China’s independent refiners’ demand for bitumen blend has been slipping in recent weeks amid tepid margins for producing asphalt, largely due to seasonal slowdown in construction activity in winter, sources told S&P Global Platts on Dec. 22.
Bitumen blend prices are under pressure due to weak demand for asphalt amid a sharp decline in maintenance and construction works in winter, industry sources said. The price of bitumen blend is largely steady from November at around minus $20-$21/b against ICE Brent futures on a DES Shandong basis, according to trade sources with close knowledge of the matter. “But few deals were heard done and stocks in the market have remained high,” said a trade source. Some sources believe the difficulty in getting tax deduction on bitumen blend during imports has deterred independent refineries. “The margins for producing asphalt […]