringsomeconvergencewiththeracknumbers.
• Arizonapriceswerestableat$510-515/stforPG64-22.Someweaknesspervades,asquotesonsupplyatsub-$500’s/starestillreported.MarketoutlookforthePhoenixregionisforpricestoremainflat,orslightlydownforMayandJune.
• SouthernCaliforniamarketsremainweak.MarketpricesforPG64-10and64-16stayedbetween$530-540/st.TheendofthefiscalyearfortheCaliforniaDepartmentofTransportationhasslowedworkoverthemonthofJune.Holidaysattheendofthemonthareexpectedslowbusinessevenmore,butJulycouldbringheaviervolumes.
• InthePacificNorthwest,marketpriceswereflat,havingsof-tenedoverthespring.SupplyofPG64-22issellingfor$530/stinOregon.Thestate’sbidseasonhasmostlyclosedfortheyear,thoughmoreworkwillcontinuetobereleased.Washingtonmar-ketsaresofterthanOregon,at$525/st,weakenedbycompetitionandlimiteddemand.
Rocky Mountain asphalt prices $/stRack prices, fob (13-17 May) Low High Change
Montana 515 525
Wyoming 515 525
Colorado 500 515 -3
Utah 500 550
Idaho/east Washington 570 600
Wholesale prices
Rocky Mountain (rail) fob 385 400 3
Product prices (Los Angeles) 16-May Change
EPA diesel oil ¢/USG 284.87 -6.04
HSFO 380cst $/bl 99.21
Asphalt’s HSFO alternative $/stWest coast 522.85 518.79
West coast asphalt prices $/stRack prices, fob (13-17 May) Low High Change
Western Washington/Oregon 525 530 -5
Northern California 580 600
Central California 550 560
Southern California 530 540
Arizona 510 515
Nevada 520 530
Roofing flux rack prices
Southern California 610 630
hhh
505
510
515
520
525
530
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Montana Colorado
Rocky mountain rack prices $/st
hhh
500
550
600
650
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Arizona South Californiawest Washington/Oregon
Arizona - southern California - west Washington/Oregon $/st
5M-20 17 May 2013
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Argus Asphalt Report
Canada
• Canadianasphaltmarketswereflatduringtheweek.Easternprovincesarestartingtoseevolumeimprovements,thoughoverall2013marketsarestillexpectedtobedowncomparedwithlastyear.Pricesareexpectedtobestablethroughmid-May.
• TheMontrealdepartmentoftransportationissuedtendersthisweekforPG58-34and64-34overtheweek.ForPG58-34,thelowofferfromsupplierswasC$782.50/t,andthehighofferwasC$835/t.ForPG64-34thelowestofferwasC$862.50/tandthehighestofferwasC$895/t.
• PostedpricesforPG58-28inQuebecwereflatintheweek,pricedbetweenC$685-695/t.Lastweek,springweightrestrictionsontruckswereliftedandgoodweatherboostedvolumes,butthe
marketoutlookisstillcallingforaslowyear.Volumescouldbeoffbyasmuchas20pccomparedwith2012,accordingtosomedistribu-tors.
• OntariopriceswereflatduringtheweekforPG58-28.PriceshavebeenflatoverthespringonlimitedactivityatC$675-690/t.
• InwesternCanada,wholesalerailpriceshavebeenflatsincethebeginningofMayatUS$380-390/stfobrefinery.
• Manitobamarketsarestillquiet.Thepavingbudgetfortheprov-inceremainsuncertainuntilfloodrepaireffortsarecompleted.
• Lastweek,onerefinerincreasedrack(postedspot)pricesin
Eastern Canada posted prices for asphaltCompany (location) Asphalt grade Posted prices (C$/t) Differentials Effective dateKildair (Sorel-Tracy, Quebec) PG 58-28 712 19 Apr
PG 64-28 762 50 19 Apr
PG 58-34 polymer 802 90 19 Apr
PG 64-34 polymer 852 140 19 Apr
PG 70-28 polymer 852 140 19 Apr
Suncor Energy Inc. (Montreal, Quebec) PG 58-28 695 09 May
PG 64-28 - - 09 May
PG 58-34 polymer - - 09 May
PG 64-34 polymer - - -
Note: st - short ton, t - metric. *BUR = Built-up roofing.
Eastern Canada asphalt pricesRack prices, fob (13-17 May) C$/t $/st
Low High Change Low High Change
Quebec 685 692 611 617 -9
Ontario 675 690 602 615 -9
Roofing BUR* liquid prices
Ontario 800 820 714 731 -11
Western Canada asphalt pricesRetail prices, fob (13-17 May) Base Asphalt grade C$/t $/st
Low High Change Low High Change
British Columbia 150/200A or PG 64-25(80/100A) 570 590 508 526 -8
Alberta 150/200A 570 585 508 522 -8
Saskatchewan 150/200A 580 600 517 535 -8
Manitoba 150/200A 560 600 500 535 -8
Western Canada Posted Spot Prices for AsphaltCurrent Posted Spot Price Effective Date
Company (Location) Asphalt Grade (C$/t) ($/st)
Husky (Edmonton, AB) 150/200A 675 602 10 May
Husky ( Vancouver, BC) PG 64-25 (80/100A) 715 638 10 May
Husky (Prince George, BC) 150/200A 735 656 10 May
Husky (Kamloops, BC) 150/200A 725 647 10 May
Husky (Winnipeg, Manitoba) 150/200A 715 638 10 May
5M-20 17 May 2013
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Canada – Methodology
Eastern Canada posted prices for asphalt: These are posted prices announced by suppliers and refiners in the Quebec market for asphalt grades they supply (conventional and polymer). The prices are listed by company, location and grades supplied, along with differentials for premium grades. The posted prices are reported in C$/t with effective dates.Eastern Canada asphalt prices for Quebec: This is actual selling prices in the Quebec market for grade PG 58-28.Eastern Canada asphalt prices for Ontario: This is actual selling prices in the Ontario market for grade PG 58-28. Roofing BUR liquid prices: This is built-up roofing pricing in the Ontario market.Western Canada posted spot prices for asphalt: These prices are also known as “rack postings” in western Canada. They represent pricing to stationary asphalt plants at various locations. Grades represented are Pen 150/200A for Edmonton, Price George, Kamloops and Winnipeg. The grade for Vancouver is PG 64-25 (Pen 80/100A).Western Canada asphalt prices for British Columbia, Alberta, Saskatchewan and Manitoba: These prices represent the “current market” and include winning quotes at highway tenders. Winning quotes are “fob the closest” supplier. Grade represented is Pen 150/200A.
hhh
600
625
650
675
700
725
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Quebec Ontario
Quebec/Ontario C$/t
hhh
570
580
590
600
610
620
630
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Alberta C$/t
westernCanadabyC$50/t,mostlyforPen150/200specifications.Thepriceincreaseswhichtookeffecton10Mayremainedun-changedthisweek.
• InManitoba,WinnipegPen150/200rack(postedspot)pricesincreasedtoC$715/tfromC$665/tpreviously.InAlberta,Edmon-
tonrack(postedspot)pricesforPen150/200increasedtoC$675/tfromC$625/t.InBritishColumbia,Vancouverrack(postedspot)pricesforPG64-25(Pen80/100A)increasedtoC$715/tfromC$665/t.InKamloops,Pen150/200wasraisedtoC$725/tfromC$675/t.InPrinceGeorge,Pen150/200wasraisedtoC$735/tfromC$685/t.
5M-20 17 May 2013
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European bitumen pricesRack prices, fob* 13-17 May €/t**** 13-17 May $/t
Low High Change Low High Change
Netherlands-Rotterdam 445 455 578 591 -10
Belgium - Antwerp 445 455 578 591 -10
Brussels** 450 460 584 597 -10
Germany north 455 470 591 610 -10
northeast 455 470 591 610 -10
south 460 475 597 617 -10
southwest 455 470 591 610 -10
west 460 475 597 617 -10
France north** 465 485 604 630 -11
central** 470 490 610 636 -11
south** 480 500 623 649 -11
UK south (UKP) 480 500 733 763 -12
Italy*** 450 470 584 610 -10
Spain northeast 480 500 623 649 -11
southwest 460 480 597 623 -11
fob Mediterranean cif northwest Europe 16-May Change 16-May Change
Straight-run fuel oil 3.5% sul. $/t 581.00 -3.75 Straight-run fuel oil 3.5% sul. $/t 598.25 -4.25
Vacuum gasoil 0.5 % sul. $/t 749.00 22.88 Vacuum gasoil 0.5 % sul. $/t 751.75 25.63
* truck prices, fob refinery or terminal. **Delivered price. *** Price includes €31/t tax. ****UK prices in Pounds.
Bitumen’s HSFO alternative $/t 16-May Change
Mediterranean 537.85 -10.13
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575
600
625
650
675
700
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Italy Spain
Italy vs Spain rack $/t
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500
550
600
650
700
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Rotterdam rack HSFO
Rotterdam rack vs NW Europe HSFO barges $/t
hhh
480
490
500
510
520
530
540
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
UK south UKP/t
hhh
600
650
700
750
800
850
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
South Africa West Africa
South Africa rack vs West Africa cargo cfr $/t
5M-20 17 May 2013
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Europe and Africa bitumen Northwest Europe
• Pricesheldsteadyinmid-Mayaftertypical€10-15/tdeclinesthattookeffectfromthestartofthemonth.
• Costpressuresweredownwardovertheweekbutstillwellupmonth-on-month.Prompthigh-sulphurfueloilbargepricesslippedto$586.75/tfobRotterdamon16Mayfrom$591/taweekearlier,butthepricelevelwasstill$18/thigherthanon16Aprilwhenitstoodat$568.5/t.Thedailyaveragepricefor1-16Maywasat$583/t,downamodest$4.5/tfrom$587.5/tinthe1-16Aprilperiod.
• DatedNorthSeaphysicalcrudeoilstoodat$104.37/bl,up89¢/blfromaweekearlierandup$5.05/blfrom16April.
• Bitumendemandslowedafterabusymid-ApriltoearlyMayperiodofconstructionandproductfill-uprequirements.ShippingsourcesindicatedthatcargoflowshadslowedinthemiddleweekofMay,althoughtankersarestillfullyemployedonalreadyagreedbusinessthroughtoearlyJune.
• CargoflowsintoFranceremainwelldownonlastyear,reflectingthestillweakstateofthateconomyandofconstructionsectoractiv-itythere,withScandinavia,UKandIrelandcurrentlythemainexportoutletsforcargoesemanatingfromnorthwestEuropeanexportterminals,principallyRotterdam.
• NofreshSouthAfricaboundrequirementswerereportedasthe6,300DWTtankerBitRedomadeitswaytowardsthecountrywithitslatest5,000tcargofromtheColasspecialityproductsrefineryinDunkirkonthenorth-easterncoastofFrance.Thecargoissched-uledtoarriveinDurbanon28May.
• WhiletheFrencheconomyenteredatriple-diprecession,andtheoveralleconomicpictureacrossEUeconomiesremainedpoor,thereweresignsofverymodestGDPgrowthinGermanyandtheUK.
• EUdatashowedthattherecessionacrossthe17-nationeuro-zonehascontinuedintoasixthquarter.Arecessionisdefinedastwoconsecutivequartersofnegativegrowth.
• Theeconomyofthe17-nationblocshrankby0.2%intheJanu-arytoMarchperiod,accordingtotheEU’sstatisticsofficeEurostat,withnineofitsmembersnowinrecession.
• Germany’seconomy,generallyconsideredtobetheeurozone’sstrongest,grewbyjust0.1%inthequarter,farweakerthanexpect-ed.Economistshavingexpectedarateof0.3%.Annualfiguresfromthecountry’sStatisticsOfficealsoshowtheGermaneconomyhasshrunkby1.4%whencomparedwithayearago.
• Butinastatementitsaidthiswaspartlyduetoseverewinterweather:“TheGermaneconomyisonlyslowlypickingupsteam.Theextremewinterweatherplayedaroleinthisweakgrowth.”
• TheoutgoingGovernoroftheBankofEngland,MervynKing,issuedaseparateforecastthatUKGDPgrowthwouldbemorethan1pcin2013,upfromtheBanks’spreviousforecastof0.9pc.
France
• Ageneralriseinpost-winterconstructionactivityacrossEuropesinceearlytomid-Aprilhasmaskedanespeciallypooryear-on-yearperformancebyFrance,wherebitumendemandisexpectedtobewelldownonlastyearwhenitdroppedbyaround20pctoanestimated2.32mnt.
• Indicationsofthatslowdownwerebeingseenontheshippingmarket,wheretankerbrokerspointedtomuchlowercargomove-mentsintoFrenchdestinationslikeNantesandBayonnethanaroundthesametimelastyear.
• TheweakstateoftheFrencheconomywasunderlinedbyofficialfiguresthatshowedthecountryhadslippedintorecessioninthefirstquarterof2013,makingitthethirdtimeithasdonesoinfouryears.TheFrencheconomyshrankby0.2pcinthefirstquarterafter0.2pcfallinthefourthquarterof2012.FrenchPresidentFrancoisHollandesaidheexpectszerogrowthin2013,comparedwiththegovern-ment’spreviousforecastof0.1pcgrowth.EurostatsingledoutFranceinitsEU-widesurveyasacountrywithrecordunemploymentandlowbusinessandconsumerconfidence.
Europe/Africa wholesale bitumen differentials to HSFO $/tMarket Bitumen’s differential to HSFO
The Netherlands (Rotterdam) -15 to -5
Spain -55 to -40
Italy -70 to -60
Greece -40 to -25
Ivory Coast +65 to +75
Grade represented Pen 60/70 or equivalent grade
hhh
-100
0
100
01 Jun 12 24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Netherlands (Rotterdam) SpainItaly GreeceIvory Coast
Europe/Africa wholesale bitumen differentials to HSFO $/t
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• ThebitumentankerSanMatteowasscheduledtodischargea5,000tcargointotheLBCstorageterminalatLaveraon17May.
Benelux
• Theshutdownofapropanede-asphaltingunitatShell’sPernisrefineryonRotterdambecauseofa2MayfirewashavingnoimpactondomesticsuppliesintheBeneluxorneighbouringmarkets.Buttheshutdown,whichisthoughttohavehitbitumenproductionattherefinerythatmainlyproduceshardgradesoftheproduct,didhaveatemporaryimpactontheinternationalcargomarket.ShippingsourcespointedtodelaystocargoloadingsfromfromRotterdamaround8-11MayasaresultofthePernissituation,butsaidthesituationhadreturnedtonormalbythemiddleofMay.
• ShellhasconsistentlydeclinedtocommentontheimpactofthefireandshutdownonitsbitumenproductionatPernis,andithasalsorefusedtocommentonthegeneraloperationalstatusoftherefinerysinceitsfirststatementsjustafterthefire.TheoilmajorwasbelievedtohavemovedstoredcargoesontobitumentankersorintoRotterdamstoragetankswhileproductionwasbeinghitattherefinery.
Hungary
• Trans-borderprojectsbetweenHungaryandSlovakiawillbeontheagendawhentheprimeministersofthetwocountriesmeetinJulythisyear.AccordingtotheHungaryprimeminister’soffice,Hungaryproposedlaunching60border-crossingroadconstructionprojectsduringthe2014-2020EUfinancialframeworkperiod.Thereareonly28crossingpointscurrently.Theprogrammewouldincludeconstructionof43roads,reconstructionof14roadsandthreeprior-ityprojects:constructionoftheM15andM2dualcarriagewaysandanewroadbridgeovertheDanubeatKomarom.Thetotalcostoftheprojectswouldamountto€170mn.Atmorethan700kmlong,theSlovak-HungarianbordersectionislongerthanthatofGermanyandFrance.
• Theseprojects,ifitgoesahead,willbeamuchneededboosttotheHungarybitumenmarketwhichhasseenconsumptiondeclineoverthepastseveralyearsowingtothefinancialcrisis.
• ButaglimmerofhopesurfacedthisweekwithpreliminarydataoutthisweekshowingthatHungary0.7pchighercomparedtoQ4lastyear.However,theministryofnationaleconomyconcededthatslowergrowthisstillexpectedduringthefirst-halfofthisyearalthoughitwaslikelytoimproveoverthelatterhalf.
Mediterranean
• Regionalactivitywasthin,withlackoftankeravailabilityakeyfactorlimitingspotbusinessbyindependenttradingfirms.Nev-ertheless,therewerestillspotbitumentankerslyingidleawaiting
business,includingtheIverBrightanchoredoffCeutaoffnorthernMoroccoandthemarVictoriaoffCartagena,Spain.
• AnItalianoilrefinerwasreportedseekingatankertomovea3,000tbitumencargofromItalytotheCypriotportofLimassolforsecondhalfMayshipment.NearlyallimportsintoCyprusaremadeintoLarnaca,butimportflowshavefallenoffsharplythisyearinthemidstofthedeepeconomicandfinancialcrisisinthecountry.TraderssaidtherareLimassol-boundshipmentwasinlargepartdependentonfinancialtermsbeingagreed.Shippingremainsanobstacle,withnospottankeravailabilityreportedintheeasternMediterraneanwiththeexceptionoftheSanBenjaminowhichwaslaidoffataTurkishshipyarduntilearlyJune.
• AMediterraneantradermeanwhileindicatedthathewassepa-ratelylookingtomovetwocargoesintoCyprusbytheendofJune.Shippingremainamajorobstacletosuchspotshipments,withnospottankeravailabilityreportedintheeasternMediterraneanwiththeexceptionoftheSanBenjaminowhichwaslaidoffataTurkishshipyarduntilearlyJune.
• Thepictureonexportpricediscountswasmixed,withItalianshipmentsstillindicatedat$60-70/tbelowfobMediterraneanhigh-sulphurfueloilquotes,Spanishcargoesvaluesaroundthe$50/tmarkandGreekflowspeggedinthe$25-40/trangeunderthesamefueloilquotes.
Italy
• TheweakstateoftheItalianmarketwasunderlinedonceagainbyfreshindustrydatashowinganothersteepyear-on-yeardemanddecline.
• UnionePetroliferafiguresshoweddomesticbitumenconsump-tionstoodat106,000tinApril,1.9pcupfrom104,000tinthesamemonthof2012(1.9pcup).ButfortheJanuarytoAprilperiod,totalconsumptionstoodat303,000tin2013versus377,000tinthesameperiodoflastyear,a19.6pcfall.
Spain
• GovernmentdatashowingSpainrecordeditsfirstevertradesurplusunderlinedthepoorstateofthedomesticeconomythatisreflectedinthebitumensector.Domesticbitumendemandsofarthisyearisrunningwellbelow2012volumes,whichstoodatanestimated1.65mn–itselfaround400,000tdownfrom2011.
• Thecountry’srefiners,CepsaandRepsol,arefocusingonexportactivitytomakeupforsomeofthelostvolumes,althoughinstalla-tionofcokingunitatSpanishrefineriesoverrecentyearshasgiventhemtheoptionofwhetherornottoproducebitumen.
• AlgeriaremainsakeyexportoutletforSpanishexports,partlybe-causeoftheheavyshortfallinMoroccanvolumesthisyearbecause
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ofalengthybitumenunitshut-downthere.Cepsaissupplyingsize-ablebitumenvolumestoAlgeria,inadditiontomorethan200,000tofbitumenbeingsuppliedtothecountrybyRepsolunderthisyear’sAlgerianimporttender.
• TradersarefindingitincreasinglydifficulttopickupfobcargoesoutofSpain,withthecountry’srefinerspreferringtoexporttheirownvolumesintoNorthAfricanandWestAfricandestinations–aswellasnorthwestEurope–onadeliveredbasisusingeithertheirownshipsortankerstakenbythemundertermcharteroroccasionalspotarrangements.Thathasreducedthetransparencyofspotexportprices,althoughtherewereindicationsthatdiscountstofobMediterraneanhigh-sulphurfueloilquotesforSpanishexportship-mentshavenarrowedtoaround$50/t.
Lebanon
• Domesticbitumenconsumptionisexpectedtofallto40,000-50,000tthisyear,thelowestlevelforseveralyearsanddownmassive-lyfrom75,000tin2012.Lackoffunds,slowanddelayedpayments,aswellaspaymentdefaultsforconstructionworkareallkeyfactorsinslowingdownprojectactivityandbitumendemand.ThelackofaLebanesegovernment-afterresignationofPrimeMinisterNajibMiqatiinMarch-isanothermajorfactorhamperingprojectandfundingapprovals,whiletheunlikelihoodofanylocalorcentralgovernmentelectionsduring2013promisesnopre-electionboostforthecoun-try’sroadsector.NegotiationshavebeenunderwayforsometimeonformationofanewCabinet,withnoimmediateresolutioninsight.
• AmajorLebaneseimporterhassofartakendeliveryofthree3,000tcargoesthisyear,allintoBeirut,thelastoneonboardtheKaterinaLthatarrivedinApril.Another2,500-3,000tcargocouldbemovedattheendofMayfromEgyptintoBeirutdependingontankeravailability.RecentimportsfromGreecehavebeenpricedat$5-12/tpremiumstofobMediterraneanhigh-sulphurfueloilquotes,cifbasisBeirut.Withfreightcostspeggedataround$40/t,thatwouldindicate$28-35/tdiscountstothefueloilquotesonafobGreecebasis.
• TheLebaneseimportpicturecouldchangedramaticallyintheeventofaresolutionintheSyrianconflictthatshouldtriggerasurgeinreconstructionactivityinthecountry.Thatwouldneces-sitateamajorboostinbitumenrequirementsthatisunlikelytobemetintheshorttermatleastbySyrianrefineries,principallythebitumen-producingBaniasrefineryontheMediterraneancoast.MuchoftheshortfallindomesticsupplywouldbemetbyLeba-neseimportsintoitscoastalstoragetanksbeforetruckshipmenttoSyrianlocations.
• ThebiggestLebaneseroadprojectthatwouldgeneratesig-nificantbitumenrequirementswouldbetheproposedmotorwayfromBeiruttotheSyrianborder.Thefirstsectionofthatprojectthatcouldpotentiallybegiventhego-aheadasearlyaslate2013isfromChtaura–inlandfromBeirut–totheSyrianborder.
Turkey
• ItalianconstructioncompanyAstaldisaidinitsfirstquarterre-sultson14MaythatanintensificationofworkontheThirdBospho-rusBridgewasplannedforthisyear.Thecompanyalsoreferredtoworkcarriedoutduringthefirstquarterof2013onthefirstphasesofconstructionoftheGebze-Orhangazi-Izmirmotorway.
• Initsfirstquarter2013financialresultsreleasedonalsoon14May,TurkishrefinerTuprasreferredto“majorbatteryshutdownsandunplannedoutagesatitsrefineries”duringthequarterthathadhitoveralloutputofoilproducts.
• Tuprassaidfirstquarter2013refinerycapacityutilisationforcrudeoilwas62.4pcandoverallcapacityutilisation(includ-ingalternativefeedstockslikestraight-runfueloilandvacuumgasoil)was64.6pcversus69.7pcand71.5pcrespectivelyinthefirstquarterof2012.BitumenyieldatTupras’refinerieswas9pcversus6pc,whilefueloilyieldstoodat19pcversus22pcayearago,highlightingagrowingshare.Bitumenproductioninthefirstquarterof2013was199,000t,comparedwith137,000tinsamequarterof2012.
• TotalTuprasbitumenproductionin2012stoodat2.8mnt,withanestimated100,000tofadditionalconsumptionintothecountry.DomesticasphaltplayersexpecttoseeasignificantriseinTurk-ishbitumendemandin2013,withonesourceforecastinga10pcrise.
Tunisia
• NegotiationswerecontinuingregardingtheawardoftheTunisianimporttenderfor60,000tofPen30/50fordeliveryintotheportsofRadesandGabesfromMay2013throughtoApril2014.Regionaltraderssaidfundingdifficultiescouldstandinthewayofanearlyconclusionofthetender,whichwastohavebeenawardedbyaround15May.
• Aseparatetenderwasreportedtohavebeenissuedfortheim-portof12,000tofbitumen–mostlikelyinthree4,000tcargoes–intotheTunisianportofSfax.
Libya
• HopesthatLibyanbitumenconsumptionandimportrequire-mentswouldrisesharplyfrom2013onwardsweredentedbyItalianpressreportsthatamajorplannedmotorwayfromEgypttoTunisiaviaLibyahadbeencancelled.TheprojectwastohavebeenlargelyfundedbyItaly.
• Therewasnoconfirmationofthatnews,butoccasionalimportscargoescontinuetoflowintoLibya.ThelatestcargoshipmentwasexpectedtobeloadedatEni’sLeghornexportterminalattheoilcompany’sLivornorefineryon28-30may,destinedforMisrata.
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Morocco
• ThemainBituroxtechnologybitumenproductionunitattheSamirrefineryinMohammediawasstilldowninmid-May,asithasbeenforthemuchoftheyearsofar.ButSamirbegantoraisebitu-menproductionbyrunningthede-asphaltingunitattherefinery.Whiletherefinerexpectstosteadilyraisebitumenproductionoverthenextfewmonths,itwasanticipatingaslighttemporarydropinproductioninthelastweekofMay.
• Thedesigncapacityofthenewandlargerbituroxunit–installedinthesummerof2011andaffectedbythecurrentlengthyshutdown-wasslatedat280,000t/yr,althoughitcanproduceupto330,000t/yr.ThesmallerandolderbitumenunitatMohammediahasadesigncapacityof140,000t/yr.
West Africa
• StrongNigerianconstructionsectorgrowthremainsanimportantfactorindrawingsizeableimportvolumestothecountry.Themostrecentshipmentwasdischargedinmid-MaybythetankerFuNingWanattheEcomarine(ECM)terminalinCalabar,southeastNigeria.Delaysofseveraldayswerereportedincompletingthedischargeoperationforthe4,000-5,000tcargothatwasreportedtohavebeenpurchasedbyNigerianimporterWabeco.TheFuNingWanisaves-selintheSargeantMarineglobalbitumenfleet.
• Anothermajorglobalshippingandtradingcompanywasreport-edseekingratesforspotcargoshipmentsfromarangeofMediter-raneanexportpointsintostoragetanksacrossWestAfrica,althoughnofreshbookingwasreportedtohavebeencompleted.
• PricesfordeliveredcargoesintoNigeriaandGhanawerebeingreportedinthe$695-715/tonadeliveredbasis,equivalenttofobAbidjanpricepremiumstofobMediterraneanhigh-sulphurfueloilaveragingaround$70/t.
• Nigerianconstructionsectorgrowthhelpedboostthecountry’snon-oilGDPgrowthto7.89pcinthefirstquarterof2013evenasaweakeroilsectorshoweda0.54pcdropinitsGDPcontribution.OverallNigeriangrowthslowedslightlyinthequarterto6.56pccom-paredwith6.99pcinthefourthquarterof2012,stillinlinewithtrendgrowthof5-8pcinNigeriasince2003.
Zambia
• TheZambianRoadDevelopmentAgencyisupgradingtheD153fromtheGreatEastRoadatMoonoPolicecheckpointviaPalabanatoD151atLukoshiBasicschool(54km)includingD566SilverestRoad(4.7km),D156StateLodgeRoad(8km)andD154Palana-LeopardsHill(7.5km)roadinLusakaprovinceusingfundsapprovedinthe2012AnnualWorkPlanfortheRDA.SealedbidsmustbesubmittedbyFriday,24May.
Kenya
• Issuessurroundingdelayedandlackofpaymentforworkalreadydone,aswellasthelackofconcretegovernmentbudgetaryplansonnewspending,continuetosuppressKenya’sappetiteforimportedbitumen.
• SomeoftheexportsfromtheMideastGulfandIran,whichwouldnormallygotoKenya,arefindingalternativeoutletsinSouthAfricainstead.
South Africa
• WhileSouthAfricanbitumendemandisstartingtotaperoffwiththeapproachofwinter,aprolongedandextensiveseasonofrefinerymaintenanceinSouthAfricahasreduceddomesticsupply.This,coupledwitharebateonimportdutieswhichcameintoeffectinMarch,hasseenariseinimportsofdrummedmaterial.
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Africa and Asia bitumen pricesLocal currency/t $/t
Rack prices, fob (13-17 May) Low High Change Low High Change
Africa
South Africa (rand) 6,240 6,426 41 670 690 -20
South Korea (won) 720,000 730,000 645 654 -14
Mumbai, India (rupees) 37,753 38,753 180 689 707 -3
Mumbai, India — drums (rupees) 40,833 41,833 180 745 763 -4
Thailand (baht) 18,287 18,436 173 615 620
Indonesia (rupiah) 6,357,000 6,357,000 11519 652 652
Singapore ($S) 782 788 14 625 630
Singapore ex-refinery (to Malaysia) 738 751 10 590 600 -2
Japan (¥) 68,000 74,000 665 724 -22
Export cargo/drum prices, fob
Iran - - - 490 500 -5
Iran — drums - - - 530 550
Bahrain (dinar) 207 207 550 550
Thailand (baht) 17,841 17,990 21 600 605 -5
Singapore ($S) 757 766 10 605 612 -3
Singapore — drums 888 901 16 710 720
Japan (¥) 57,554 58,065 1758 563 568
Taiwan ($) 18,012 18,252 299 600 608 -2
South Korea (won) 644,888 650,467 11706 578 583 -2
Cargo prices, cfr
West Africa Nfc* Nfc* - 695 715 38
China (yuan)
North coast 3,772 3,815 11 613 620
East central 3,784 4,079 -26 615 663 -6
South coast 3,796 4,049 -11 617 658 -4
North Vietnam — drums Nfc* Nfc* - 732 759
South Vietnam — drums Nfc* Nfc* - 732 751
*Not freely convertible. Note: All cargo prices are for heated tankers unless otherwise specified. Exchange rates used effective for Thursday of week reported.
Asia products Economics
fob Singapore Bitumen’s HSFO alternative $/t 16-May Change 16-May Change
HSFO 180cst $/t 606.00 -15.50 Singapore 562.89 -18.12
HSFO 380cst $/t 599.00 -13.25
Gasoil, high pour $/bl 113.70 -0.80
hhh
575
600
625
650
675
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Singapore rack Ex-refinery to Malaysia
Singapore rack vs ex-refinery prices to Malaysia $/t
hhh
600
650
700
750
800
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Singapore drum Singapore cargo
Singapore drums - Singapore fob $/t
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Asia and Middle East bitumen Singapore
• Singapore’sbulkpricesinchedlowerby$3/tto$605-612/tfob,assellerscutpricestofindhomesfortheirJune-loadingcargoes.
• Amplesuppliesintheregionalmarketpromptedseveralsellerstocuttheiroffersinthespotmarket.
• DealsforSingapore-bulkorigincargoesweredoneatawiderangeof$605-612/tfobthisweek,withthebulkoftheJunevolumesheadedforIndonesia.
• ButSingaporecargoeswerestilldeemedtobeuncompetitiveintoVietnamorsouthChinawithcheaper-pricedalternativesfromSouthKorea,China,ThailandandTaiwan.
• TheonlybrightspotinthephysicalmarketremainedinIndone-sia,withstate-ownedsupplierPertaminaseekingseveralsmall–sizedcargoesforend-May/JuneintoJava.BuyinginterestisalsosteadyinPhilippines,withthecountry’sthreesupplierslikelytotakeonecargoeachinJune.
• ButdemandremainedsoftinChina,VietnamandAustralia.
• Singapore’sbulkpricesforJunecargoeswereassessedatouchlowerby$3/tto$605-612/tfob,takingintoaccountofthephysicaldealsconcludedthisweek.
• Singaporedrumpriceswereunchangedat$710-720/tfobthisweek.Offersremainedat$720/tfobbutbuyinginterestfordrumswasweak.
• Singapore’srackpriceswereunchangedat$625-630/tthisweek.
• Singaporeex-tanktruckpricesweredownby$2/tto$590-600/tthisweek.OneSingaporerefinermovedasignificantnumberof
tanktrucksintoMalaysiathisweekataround$600/t.TheincreaseintanktruckdeliveriespromptedMalaysiandealersandthecountry’sstate-controlledrefinertocutpricesaswell.
• Singapore180cstfueloilpricesroseoncrudeandpapergains.OnshorestockpilesofresidualfuelsinSingaporerosetotheirhigh-estlevelsinceearlyDecember.ActivityduringtheafternoontradinginSingaporewasmuted.Offersfaroutnumberedbids13tofivewithinterestprimarilyin380cstoffers.Singapore’sonshorestocksofre-sidualfuelsroseby2.6mlnblasof15Mayto22.3mlnbl.Theboostrepresentsa13pcincreaseoverthepreviousweekandthehighestlevelsince5December2012.Importsoffueloilroseby11.7pcfromthepreviousweekto1.22mntfortheweekending15May.Exportsoffueloilalsorose,by36.9pcoverthesameperiodto316,690tfortheweek.
Malaysia
• Thecountry’sstate-controlledrefineranddealerscutpricesthisweekfollowingtheinfluxoftanktrucksfromSingaporethisweek.
• Thecountry’sstate-ownedrefinerwasproducingatclosetofullcapacity,leadingtoexpectationsofoversupply.
• Demandremainedlacklustrefollowingtheelectionsandlocaldealersexpectpricestocomeunderfurtherpressureinthenearterm.
Thailand
• BulkpricesinThailandfellby$5/tto$600-605/tfobthisweek.
• WeakbuyinginterestfromsouthChina,VietnamandAustraliameantthatThairefinersstruggledtofindoutletsfortheirJunecargoes.
• OneThairefinersoldacargointosouthChinaatthe$600-605/tfoblevelthisweek.
hhh
300
400
500
600
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Bahrain Iran
Bahrain cargo vs Iran cargo $/t
hhh
300
400
500
600
24 Aug 12 16 Nov 12 22 Feb 13 17 May 13
Drum Cargo
Iran drum vs cargo $/t
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• Domesticdemandstayedweak,astheThaigovernmenthasyettoissuefundingforpavingprojects.
Indonesia
• DemandinIndonesiaremainedsupportedbybuyingbythecountry’sstate-ownedsupplierPertamina.
• Pertaminaisseekingsmall-sizedcargoesforend-May/JuneloadingintoJava.Negotiationsremainedongoing.
• Demandisexpectedtopickupasthecountryentersintoitspeakpavingseason.
• SeveralotherimportersalsopickedupJune-loadingcargoesthisweekwhichweremostlydoneatadeliveredbasisofhigh-$630s/ttolow-$640s/t.
Prices of China main refineries 13 - 17 May Yuan/t
Place (Area, Province)
Refinery Grade Posted Price
Change from
previous week()
Contract Price
Change from
previous week()
Posted Price in
$/t
Contract Price in
$/t
Nothwest Xinjiang Petrochina Karamay AH-70, AH-90, AH-110, AH-130 4,800 4,720 780 767
AH-100, AH-140, AH-180 4,750 4,680 772 761
Sinopec Tahe 90-A 4,750 4,630 772 752
90-B 4,750 4,620 772 751
Gansu Petrochina Lanzhou AH-90 No sale - No sale - - -Shannxi Sinopec Xi’an AH-90 4,750 4,680 772 761
Northeast Liaoning Petrochina Liaohe AH-70, AH-90, AH-110, AH-100, AH-140 4,750 4,700 772 764
Panjin Northern AH-90, AH-110, AH-100, AH-140 4,750 4,710 772 765
North Hebei Petrochina Qinhuangdao AH-70, AH-90 4,870 4,800 791 780
Central Henan Sinopec Luoyang AH-90 4,750 4,700 772 764
East Shandong CNOOC asphalt AH-70, AH-90 4,900 4,850 796 788
Sinopec Qilu 70 -A 4,800 4,700 780 764
90 -A, 70-B 4,750 4,680 772 761
90-B 4,700 4,600 764 748
Sinopec Jinan AH-100 No sale - No sale - - -
Zhejiang Sinopec Zhenhai 70-A, 90-A 4,750 4,700 772 764
70-B, 90-B 4,850 4,800 788 780
CNOOC Daxie AH-70, AH-90 No sale - No sale - - -
Petrochina Wenzhou AH-70, AH-90 4,820 4,700 783 764
Shanghai Sinopec Shanghai AH-70 4,750 4,600 772 748
Jiangsu CNOOC Taizhou AH-70, AH-90 4,900 4,830 796 785
Sinopec Jinling 70-A, 90-A 4,830 4,750 785 772
South Guangdong Sinopec Maoming 70-A, 90-A 4,700 4,650 764 756
Sinopec Guangzhou 70-A, 90-A 4,700 4,650 764 756
Petrochina Gaofu AH-70, AH-90 4,800 4,700 780 764
Southwest Sichuan CNOOC Sichuan AH-70, AH-90 5,450 5,320 886 865
Source: China refiners and bitumen market participants
Australia import cargo prices $/tLow High Change
Thailand fob (Class 170) 630 635 -3Thailand fob (Class 320) 630 635 -3Singapore fob (Class 170) 630 640 -3Singapore fob (Class 320) 630 640 -3
Vietnam
• Thecountry’sstate-ownedsupplierwillbuyatleast2spotcar-goesforJunedeliveryfromChinesestate-ownedrefinerSinopec.
• Thedealiswidelyexpectedtobedoneat$600-605/tfoblevel.Thistranslatestoadeliveredbasisof$630s/tcfr.
• Thestate-ownedsupplierisalsoexpectedtobuyaJune-delivery
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cargofromaSingapore-basedtrader.ThecargoisoriginallyfromTaiwan.
• TankswerealmostfullinNorthVietnambutimporterswereseek-ingsmallvolumesinJunefortheirterminalsinthesouth.
• OneSouthKoreanimporterofferedJunecargoesat$640/tcfrbutthelevelprovedtobeunworkablegivencompetitivepricesfromChina.
South Korea
• SpotpricesinSouthKoreaeasedby$2/tto$578-583/tfobthisweek.
• SpotoffersforJunewerelinedupatthelow$580s/tfobthisweek.
• Buttradingactivitywasmuted,withweakdemandinChinaandVietnam.
• Marketparticipantscontinuetoawaittheissueofaselltenderbythemid-sizedSouthKoreanrefiner.
Japan
• OneJapaneserefinersoldaJune-loadingcargoatthe$560/tfoblevelintoeastChinathisweek.
• Thecargowilltranslatetoadeliveredpriceof$610/tcfrbasis,notwithstandingthe8pcimportduty.
• Domesticdemandremainedstable.However,pavingprojectshaveyettobegin,contrarytoearlierplansthatworkswillkickoffaftertheGoldenweekinearlyMay.
Australia
• VerylittlespotdemandwasheardalthoughAustralianbuyerswillcontinuetoreceivetheirtermcommitmentsfromThailandandSingapore.
• Spotpriceswereassessedatouchlowerthisweek,intandemwiththelossesinSingaporefobvalues.
• Spotpriceswerereviseddownwardsto$630-635/tfobSinga-poreandThailandforC-170cargoeswhileC-320cargoesoutofSingaporefelltothe$630-640/tfoblevel.
Taiwan
• NofreshbuyingactivitywasheardoutofTaiwanthisweek.
• Butmarketparticipantswhowontheselltenderawardedby
privately-ownedsupplierSimosalastweekfaceddifficultiesfindingahomeforthecargoesduetohighprices.
• Taiwan’sfobpricewasnotionallyassessedatouchlowerby$2/tto$600-608/t,trackinglossesinSouthKorea,SingaporeandThailand.
China
• ImportpricesintoChinawerestableat$613-620/tcfrinnorthernChinabutdownby$6/tto$615-663/tcfrineasternChinaanddownby$4/ttoat$617-658/tcfrinsouthChina.
• VeryfewimportdealsweredoneduetorelativelyfulltanksinmostpartsofChina.
• DemandforimportswillremainweakoverthenextfewweekswiththeongoingrainyseasoninsouthChina.
• Ex-refinerypriceswerestablethisweekbutactualsaleswerelow.Localrefinerscontinuedtogiveout50yuan/tdiscountsforbulksales,saidmarketparticipants.
• Thecountry’sstate-ownedrefinerSinopecwillexportuptofourcargoesinJuneatalevelof$600-605/tfob,mostlydestinedforVietnam.
India
• Indiahasraisedthecountry’srackpriceby180rupees/t($3.2/t)on15May.
• Demandremainedstrongthisweek.Domesticrefinersweremaximisingbitumenproductiontomeetstrongdemandinthecountry.
• PackedbitumenimportsfromIrancontinuetomoveintoIndiaataslightlyhigherlevelat$550-560/tcfr.
Bahrain
• SpotpricesinBahrainwereflatat$550/tfobthisweek.
Bitumen freight rates 13 - 17 May $/t
Route Low High Change from last week (+/-)
Singapore - South China 52.00 56.00 -2.50
Singapore - East China 62.00 69.00 -2.50
Thailand - South China 52.00 56.00 -2.50
Thailand - East China 61.00 69.00 -2.50
Taiwan - East China/South China 31.00 36.00 -0.50
South Korea - East China 30.00 34.00 -0.50
Note: East China and South China both refer to coastal ports in the region
Source: Bitumen market participants
5M-20 17 May 2013
Page 18 of 21 Copyright © 2013 Argus Media Ltd
Argus Asphalt Report
Iran
Iran export market
• Iranbitumenpriceswereunchangedandmarketdemandwasweak.
• PasargadOilsupplied24,000tofbitumen,butnodealclosedthisweekontheIranMercantileExchange(IME).
• Withincreasedvacuumbottom(VB)feedpriceforexportsfobBandarAbbas,producersswitchedtopurchasingVBtomeetlocalsalesrequirementsinsteadofexports.
• Withweakdemand,producersbelievedpriceincreasesarenotreasonableatthepresenttime.
• PasargadOilofferedPen60/70inbulkfobBandarAbbasandfobImamKhomeiniportat$694/tand$651/t,respectively,ontheIME.However,nodealclosedthisweek.
• Alsotraders’pricesweresteadyinthemarket,bitumenbulkcargoeswereofferedat$490-500/tfobBandarAbbasbytraders.Drumssoldat$530-550/tfobBandarAbbas.
• CorusEnergyDevelopmentCompanysold2,000tinbulkat$549/tforpaymentinUSDontheIMEfobBandarAbbas.
• PasargadOilCompanyoffered7,000tindrumsofPen60/70at$769/tfobBandarAbbas,butnodealwassettledontheIME.JeyOilsuppliedPen60/70and85/100at$635/tontheIMEthisweek,andthepremiumfordrumspackingandfobchargeswillbenegoti-atedonthesettlementdate.
• JeyOil’spricewassteadyontheIME,andthecompanysettled25,000tofPen60/70at$635/tforcashinadvanceex-worksEsfa-han.BitumencargooffersfromPasargadOildidnotsellthisweek.
• JeyOil’ssettledpriceonthefreeexchangemarketwasabout$448/tex-worksEsfahanthisweek.Althoughresellersofferedbitumeninbulkat$470/tanddrumswereofferedat$510-515/tex-Esfahan.
• NeginAzerbaijancompanysold3,000tofPen60/70inbulkat$620/tontheIME.
Report of Iran domestic sale for 11-16 May 2013Bitumen Grade Volume (MT) Settled price (Rials/Kg)
Pen 60/70 18,338 13,000-13,810
Pen 85/100 1,390 13,004
MC-250 577 17,434-17,622
Emulsions Rapid 0 7,721
Slow 0 -
Exchange rate 1$ =24,774Rials, t= Metric ton
Report of Iran export sale for 11-16 May 2013
Bitumen grade Producer
Average of settled price on bitumen
($/t)
Packing Volume (MT) Destination
Pen 60/70
Pasargad Oil
694 Bulk 0 Export by ship from Bandar Abbas port769 drum 0
651 bulk 0 Export by ship from Imam Khomeini port
659 bulk 0Export to neighbor-ing countries or move to ports for export by ship ,sup-ply ex-Tehran
744 Drum 0
659 bulk 0
Export to neighbor-ing countries or move to ports for export by ship, sup-ply ex-Arak
638 Bulk - Export to neighbor-ing countries by truck, supply ex-Tabriz723 Drum 0
674 Bulk 0
Export to neighbor-ing countries or move to ports for export by ship, sup-ply ex-Shiraz
Corus Energy Development Co. 549 Bulk 2,000 Export by ship from
Bandar Abbas portJey Oil 635 Bulk 15,000
Export by ship and truck
Negin Fakhr Azer-baijan 620 Bulk 3,000
Bam Gum Ayegh 625 Bulk 500East Bitumen Company No supply Bulk -
IsoGum Tabriz 620 Bulk 0Bamgostar zarin shargh 600-660 Bulk 270
Akam Bitumen Co. 615 Bulk 500Azar Bam Co. No supply Bulk -Esfahan Bitumen Co. 550 Bulk 500
Ghiran Pakhsh No supply Bulk -Ayegh Bam Bastan 555 bulk 500
Pen 85/100
Jey Oil 635 Bulk 10,000
Export by ship and truckPasargad Oil
Same as 60/70
price
Bulk /drum 0
Akam Bitumen Co. No supply Bulk -Negin Gum Pars 600 Bulk 100 Export by ship and
truckPen 40/50 Dejpa Bitumen Co. 500 Bulk 2,860MC-250 Jey Oil 820 Bulk - Export by ship or
truckMC-150 Star Caspian Kavir No supply Bulk -Exchange rate 1$ = 24,774 Rials, t= Metric ton
• DejpaBitumenCompanysettled2,860tofPen40/50at$500/tontheIME.
• Otherproducerssettledsmallcargoes(seetableonexportsales).
5M-20 17 May 2013
Page 19 of 21 Copyright © 2013 Argus Media Ltd
Argus Asphalt Report
• IMEcostsincludingbrokeragefeeandIMEcommissionwas$1.77/tforbuyersonthesettledpriceex-PasargadOilfobthisweek.
• Traders’priceswereheardat$490-500/tforbulkfobBandarAbbas.Also,traderssupplieddrumswereat$530-550/tfobBandarAbbas.
• MainproducersparticipatedinIMEthisweek,butmarketsentimentwasweakandexportsalesvolumedecreasedby7pcto35,230tofdifferentproducts.
Iran local market
• LocaldemandwasweakandIranlocalbitumenpricesweresteadyandproducerskeptpricesunchanged.
• Thehistoricaltrendshowedthatlocaldemandwillincreasesincenextmonthwithwarmerweatheranticipated,althoughupcomingpresidentialelectionsinIranwillimpactconstructionprojects.
• JeyOilhaskeptpricesunchangedandsettledPen60/70and85/100at13,004Rials/kgontheIME.
• PasargadOil’spricewasunchangedandthecompanysoldPen60/70and85/100at13,004Rials/kgex-Arakfactory.Also,theyset-tledon13,036Rials/kgex-Tehranfactory.
• PasargadOilsettledPen60/70at13,810Rials/kgex-BandarAb-basandShirazfactories.
• NeginFakhrAzerbaijansold410tofPen60/70at13,000Rials/kg.
• Shirazrefinery,AsphaltandBitumencompany,CorusEnergyandIsoGumTabrizsuppliedPen85/100and60/70,butnodealsclosedontheirofferedprices.
• JeyOilsettled17,622Rials/kgex-Esfahanthisweek.PasargadOilsettledMC-250at17,434Rials/kgex-AbadanandShirazfacto-riesthisweek.Otherproducersdidn’tparticipateontheIME.
• Producerssold20,305tofdifferentproductsontheIME.Salesvolumeshavenotchangedsignificantlychangedtothepreviousweek.
• Supplyofbitumenexceededdemandinthelocalmarket.Pro-ducerssupplied115,305tofdifferentproductsforlocalcustomersontheIME,butonly20,305tindemandwasregisteredthisweek.
• VBpricesdecreasedfromEsfahanandTehran,butwerefirmatotherrefineries.NationalIranianOilCompany(NIOC)sold15,000tex-Esfahanat10,807Rials/kg.Also,7,000twassoldat11,333Rials/kgex-Tabrizrefineryand15,000tex-Shirazrefineryat11,333Rials/kg.Theysettled20,000tofVBfeedex-Tehranrefineryat10,878Ri-als/kg.Nofeedsuppliedex-BandarAbbasrefinery.
5M-20 17 May 2013
Page 20 of 21 Copyright © 2013 Argus Media Ltd
Argus Asphalt Report
Oil industry briefs
• Crude benchmarks diverge:Crudepricesmovedindifferentdirections,asweakUSeconomicdatapulledvalueslower.AtlanticbasinbenchmarkNorthSeaDatedroseby89¢/blto
$104.37/blintheweekto16May,whileUSbenchmarkJuneWTIfellby$1.23/blto$95.16/bl.UpcomingmaintenanceattheNorthSea’sEkofiskfieldinJuneissupportingNorthSeaDated.WTI’sdiscounttoNorthSeaDatedwidenedto$9/blfrom$7/blaweekearlier.Butthespreadremainswellbelowthe$20/blseenearlierthisyear.Lastweek’snarrowerdiscountbrieflyopenedthearbitragefor
crudeshipmentstomovetotheUSGulfcoast.AtankerwasbookedtotakeacargofromHoundPointintheNorthSeainlateMaytotheUSGulfcoast.ThecargoissaidtobelightsweetForties,whichwouldbethefirstsuchfixturetomovetotheGulfcoastinamonth.WeakerrefiningmarginsinEuropeinMayaredampening
demandforlightsweetcrudes.PremiumsforlightsweetNigeriangradestoNorthSeaDatedhavefallen,andaround20NigeriancargoesremainunsoldforJuneaheadofthereleaseoftheJulyprogramme.WeaknortheastAsiandemandisweighingonlightsourMideast
Gulfcrude.Middledistillate-richAbuDhabiMurbanistradingatdiscountstotheAdnocofficialprice,despiteareductioninthelatestAdnocprice.HighgasoilexportsfromJapanhadbeendraggingdowngasoilmarginsintheregion,butmarginsarenowrecoveringaslowerChineseexportscountertheincreasedJapaneseavailabil-ity.TheEuropeanjetfuelmarketiswellsupplied,aslowerfreight
costsmakeitviableforAsia-Pacificcargoestomovetotheregion.ButacontangointheEuropeanjetfuelswapsmarket—whereforwardpricesarehigherthanpromptvalues—isincreasingtheincentivefortradingfirmsandairlinestostorecargoesaheadofthesummertravelseason.USsummerdrivingdemandisboostinggasolinevalues,but
othermarketslookvulnerable,andrelativelyweakcrudepriceshavedonelittletobolsterrefiningmargins.Globalmarketsarewellsuppliedwithotherproducts,asstutteringeconomicgrowthlimitsdemand,justasrefineriesreturningfrommaintenanceboostoutput.
Crude oil
Prices Americas $/bl 16-May ChangeWTI Cushing 95.16 -1.23
WTI Midland 95.57 -0.92
WTS Midland 95.50 -0.94
ANS USWC 105.24 -1.23
Mixed Sweet (MSW) 89.31 -0.05
Lloyd Blend (pipeline) 77.11 3.25
Western Canadian Select (WCS) 76.98 2.85
Maya del USGC 98.75 -0.86
Prices international $/bl Basis 16-May ChangeTapis 110.37 0.89
North Sea Dated 104.37 0.89
Dubai 100.10 -1.02
Arab Heavy, fob Ras Tanura
Differential to Asia Oman/Dubai -0.70
Differential to Europe Ice Bwave -4.40
Differential to US ASCI -3.30
Kuwait fob
Differential to Asia Oman/Dubai 0.50 0.45
Urals NWE 103.77 0.99
Urals Med 104.27 0.89
14
17
20
23
26
29
32
May-12 Aug-12 Nov-12 Feb-13 May-13
mn
bl
Source: EIA
Weekly US ending stocks of asphalt and road oil
hhh
10
15
20
25
30
26 Mar 13 12 Apr 13 30 Apr 13 16 May 13
WTI month 1 diff Lloyd Blend Hardisty month 1 $/bl
hhh
0
5
10
15
20
25
$/bl
22 Feb 14 Mar 05 Apr 25 Apr 16 May
Brent-WTI $/bl
5M-20 17 May 2013
Page 21 of 21 Copyright © 2013 Argus Media Ltd
Argus Asphalt Report
PublisherAdrian Binks Chief operating officerNeil BradfordCEO AmericasEuan CraikGlobal compliance officerJeffrey AmosCommercial managerKaren JohnsonEditor in chiefIan BourneManaging Editor, GlobalCindy GalvinManaging Editor, AmericasJim KennettEditor: Nasreen Tasker Tel: +1 203 261 [email protected]
Customer support and sales: email: [email protected]
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Argus Asphalt Report is published by Argus Media Inc.
Registered office: Argus House,175 St John St, London, EC1V 4LW Tel: +44 20 7780 4200 Fax: +44 870 868 4338email: [email protected] 1462-8872Copyright noticeCopyright © 2013 Argus Media Ltd. All rights reserved.By reading this publication you agree that you will not copy or reproduce any part of its contents (including, but not limited to, single prices or any other individual items of data) in any form or for any purpose whatso-ever without the prior written consent of the publisher.
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DisclaimerThe data and other information published herein (the “Data”) are provided on an “as is” basis. Argus makes no warranties, express or implied, as to the accuracy, adequacy, timeliness, or completeness of the Data or fitness for any particular purpose. Argus shall not be liable for any loss or damage arising from any party’s reliance on the Data and disclaims any and all liability related to or arising out of use of the Data to the full extent permissible by law.
Slackrefiningmarginsarecurbingdemandforcrudeandthislookslikelytokeepalidonoilprices.
• Tensions leave investment plans in limbo:AmonthafterNicolasMadurowaselectedVenezuelanpresident,growingten-sionsinthecountryareleavingnervousforeignoilfirmsandevenclosealliesreluctanttomakebigenergyinvestmentsandloansthatCaracashopedtosecureoncethenewgovernmentwasinpower.Foreignoilcompanieswithsubstantialcapitalcommitmentsto
upstreamjointventureswithstate-ownedoilfirmPdVhavebeenunsettledbyMaduro’sinabilitytodispeloppositionchargesthatthe14Aprilelectionswerefraudulent.Madurothisweeksentthearmyontothestreetsinwhatthegovernmentsaysisacampaigntofightrecordviolentcrime.Maduro,whoreplacedthelateHugoChavez,isalsofacingasevereeconomiccrisismarkedbyshortfallsofbasicgoodsandgallopinginflation.PdVisstarvedforcashtofunditsambitiouscapitalexpenditure
(capex)planstodoublecrudecapacityto6mnb/dandgaspro-ductioncapacityto13bnft³/d(134bnm³/yr)by2019.ButCaracashassofarbeenunsuccessfulinsecuringfundsfromabroad,evenfromalliesChinaandRussia.State-runChinaDevelopmentBankconfirmeda$4bnloantoVenezueladuringavisittoVenezuelathisweekbyChinesevice-presidentLiYuanchao.ButLicalledformore“efficiency”inbilateralrelations,aremarkthathintsatfrustrationoverhowCaracashasusedChinesefundssofar.Andthevisitdidnotproduceanybreakthroughdealson$8bn-10bnofnewcash-for-oilloanssoughtbyMaduro.AplannedmeetingattheendofAprilbetweenRussianstate-
controlledoilfirmRosneft’spresident,IgorSechin,andVenezuelanenergyministerRafaelRamirezwascalledoffwithoutexplanation.RosneftandChina’sstate-ownedoilfirmCNPCarePdV’sbiggestupstreamjointventurepartners.Ramirez,whoisalsopresidentof
PdV,saidon4Maythatthecompanywillmakemorethan$208bnworthofcapexin2013-18toachieveitscrudeandgasproductiongrowthtargets.Thisfigureis$62bn,ornearly23pc,lowerthanPdV’srollingsix-year“SiembraPetrolera”spendingplan.PdVwillbedirectlyresponsibleforfunding80pcofthisinvest-
ment,including$25bnincorecapexthisyearalone,Ramirezsays.Ramirezhassince2011pressuredforeignoilcompanieswithminoritystakesinupstreamjointventureswithPdVtodevelopandexecuteaggressivecapexplanstoincreaseVenezuelancrudeproduction.ButevenVenezuela’sofficiallyreportedcrudeproductionfellby
3pcto2.90mnb/din2012.Argusandotherthirdpartiesestimatedproductionatabout2.35mnb/dlastyear.Ramirezwarnedthismonththatatleast10foreignoilfirmsinupstreamjointventureswithPdVcouldlosetheirlicencesiftheydonotstartsubstantialcapexrightaway.
Argus global asphalt/bitumen conferences:Europe/Africa Bitumen
Cannes, France — 12-13 June, 2013
Asia Bitumen Singapore — 25-27 September, 2013
Americas Asphalt SummitMarch, 2014
illuminating the markets
Argus Europe/ Africa Bitumen 2013
The fourth annual event will discuss market opportunities and challenges in Europe and Africa and how changing production and supply patterns are shaping the market.
Argus is the global leader in international asphalt pricing information — this event is part of a global series, with Argus bitumen/asphalt events also being held in Asia and the US.
Gold Sponsors
Petroleum
If you are interested in sponsorship and exhibition opportunities at the conference please contact Amber Ward on +44 20 7 780 4341 or [email protected]
12-13 June JW Marriott Cannes, France
Conference Topics:
The impact of crude prices on bitumen
prices
European re�nery economics
Growth of the Turkish market
Developments in north Africa and their
political impact on bitumen
consumption
French bitumen market overview
Update on emulsions and technology
Bitumen shipping and trade flows
Con�rmed Speakers:Ned Leary Risk Marketing, European, Team Leader, Shell International Trading and Shipping
Olaf Grodotzki General Manager, GKG Mineraloel Handel
Nasreen TaskerGlobal Editor - Argus Asphalt Report, Argus
Siamak EsfehanianExport Manager, Binas Baya Energy
Konstantinos PlousiosTrader, Asphaltos Trade
Jean Louis PettierGroup Procurement Manager, Icopal
Edman Nafrieh Managing Director, Gilda Tar
Media Partner
Exhibiting Sponsor
Kurt Wynendaele Business Area Director for Continental, Nynas Bitumen
Gülay Malkoc Technical Director, Turkish Asphalt Contractors Association (ASMUD)
Michael Zormelo Managing Director, Mustek Bitumen
Jean-Claude Ro é Senior International Advisor, COLAS
José Javier García Pardenilla Manager, Ditecpesa Asphalt Products (Ferrovial) Panelist: Keyvan Hedvat Deputy Editor, Europe Asphalt, Argus Panelist: Peter Ross General Manager Europe and South Africa, Shell
argusmedia.com/euro-bitumen Cannes, France
Agenda: Argus Europe/Africa Bitumen 201312 June
9.00 - 9.45 Registration and Co�ee 9.45 - 10.00Chairperson’s Opening RemarksNasreen Tasker, Global Editor - Argus Asphalt Report, Argus
Session One – Big Picture
10.00 - 10.25Keynote AddressRelationship between Crude and Bitumen
Impact of Light Tight Oil on crude marketsOutlook for the bottom of the barrelWhat could change in the next few years?
Ned Leary, Risk Marketing, European Team Leader, Shell International Trading and Shipping
Session Two – Europe and Growth Markets
10.25 - 10.40Overview of the French Bitumen Market
Impact of economic di�culties on European economyEuropean supply and demand zonesWhat re�nery closures mean to the bitumen market
Kurt Wynendaele, Business Area Director for Continental, Nynas Bitumen
10.40 - 11.00Questions and Answers Peter Ross, General Manager Europe and South Africa, Shell Kurt Wynendaele, Business Area Director for Continental, Nynas BitumenNed Leary, Risk Marketing, European Team Leader, Shell International Trading and Shipping
11.00 - 11.30 Morning Co�ee
11.30 - 11.55Turkish Bitumen Market and the opportunuties
Current market overviewProspects for the futureChallenges and the opportunities
Gülay Malkoc, Technical Director, Turkish Asphalt Contractors Association (ASMUD)
11.55 - 12.20Romania
12.20 - 12.50Black Sea Panel Discussion
Project �nance
12.50 - 14.10 Lunch 14.10 – 14.35Renewed Asphalt Products Market in Spain
Results from the crisis : technical solutionsSupply and demand changesTypes of projects : public administration
José Javier García Pardenilla, Manager, Ditecpesa Asphalt Products (Ferrovial)
Session Three – Roo�ng and Waterproo�ng
14.35 - 15.05Bitumen for Roo�ng and Waterproo�ng in the EUJean Louis Pettier, Group Procurement Manager, Icopal
15.05 - 15.40Speed Networking
15.40 - 16.10 A�ernoon Co�ee
Session Four – Middle East
16.10 - 16.40Middle East Bitumen
Overview of Middle East supply/demandCurrent Middle East trade with Europe and Africa Future prospects
Siamak Esfehanian, Export Manager, Binas Baya Energy
Session Five – Shipping
16.40 - 17.10 Bitumen Shipping and Trade Flows
New builds and market growth Arbitrage in bitumen tradeE�ects of piracy on trade flows
Konstantinos Plousios, Trader, Asphaltos Trade
17.10 - 17.15 Chairperson’s Closing Remarks End of Day One 17.15 - 19.30 Drinks Reception
argusmedia.com/euro-bitumen Cannes, France
Day 2: Argus Europe/Africa Bitumen 2013 13 June
9.00 - 10.00Registration and Co�ee
Session Six – Pricing
10.00 - 10.15Chairperson’s Opening Remarks Nasreen Tasker, Global Editor - Argus Asphalt Report, Argus 10.15 - 11.00Keynote AddressGlobal Bitumen Pricing TrendsNasreen Tasker, Global Editor - Argus Asphalt Report, Argus
Session Seven – Africa
11.00 - 11.25North Africa
11.25 - 11.50East and West AfricaEdman Nafrieh, Managing Director, Gilda Tar
11.50 - 12.20 Morning Co�ee 12.20 - 12.45Introducing New Products into Africa
Imports into East Africa Michael Zormelo, Managing Director, Mustek Bitumen
12.45 - 13.20
African Panel Discussion Edman Nafrieh, Managing Director, Gilda TarMichael Zormelo, Managing Director, Mustek Bitumen
13.20 - 14.30 Lunch
Session Eight – Emulsions and Technology 14.30 - 14.55Trends in Bitumen Modi�cation
Developmental trendsFuture growth
Olaf Grodotzki, General Manager, GKG Mineraloel Handel 14.55 - 15.20Bitumen for Roo�ng and Waterproo�ng in the EUJean Louis Pettier, Group Procurement Manager, Icopal
15.20 - 15.30Questions and Answers
15.30 - 15.40Chairperson’s Closing Remarks End of Conference
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TERMS AND CONDITIONSIn these Terms and Conditions the expressions: “we”, “us” and “our” refer to Argus Media Limited a company incorporated in England with registered company number 01642534 and whose registered o¡ce is at Argus House, 175 St John Street, London, EC1V 4LW; and “you” and “your” refer to you. Subject to availability, we accept bookings for events through the online, electronic or postal submission of a registration form. Upon our communication to you (including by email) of our acceptance of your booking, there shall be a legally binding contract between you and us incorporating these Terms and Conditions. Payment 1. If payment is not received in full at the time of booking, your booking will be provisional until payment is received in full in accordance with paragraph 2 below. You acknowledge that we cannot guarantee bookings made on a provisional basis. 2. The event fee is payable within 30 days of the invoice date and in any event must be received in full 7 days before the event. 3. Fees are a §xed price and unless otherwise stated reductions and discounts cannot be o¨ered should you not wish to attend the entire event. 4. In order to qualify for any “early bird” discounts, booking and payment in full must be received prior to the date speci§ed above and on the invoice. 5. UK Excise Regulations, delegates from all countries are required to pay VAT on any event taking place in the UK.Cancellations & Substitutions 6. If you are unable to attend the event, you may send a substitute provided that you inform us in writing to [email protected] at least 48 hours before the commencement of the event. 7. Cancellations made in writing to [email protected] before 15 May 2013 will be refunded in full, less a 15% administration charge. No refunds will be given for cancellations received on or a«er 15 May 2013. 8. Failure to attend all or part of an event for any reason whatsoever will be treated as a late cancellation and no refunds will be given. 9. If the event is cancelled for any reason within our control, then the registration fee will be fully refunded. We shall not be liable for any other loss, damage, costs (including without limitation travel, visa or accommodation costs), expenses or other liabilities incurred by you in connection with such cancellation. Refunds may take up to 25 business days. Events 10. Our agendas are correct at the time of issue; however, it may be necessary to make some amendments to the content, speakers, location, and/or timing of the event. 11. Please advise us of any
special requirements (such as access or dietary requirements) at the time of booking. 12. We reserve the right to refuse admission to an event for any reason. 13. Views expressed by speakers at the event may not be the views of Argus. All event materials are provided to you on an “as is” basis and we make no warranty as to the completeness or accuracy of such materials. 14. You agree that, unless otherwise expressly stated, we own all intellectual property rights in all event materials and delegate lists. 15. You may not §lm, photograph or otherwise record all or any part of the event without our prior written consent. 16. You must comply with all applicable laws and any health and safety requirements (including no smoking signs) in respect of the event.Privacy & Marketing 17. Any personal data you disclose to us will be processed in accordance with the Data Protection Act 1998 and our privacy policy. 18. Your personal data may be used by us and carefully selected third parties to inform you about other products and services that may be of interest to you via telephone, post and/or email. If you do not wish to receive such marketing information, please contact us 19. You agree that we may use your company name in marketing promotions in connection with this event. 20. We may record (by audio and/or visual means) all or part of the event. You agree that we may use and distribute such recordings for the purposes of training, publicity and documentation.General 21. It is your responsibility to arrange appropriate insurance cover for your attendance at the event. 22. You are fully responsible and liable for any loss or damage caused by you to property or individuals at an event. 23. Except in respect of death or personal injury caused by our negligence or for fraud, our total aggregate liability in connection with the event shall be limited to the fee paid by you. 24. You are responsible for safeguarding your own property at the event. We accept no liability in respect of any damage to, or the« or loss of, your property. 25. These Terms and Conditions together with the registration form set out the entire agreement between you and us. 26. If any provision of these Terms and Conditions (in whole or in part) is found by any competent authority to be unenforceable or illegal, the remainder of provisions shall remain in force. 27. These Terms and Conditions shall be governed by the laws of England and you agree to submit to the exclusive jurisdiction of the English courts.
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