argus asphalt report · 9/7/2012 · (see brochure at the back of the report) argus asian bitumen...

Weekly International Pricing and Analysis

Argus Asphalt Report

Copyright © 2012 Argus Media Ltd of 21

Asphalt prices at key locations 3-7 Sep

US (rack prices, fob) $/st Low High Change

Northern New Jersey/New York City Metro 520 550 -15

Coastal Texas 575 585

Northern Illinois/eastern Iowa 500 560

Southern California 550 560

Western Washington/Oregon 610 625

US (waterborne, fob) $/st

East Gulf coast (barge fob) 484 495 11

West Gulf coast (barge fob) 480 485

Midwest (barge fob) 430 475 13

Canada (rack prices, fob)

Quebec 567 581 -2

Ontario 636 645 5

Europe (rack prices, fob)

Rotterdam 633 646 17

Southwest Spain 665 677 49

Other international (rack prices, fob)

South Africa 715 740 33

Singapore 640 640 8

Other international (waterborne, fob) $/t

Iran (cargo fob) 450 473 -9

Singapore (cargo fob) 632 637 4

Taiwan (cargo fob) 620 625 18

South China (ex-Singapore cfr) 655 687 11

Note: st - short ton, t - metric tonne.

9M-36 7 September 2012

Summary

• USEastcoastmarketsfellontheweekascompetingofferscon-tinuetodrivedownpricesalongtheseaboard,butsomeparticipantsarebeginningtoseeapricefloor.Wholesalebargemarketswerequiet,andinlandrailpriceswereflat.

• USGulfcoastmarketswerereturningtonormalactivityfollowingHurricaneIsaac.WhileGulfcoastwholesaleasphaltpriceshavebeenmovingupwithhighercrudeoilprices,higherfueloilpricesandstrongcokereconomicsaremakingotheralternativesabetteroptionforrefiner’svacuumtowerbottomsthanasphalt.

• USMidwestroofingfluxmarketforSeptemberwassofterthanAugust.NewpricerangesforSeptemberarebetween$520-540/st,downfrompreviousrangesof$540-560/stforlastmonth.Thedropinfluxpricesrepresentedalageffectintheroofingmarketaspricesnowcatchupwiththedeclinesthattookplaceinthepavingmarketafewweeksago.

• DomesticpricesacrosscontinentalnorthwestEuroperosesharplyatthestartofSeptemberaftermonthlynegotiationsbetweenmajorbuyersandsellerswereconcludedinlateAugust.Increasesof€25-30/twerewidespreadacrossGermanyandtheBenelux,and€20-25/tinFrance,but£50/thikesthathadbeenplannedintheUKwerenotyetimplementedandwereexpectedtobepostponeduntil1October.

• InPortugal,ahikeof€36/t,effectivefrom1September,pushedaveragedomesticpricesto€555-575/tdelivered.Therisereflectshigherfeedstockcostsratherthanimproveddemand.

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

Asphalt industry briefs 20

Oil industry briefs 21

Argus Media contact information 21www.argusmedia.com/Asian-Bitumen-2012

(see brochure at the back of the report)

Argus Asian Bitumen 2012

Singapore10-12 October

Asia-Pacific growth and impactof changing Middle East supplies


of 21 Copyright © 2012 Argus Media Ltd


• WarmeranddrierweatherinEastAfricaisheighteningbitumendemandslightlyasthemonsoonseasondrawstoaclose,butitisnotyetenoughtodrivepricessignificantlyupwards.Importvalueshavenarrowedtoaround$620-650/t,althoughsomestillseeawiderrangeofaround$600-670/tcfrMombasaorDaresSalaam.

• MostSouthAfricanrefinersincreasedtheirSeptemberlistpricesbyR250-350/tonthebackofhighercrudecosts,pricedinUSdol-lars,whichwasexacerbatedbyaweakerSouthAfricanrand.Onaverage,domesticpricesrosetoR5,900-6,000/t.

• Singaporebulkcargopricesareupby$4/tthisweekto$632-637/tfobasbuyinginterestinAsiagainmomentum.ElsewhereinAsia,strongbuyinginterestfromMalaysia,Vietnam,AustraliaandevenThailandaresettokeepthespotmarketinatight-suppliedsituation,butdemandinthePhilippinesremainsweak.

• DomesticsalesinMalaysiafailedtoimprovethisweek,con-trarytoearlierexpectations.BulkpricesinThailandareupby$4/tto$624-629/tfob.BitumenbuyinginterestinIndonesiaremainsstrong.VietnamesesuppliersarecontinuingtolookforOctobercargoes.

• SouthKorea’sspotpricesjumpby$15/tto$615-620/tfobthisweekonstrongbunkervaluesinthedomesticmarket.

• ImportsintoChinaareupby$18/tto645-650/tcfrinnorthernChina,by$11/tto650-707/tcfrineasternChina,andby$11/tto$655-687/tcfrinsouthernChina.SpotpricesinTaiwanareupby$18/tto$$620-625/tfobthisweek.

• India’sdomesticpricesareupby2,053rupees/tbeginning1September.

Argus Market Map: Global wholesale bitumen prices, fob basis $/t

New Jersey

$518/t

West Gulf coast

$532/t

Bahrain

$575/t

Note: Med and NWE HSFO prices on 6-Sep were used to calculate Europe and Africa wholesale bitumen prices.

East Gulf coast

$540/t

Greece

$613/t

Ivory Coast

$696/t

Iran

$462/t

Italy

$586/t

Japan

$608/t

Netherlands

$625/t

Singapore

$635/t

South Korea

$618/t

Spain

$588/t

Taiwan

$623/t

Thailand

$627/t




US and CanadaEast coast

• Eastcoastmarketsfellontheweekascompetingofferscontinuetodrivedownpricesalongtheseaboard,butsomeparticipantsarebeginningtoseeapricefloor.Wholesalebargemarketswerequiet,andinlandrailpriceswereflat.

• Pricesforrailtonnagearewidelyspreadfrom$430-520/stdependingondeliverypoint.

• TheturnaroundatMarathon’s100,000b/dDetroitrefinerybeginstoday.Theplantwillbedown70dayswhileitperformsitsHeavyOilUpgrades,bringingcapacitytoabout120,000andtyinginacokertoallow80,000b/dofheavy-crudeprocess-ing.TheoutagecoulddrawsomeMidwesttonnageofftheEastcoastandprovidepricesupport,onerefinersaid.

• IntheNortheast,MidwesttonnagecanreachfarthereastthanAlbany,NewYorkatdiscountstoEastcoastwholesaletonnage,butvolumesarelimited,mitigatingcompetition,onerefinersaid.

• InsouthernConnecticut,priceswereinthe$520-540rangeforPG64-22,exclusiveofthegrossreceiptstax.

• WesternNewYorkandPennsylvanianmarketsfelltotradebetween$520-555/stfrom$530-560/st.Competitionhasbeenheardaslowas$500/stinthearea,butatlimitedvolumes,onerefinersaid.

• PricecutsonPG64-22werereportedeffective1SeptemberforsouthernNewJersey,wherepricesfellto$520-540/stfrom$540-550/stlastweek.

• InBaltimore,Maryland,pricesfelltothe$520-540/stbandfrom$540-560lastweek.PricesincentralandlowerVirginiawereat$540-550/stforPG64-22.

• PricesfellinthehighlycompetitiveAtlantametromarket.Atlantapostedpricesdroppedto$540/stfrom$555-565/stlastweek.CostalCarolinasmaintainedtheirpremium,butlarge-volumeaccountsaregettingpricessimilartotheAtlantamarket,onedistributorsaid.

• PricesinFloridamarketsremainedflatontheAtlanticandGulfsides,rangingfrom$560-590/st.

• Therewereunconfirmedreportsthatasoutheastasphalt-producingrefinerywillbeshuttingdownbytheendof2012andthesouthernterminalswillbesuppliedbyexcesscapacityfromanorthernrefinerywhichcanruncheaperCanadianandothercrudes.

East coast asphalt prices $/stRack prices, fob (3-7 Sep) Low High Change

Maine 575 590*

MA/NH 575 590*

Connecticut 520 540 -10

Eastern and central NY 570 585

Western NY/Western PA 520 555 -10

Northern NJ/NY C Metro 520 550 -15

Delaware/SE PA/south NJ 520 540 -10

Maryland/northern Virginia 520 545 -18

Central and lower Virginia 540 550 -15

Coastal Carolinas 570 585

Inland Carolinas 545 585 -10

Inland Georgia 540 540 -20

Coastal Georgia/northeast Florida 575 590

West coast of Florida 560 560

Southern Florida 575 575

Waterborne prices

New Jersey barge fob 440 500

N New Jersey/New York City Metro cif cargoes 460 520

New England cif cargoes 530 550*

Product prices6-Sep Change

Heating oil ¢/USG 312.00 0.43

3% HSFO $/bl 101.50 0.47

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 478.67 -6.85

Arab Heavy 591.48 -16.38

Asphalt’s HSFO alternativeEast coast 521.14 3.14

Asphalt’s HSFO alternative arbitrageEconomics to US east coast

From US Gulf coast -57.03 -2.90

From the Med -135.81 -8.16

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New England cif cargoes diff New Jersey barge fob $/st




Gulf coast

• ActivityreturnedtonormalinUSGulfcoastmarketsfollowinginthewakeofHurricaneIsaac.Whilewholesaleasphaltpriceshavebeenmovingupwithhighercrudeoilprices,higherfueloilpricesandstrongcokereconomicsaremakingotheralterna-tivesabetteroptionforrefiner’svacuumtowerbottomsthanasphalt.

• OneEastGulfcoastrefinersolda40,000-50,000blsofPG67-22forSeptemberloadingat$484fob.Thesepriceswereslightlyhigherthantherefiner’spriceslastmonth.

• BulksalesofPG67-22fromanothereastGulfcoastwerereportedat$495/st.Quotesarerangingbetween$495-500/stfobbarge,otherwisefeedstockisbeingdirectedtocokingunits,therefinersaid.

• Withlowdemand,buyersareslowtotransactintherange,meaningmostrefinersarerunningcokersatfullcapacityoverasphaltproduction,onerefinersaid.

• Refinersarekeepingthinasphaltinventoriesheadedintofall,withveryfewexpectedtodoanywinterrestocking.Highercrudepricesandlowdemandoverthepastthreewintershavediscouragedbuildinguphighstocks.

• Asphaltpriceswereflatontheweekfortheregion,withnochangesreportedacrossAlabama,Mississippi,andLouisianaforPG64-22.CoastalTexaspriceswerestableat$575-585forPG64-22.

• Lastwinter,WestTexasIntermediatebrokethe$100/blbenchmarkafter2011summerpricesaveraging$95-86/blbetweenJuneandAugust.Thisyear,Septemberpricesareaveraging$95.39/blsofar,uponpricesseeninJune,JulyandAugustthatrangedfrom$82-94/bl.

Gulf coast asphalt prices $/stRack prices, fob (3-7 Sep) Low High ChangeAlabama (southern) 580 590

Alabama (inland) 575 600

Louisiana/Mississippi (southern) 579 584

Louisiana/Mississippi (inland) 580 600

Arkansas/northeast Texas 590 610

Texas (coastal) 575 585

Texas (inland) 550 550

New Mexico 570 575

Waterborne fobEast Gulf coast 484 495 11

West Gulf coast 480 485

Note: Asphaltic crude breakeven economics are for a topping refinery and repre-sent incremental barrels.

Product prices 6-Sep ChangeHeating oil ¢/USG 312.75 0.77

3% HSFO $/bl 101.00 0.47

EconomicsAsphaltic crude breakeven $/stMaya 477.29 14.64

Arab Heavy 613.65 9.97

Asphalt’s HSFO alternative $/stGulf coast 517.03 2.90

General refining economicsFob US Gulf coast ($/bl)3-2-1 crackspread 34.87 -3.07

2-1-1 crackspread 35.11 -2.45

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East Gulf coast barge Maya breakeven

East Gulf coast barge vs Maya breakeven $/st

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650

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East Gulf coast barges HSFO alternative

East Gulf coast barge vs Asphalt's HSFO alternative $/st

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East Gulf coast barge Midwest barge

East Gulf coast barge vs Midwest barge fob $/st




Midwest asphalt prices $/stRack prices, fob (3-7 Sep) Low High Change

West Oklahoma/Texas Panhandle 550 550

NE Oklahoma/Kansas/southwest Missouri 530 575 -10

North Illinois/eastern Iowa (Chicago) 500 560

South Illinois/eastern Missouri (St Louis) 500 575 -30

Western Iowa/Nebraska 575 595

North Dakota/south Dakota 580 600

Northern Minnesota/northern Wisconsin 540 585

Southern Minnesota/southern Wisconsin 510 555

Northeast Indiana/north Ohio/Michigan 525 560 -5

South Ohio/south Indiana/north Kentucky 560 560 -3

South Kentucky/Tennessee 545 565 -10

Waterborne fob

Midwest asphalt barge 430 475 13

Midwest roofing flux barge 520 540 -20

Midwest

• Midwestmarketswerequietwithpriceschanginglittlefromlastweek.

• TherangeforMidwestwholesalerailmarketswidenedintheweek,withthespreadopeningupto$430-475/stfrom$430-460/stfobrefinerylastweek.

• Mostwholesalebusinessisstillbeingdoneeithersideof$440/st,withsomecontractsreportedat$448/standotherstowardtheupperrangeat$460/st.

• Gulfcoastwholesalepremiums,withpricescloserto$500/stfobbarge,couldhelpprovidepricesupportforMidwestnumbers,onerefinersaid.Contractsaregravitatingtowardsthehighendofthespread.

• Midwestbargepriceswidenedtothe$430-475/stfobrefin-eryrangeasonerefinerwasofferingPG64-22bargesat$475fob.

• Fluxmarketsintheregionaresoftening.NewpricerangesforSeptemberarebetween$520-540/st,downfrompreviousrangesof$540-560/stforlastmonth.Thedropinfluxpricesrepresentedalageffectintheroofingmarketaspricesnowcatchupwiththedeclinesthattookplaceinthepavingmarketafewweeksago.

• Rackpricechangeswerescantintheweek,butsomerevi-sionswerereported.PricesinSt.Louiswerereportedaslowas$500/st.KansasCitypricingalsofell,withlowsreportedat$530/st.

• RackpricingintheupperMidweststayedflatontheweek,butslightdropswereseenaroundIllinois,MichiganandIndi-ana.

• Detroitpricesmovedto$560forPG64-22from$570/st.

• PricecutsbecameeffectivethisweekinTennesseethatwid-enedtherangeto$545-565/stfrom$560-565/stinthepreviousweek.Chattanoogapricesmoveddownfrom$565to$545,effective1Septemberfromonemarketparticipant.

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Chicago St LouisOhio/Michigan

Chicago - St Louis - Ohio/Michigan $/st

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450

500

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Midwest roofing flux barge Midwest asphalt barge

Midwest roofing flux barge vs Midwest asphalt barge $/st

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530

540

550

560

570

580

590

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Northeast Indiana - north Ohio - Michigan $/st




Rocky Mountain and west coast

• Rockieswholesalemarketswereunchangedintheweek,aslowinventoriesreducetheneedforrefinerstoreducepricesbeforethepavingseasonends.

• HeavycrudeslikeWesternCanadianSelect(WCS)remainwidelyavailable,butisincreasinglyexpensive.Somerefin-ersanticipateshiftingcrudeslatestolightergradesinthefall.WCSdifferentialtoWestTexasIntermediatehasfallento$9/blfromover$15/blearlierinthesummer.

• Finishedproductalternativevaluescouldmovefeedstockawayfromasphaltproduction,onerefinersaid.

• Refinersanticipatelimitedpricecutsfromtighteningsupplycombinedwithweakmarketincentivetorunmoreasphalt.

• MedianpricesfobrailoutofMontana,WyomingandColo-radoareat$430/t.

• AsphaltrackpricesinRockiesandWestcoastretailmar-ketsstayedflatontheweekforPG64-22.

• InOregon,asphaltpricesaresomeofthehighestintheUSandarebiddingbetween$610-625/st.Marketsarebuoyedbythestate’sgastax,50pcofwhichmustbeusedonroadconstructionandmaintenance.

• Washingtonpostedpricesarelowerat$590-610/st.

• MarketsinsouthernCaliforniahavebeenweakeningintermsofpriceinthelastfewweeks,ascompetingbidsdriveoffersdown.Pricesareflatontheweekat$550-570/stforPG64-10and64-16.

Rocky Mountain asphalt prices $/stRack prices, fob (3-7 Sep) Low High Change

Montana 520 530

Wyoming 520 530

Colorado 520 530

Utah 540 565

Idaho/east Washington 590 600

Wholesale prices

Rocky Mountain (rail) fob 420 440

Product prices (Los Angeles) 6-Sep Change

EPA diesel oil ¢/USG 338.75 -4.83

HSFO 380cst $/bl 107.14 -1.27

Asphalt’s HSFO alternative $/stWest coast 552.93 540.54

West coast asphalt prices $/stRack prices, fob (3-7 Sep) Low High Change

Western Washington/Oregon 610 625

Northern California 620 635

Central California 560 570


Arizona 600 625

Nevada 550 585

Roofing flux rack prices


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Rocky Mountain wholesale rail Midwest asphalt barge

Rocky Mountain wholesale rail - Midwest asphalt barge $/st

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550

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Arizona South Californiawest Washington/Oregon

Arizona - southern California - west Washington/Oregon $/st

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550

575

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South California $/st




Canada

• ExcellentweatherallowedforgoodactivityineasternCanada.Postedpricescontinuetoedgedownasdistributorseyeinventorybalancesattheendofthepavingseason.

• PG58-28pricesfellinMontrealtoarangebetweenC$615-630/t,downfromlastweek’spricingofC$620-640/t.ThenewpricesundercutthewinningbidforPG58-28asannouncedbyQuebec’sMinistryofTransportationforSeptemberofC$621.15/t.

• PricesinOntariostayedflatintheweek,tradingatC$690-700/t.Pricesintheprovincehavestablethroughmostofsum-

mer,withthepriceschangingonlyslightly.

• WesternCanadianmarketsheldflatbutareunderpressureasthepavingseasonends.

• MarketsaroundManitobaarerelativelyweakcomparedwithotherterminalsinwesternCanada,withlastprovincialtenderpricesatC$560-600/t.

• DemandisstrongerinAlberta,wheretonnageistradingbetweenC$600-640/t.

Eastern Canada posted prices for asphaltCompany (location) Asphalt grade Posted prices (C$/t) Differentials Effective dateKildair (Sorel-Tracy, Quebec) PG 58-28 640 30 Aug

PG 64-28 690 50 30 Aug

PG 58-34 polymer 735 95 30 Aug

PG 64-34 polymer 795 155 30 Aug

PG 70-28 polymer 795 155 30 Aug

Suncor Energy Inc. (Montreal, Quebec) PG 58-28 625 31 Aug

PG 64-28 - - 31 Aug

PG 58-34 polymer - - 31 Aug

PG 64-34 polymer - - -

Note: st - short ton, t - metric. *BUR = Built-up roofing.

Eastern Canada asphalt pricesRack prices, fob (3-7 Sep) C$/t $/st

Low High Change Low High Change

Quebec 615 630 -8 567 581 -2

Ontario 690 700 636 645 5

Roofing BUR* liquid prices

Ontario 800 875 738 807 6

Western Canada asphalt pricesRetail prices, fob (3-7 Sep) Base Asphalt grade C$/t $/st


British Columbia 150/200A or PG 64-25(80/100A) 570 620 526 572 5

Alberta 150/200A 600 640 553 590 5

Saskatchewan 150/200A 580 620 535 572 5

Manitoba 150/200A 560 600 516 553 4

Western Canada Posted Spot Prices for AsphaltCurrent Posted Spot Price Effective Date

Company (Location) Asphalt Grade (C$/t) ($/st)

Husky (Edmonton, AB) 150/200A 675 622 05 Jul

Husky ( Vancouver, BC) PG 64-25 (80/100A) 715 659 05 Jul

Husky (Prince George, BC) 150/200A 735 678 05 Jul

Husky (Kamloops, BC) 150/200A 725 668 05 Jul

Husky (Winnipeg, Manitoba) 150/200A 715 659 05 Jul




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.

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Quebec Ontario

Quebec/Ontario C$/t

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Alberta C$/t




European bitumen pricesRack prices, fob* 3-7 Sep €/t**** 3-7 Sep $/t


Netherlands-Rotterdam 500 510 10 633 646 17

Belgium - Antwerp 505 515 20 639 652 30

Brussels** 515 525 18 652 665 27

Germany north 505 520 10 639 658 17

northeast 510 525 10 646 665 18

south 520 540 13 658 684 20

southwest 510 530 13 646 671 21

west 515 535 8 652 677 14

France north** 520 530 8 658 671 14

central** 520 530 8 658 671 14

south** 535 545 5 677 690 12

UK south (UKP) 505 515 804 820 5

Italy*** 480 490 3 608 620 8

Spain northeast 540 555 35 684 703 50

southwest 525 535 35 665 677 49

fob Mediterranean cif northwest Europe 6-Sep Change 6-Sep Change

Straight-run fuel oil 3.5% sul. $/t 652.25 9.00 Straight-run fuel oil 3.5% sul. $/t 667.50 8.25

Vacuum gasoil 0.5 % sul. $/t 854.50 6.13 Vacuum gasoil 0.5 % sul. $/t 856.75 4.63

* truck prices, fob refinery or terminal. **Delivered price. *** Price includes €31/t tax. ****UK prices in Pounds.

Bitumen’s HSFO alternative $/t 6-Sep Change

Mediterranean 598.89 9.89

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North South

Germany: North vs South $/t

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UK south $/t

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Italy Spain

Italy vs Spain rack $/t

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North South

France: North vs South $/t




Europe and Africa bitumen Northwest Europe

• DomesticpricesacrosscontinentalnorthwestEuroperosesharplyatthestartofSeptemberaftermonthlynegotiationsbetweenmajorbuyersandsellerswereconcludedinlateAugust.Increasesof€25-30/twerewidespreadacrossGermanyandtheBenelux,and€20-25/tinFrance,but£50/thikesthathadbeenplannedintheUKwerenotyetimplementedandwereexpectedtobepostponeduntil1October.

• Theincreasesthatdidtakeeffectwerestillinmostcaseswellbelowexpectedhikesaslacklustredemandacrosstheregionthisyearhasmadebuyersresistanttoheftypriceincreases.Regionalsupplierssaidthe1Septemberincreaseswereinsufficienttomakeupfora$50/t(€40/t)jumpinRotterdamhigh-sulphurfueloilbargepricesinAugust,relativetoaverageJulylevels.Bitumenprofitmarginshavethereforebeensqueezedreflectinganestimated10pcdropinnorthwestEuropeandemandsofarthisyearrelativeto2011.

• BitumensuppliersarehopingthattheremainingSeptember-to-Novemberperiodofthisyear’sconsumptionseasonwillrepresentatleastamodestmarketbounce,especiallyinGermanyandtheNetherlandswhereannualgovernmentandregionalbudgetshavebeenlargelyunspentfor2012.

• PlannedrefineryturnaroundsinOctoberwillatthesametimereducebitumenavailability,potentiallycreatingsometightnessthatcouldpavethewayforfurtherpricehikesinthefourthquarter.MaintenanceshutdownsinOctoberwillimpactproductionandsupplyfromtheKPCrefineryinEuropoort,Rotterdam,aswellastheGonfrevillerefineryinnorthernFrance.

Germany/Austria

• PricesinGermanyandAustriarose,typicallyby€25-30/t,reach-ing€520-540/tex-refineryinAustriaandsouthernpartsofGermanyexclusiveofanypromptpaymentdiscountsthatinGermanyare

knownastheskonto.Pricesinthenorthofthecountryweremuchlowerthanthoselevels,withpricesaslowas€490-500/tex-refineryreportedbyonesupplier,althoughthatwasinclusiveofcustomerdiscounts–theskonto–appliedtoaccountswherecustomerspaidpromptlyfordeliveredvolumes.

• Apick-upindemandwasnotedontheGermanmarket,withsuppliersremaininghopefulthatunspentinfrastructurebudgetsforthisyearwillbespentinthecomingmonthstomakeupforsomeofthegroundlostindemandtermsearlierthisyear.Still,mostmarketparticipantsdoubtedthelatesummerbouncecanmakeupforan8.7pcyear-on-yeardomesticdemanddeclinebetweenJanuaryandJune.

• Itwasstillunclearwhetheranybitumenhasyetbeenofferedoutofthe100,000b/drefineryinIngolstadt,southernGermany,whichproducedanestimated200,000-250,000t/yrofbitumenwhenrunbypreviousowners,thenowinsolventPetroplus.Gunvorindicateditwasatleastinitiallyrunninglightcrudesthroughtherefinerythatwouldhavealimitedbitumenyield.MarketsourcesindicatedtheSwitzerland-basedtradingfirm,whichrecentlypurchasedtherefinery,wasfeedingitwithlightsweetcrudes,mainlyCaspianCPCblendandsomeLibyanvolumes.

France

• Acrossthecountry,largecontractvolumeswerebeingagreedatdomesticpricelevelsthatwere€20-25/thigherthanAugustlevels.Theextentofpricehikesweremoderatedbecauseofthedepressedstateofthedomesticmarketthatisstillrunningataround20pcbelowlastyear’sdemandlevels.

• ThePetitCouronnerefineryinnorthernFrance,beingrununderacrudethroughputandproductsoff-takeagreementwithShell,isnowthoughttobeproducingaround35,000-40,000t/monthofbitumen,muchlowerthanthe60,000-70,000t/monththathadbeenantici-patedforthecurrentbitumenconsumingseasonwhentheformerPetroplusrefinerywasrestartedinlateJune.

• Whileoveralldemandremainsweakthisseasonacrossthecoun-try,somebriskspotexportsaleswerereportedintosouthernFranceatpricesupto€545/tdeliveredintheLyon/Rhone-Alpsregionandupto€435/tdeliveredintotheFrenchMediterraneanregion.

Europe/Africa wholesale bitumen differentials to HSFO $/tMarket Bitumen’s differential to HSFO

The Netherlands (Rotterdam) -15 to -10

Spain -50 to -45

Italy -55 to -45

Greece -25 to -20

Ivory Coast +55 to +65

Grade represented Pen 60/70 or equivalent grade

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Netherlands (Rotterdam) SpainItaly GreeceIvory Coast

Europe/Africa wholesale bitumen differentials to HSFO $/t




Benelux

• Pricesupbyaround€25-30/tintheregion,althoughDutchpricegainswerelesspronouncedthaninBelgium,wherepricesarereportedtohavemovedslightlyaboveDutchlevels.Theregionalgainswereneverthelessmuchlowerthanthe€30-40/tincreasesthathadbeenexpectedduringthecourseofnegotiationsinlateAugust.

• TheBelgianmarketremainsfarmorerobustthantheNether-lands,withsomesuppliersindicatingAntwerpex-refinerypricesarenowstandingupto€5/taboveRotterdamex-refinerylevelsfordomesticsalesinBelgiumandHollandrespectively.

UK

• Priceincreasesofaround£50/tthathadwereexpectedtotakeeffectfrom1Septemberwerenotapplied,marketparticipantssaid.Onebuyersaidthefull£50/tincreasewasnowexpectedtobeimplementedon1October.TheUKpostponementnarrowsthepremium,atleasttemporarily,thatUKpriceshaveconsistentlyheldovercontinentalEuropeanlevels.

Romania/Slovenia/Croatia

• TradinginRomaniacontinuestobeadverselyaffectedbypoliti-calinstability.Decisionsonnewcapitalexpenditureareonholdwhiletightpublicfinanceshaveledtoadecreaseinspendingonmainte-nance.

• Meanwhile,volatileforeigncurrencyfluctuationsimpededtradeandliquidityhasalsobeencrimpedbytheavailabilityofcredit,ac-cordingtoseveralmarketsources.

• CompetitionbetweensellerswasstiffwithproductsimportedbytruckandrailfromneighbouringcountrieslikePoland,Hungary,SerbiaandBulgaria.Pricelevelsweredifficulttopinpoint,althoughunconfirmedreportssuggestedlevelsofbetween€480-490/tex-worksfromPoland.

• Averageincreasesof€25-30/twereimplementedbysellersintoSloveniathismonthbringingpricestoaround€600/tdelivered.Butreportsoflowerpricesofaround€550/taboundassellerscom-plainedofaslumpindemand.

• TheCroatianmarketisinmoderatedeclinethisyear,withonesupplierintothecountryexpecting100,000-110,000tofdomesticconsumptionin2012.

Bulgaria

• Workonmajorhighwayprojectsalreadycompletedforthisyear,leavingonlysomeruralroadstobeworkedonintheremainingpartofthisyear’sconstructionseason.Thepenultimatesectionofthe443kmTrakiahighwaylinkingtheBulgarianBlackSeaport,holiday

resortandoilterminalatBurgaswiththecapitalSofiawascomplet-ed,with87kmbuiltinthelatestphaseofprojectwork.Theremaining34kmofthemotorwayisexpectedtobefinishedearlynextyear,probablyinAprilatthestartofthe2013constructionseason.

• TheMaritzaprojecthasbeenprogressingfarmoreslowlythanTrakia,withonlyaround30kmsectionofthatmotorwaysofarcom-pleted.Thefirsttwosectionsofthatmotorwayweretohavebeencompletedbytheendof2012,withtheremaindertobebuiltnextyear.

Portugal

• Ahikeof€36/t,effectivefrom1September,pushedaveragedomesticpricesto€555-575/tdelivered.Therisereflectshigherfeedstockcostsratherthanimproveddemand.ThePortuguesemarketcontinuedtoshrinkastotaldemandinthesevenmonthstoJulyfellby7pcto177,000tcomparedtothesameperiodin2011.Thedowntrendisexpectedtocontinuefortherestoftheyear.Theoutlookfor2013wassombre,withseveralbiginfrastructureprojectslikeanewairportforLisbonandahighspeedrailnetworkshelvedindefinitely.

• PortugueserefinerGalpplanstoshutdownunitsatits110,000b/dPortorefineryfor45daysinthefourthquarterofthisyear.Itwasunclear,andbyhowmuch,theturnaroundwouldimpactonbitumenproduction.

• AbitumencargowasreportedtobeavailableforSeptembershipmentfromPortugal,butnoimmediatebuyinginterestwasheardfortheproduct.

Mediterranean

• Regionalmarketactivityremainedextremelythin,withNorthAfricanimportingcountriesshowinglittleornospotrequirements,althoughtankerswerewellutilisedforregularshipmentstodestina-tionslikeCyprus,TurkeyandRomania.

• Algeria,theregion’sbiggestbitumenbuyer,isstillimportingitsrequirementsalmostexclusivelyfromMoroccoindirecttradingar-rangements,whilealsoutilisingtheheftyvolumesbeingshippedtoAlgerianportsfromSpainundera2012tenderawardedtoSpanishoilcompanyCepsaearlythisyear.

• WhileRomaniandemandhasdroppedamidpoliticalturmoilandprojectpaymentproblemsinthatcountry,regularshipmentsarestillbeingmadeintotheRomanianBlackSeaportsofConstantaandGalati,mainlyfromGreece.Aglobalbitumenshippingandtradingcompanyistakingone5,000tbitumencargoevery20daysintoConstanta,withrecentshipmentsmadeonboardtheFunNingWan.TheGalatiterminalishandling2,500-3,000timportcargoes.

• Aninternationaloiltradingfirmhasbeenincreasingitspresence




acrosstheMediterranean,makingfreshattemptstosellbitumencargoesintoTurkeyandCyprus.Itwasreportedtobeseekinga3,000tmid-SeptembercargoforshipmentintoLarnaca,Cyprus,asitemergedthatanotherfirm-aMediterraneantrader-hadsoldtwocombined3,000tcargoesofPen50/70and35/50gradebitumenintothesameportduringAugust.

• TheinternationaltradingcompanywasreportedtohavesoldatleastonecargointotheSeaofMarmaraportofAmbarli,Turkey,havingshippedpreviouscargoesintotheBlackSeaportofSamsunearlierthissummer.ThetankerIoliwasreportedtohavebeenchar-teredforarecentTurkey-boundshipmentbythetrader.

• ThecommercialviabilityofexportstoTurkeywasinquestionbeforesoledomesticproducerandsupplier,Tupras,sharplyraiseditspostedpriceson6September.ThehikestookPen50/70and70/100gradebitumenpricestoTL1,225/tex-refineryIzmit,TL1,207/tex-refineryIzmir,andTL1,252/tex-refineryKirikkaleandBatman.Thosevalues,averagingaround$680/t,comparedwithpublishedfobMediterraneanhigh-sulphurfueloilpricesaround$650/tonthesameday.

• SpotexportpricediscountstofobMediterraneanhigh-sulphurfueloilcargoquoteswidenedto$45-55/tforItalianexportvolumes,$20-25/tforGreekexportsand$45-50/tforSpanishflowsasthinregionaldemandforcesupplierstolowertheiraskingpriceforexportvolumes.Risingbunkerfuelcosts,linkedwithsteadilyrisingcrudeoilandfueloilprices,arealsotoblameforhigherfreightcosts.

Italy

• Domesticpricesremaindepressed,withproducersforcedtoabsorbrecentheftyincreasesincrudeandhigh-sulphurfueloilpricesinthefaceofpersistentlyweakdemandonanItalianmarkethithardbyrecession,governmentdebtandmassivespendingcuts.Supplierssaidrequirementsremainlacklustreinthemidstofthebitumenseason,withgovernmentagenciesunabletocommitfundstonewroadprojects.

• PricelevelsforstandardpenetrationgradesofbitumensoldincentralandnorthernItalywereassessedinthe€480-490/tex-refineryrange,inclusiveoflocaltaxes,whilesouthernItalypricesstayedabout€20/tabovethoselevels.MarketparticipantsexpectthatpricegaptowidenoverthenextfewmonthsasmoresouthernItalybitu-menproducingcapacityisclosedbecauseofstructuraloversupply.

• TotalErgsaiditsRomerefineryinsouthernItaly,whichproducesaround200,000t/yrofbitumen,wouldbecloseddownforeconomicreasonsattheendofSeptember.TherefineryclosurewillleavetheEnirefineryatTaranto–with280,000t/yrofbitumenproductioncapacity–astheonlymainlandItalianrefineryinthesouthofthecountry.ExxonMobilrunstheAugustarefineryinSicily,withabout600,000t/yrofbitumencapacity,althoughmuchofthatvolumeisgearedtoexportsales.TheUSmajorisexpectedtoseekbitumen

volumesfordeliveryintoitsNaplesstoragefacilityinabidtomeetanyshortfallthatmayariseinsouthernItalianrequirements.

• TheExxon-Mobil/Ergjointventure,Sarpom,announcedinlateJuneitsintentiontoclosedownthebitumenandsolventsunitsattheSarpomrefineryinTrecate,northernItaly,duringthecourseofthisyear.BitumenproductioncapacityatTrecateisestimatedataround300,000t/yr.ThebitumenclosuretherewillbefollowedbytheshutdownoftheentireAPIrefineryinFalconaraonthecentralItalianAdriaticcoast,withabitumenproductioncapacityof350,000-400,000t/yr,foratleastthefirstsixmonthsof2013.Theclosurecouldbeextendedforafurthersixmonths,dependingonthestateofproductsmarketdemandandrefineryeconomicsatthattime.

• TheTrecate,RomeandFalconarashutdownswilltogethertake850,000-900,000t/yrofbitumencapacityoutoftheItalianmarket,dramaticallycuttingdomesticoversupply.Italyisamajorexporterofsurplusbitumen,buttheweakstateoftheNorthAfricanmarketsincetheArabSpringturmoiloflastyear,coupledwithlogisticaldif-ficultiesincompetingforWestAfricanmarkets,haseatenintothoseexportvolumes.

West Africa

• AsteadyflowofimportswerereportedintotheNigerDeltaregionofNigeriainlateAugust/earlySeptember.Accordingtoship-pinginformation,thebitumentankerMTBiskrawasscheduledtodischarge4,500tofbitumenintotheRiversdistrictintheDeltaon5September,whiletheMarVictoriaandtheWCBarcaweretodis-chargeattheWarriterminal,alsointheNigerDelta,on7Septemberwith2,900tandjustunder8,000trespectively.Thechartereridenti-tieswerenotdisclosed,butthesupplierwaslikelytobealeadingglobalbitumentradingandshippingwithastrongshareoftheNige-rianmarket.Thoseshipmentsfolloweda3,000tcargoonboardtheSanBenjamino,nowundertimecharteredwithIvoryCoastexporterSMB,thatarrivedinWarrion29August.

• IvoryCoastbitumenexportsfromtheSMBrefineryinAbidjanduringAugustwereverymuchinlinewithJulyvolumes.Thatmeantmonthlyvolumesstayedat20,000tintotal,with10,000tofitsenttoAngola,3,000ttoGabon,3,000ttoNigeriaand4,000ttoGhanaineachofthosemonths.NomajorchangeisexpectedinSeptemberflows,withthepossibleexceptionofAngola-boundexports.AngolanimportrequirementsintotheTrafiguraterminalsatLuandaandLo-bitowerefairlystronginthebuild-uptoPresidentialelectionsinthecountryattheendofAugust,butnofreshrequestsforIvoryCoastbitumenexportsintoAngolawereyetreportedforSeptemberload-ingdates.Thatindicatedapossible,albeittemporarypost-electionslowdown.

• DespitestiffcompetitionfromEuropeanandoccasionalwesternhemisphereimportsintoWestAfrica,SMBfurtherraisedinexportpricepremiumtopublishedfobMediterraneanhigh-sulphurfueloilquotesto$55-65/t,whilefreightcostsfortypicaljourneystoIvory




Coast’sregionalneighboursremainedinthe$40-75/trange.DeepSpanishbitumenexportdiscountstothesamefueloilquotesmadeoneoftheSpanishoilrefinersespeciallycompetitiveforexportship-mentstoWestAfrica.

Egypt

• Domesticbitumendemandisshowingincrementalimprove-mentwiththeonsetoftheroadbuildingseason,butwithbothEGPCrefineriesnowbackupandrunningandconcentratingonsupplyingthelocalmarketthereisnoimmediatedangerofshortages.

• Consequently,thereislittleinthewayofimportorexportstoorfromthecountryandpricesremainstable.LocalvaluesarearoundEgyptianpounds3,550/t($580-585/t),whileexportnumbersreacharound$600/tonafobbasis.

East Africa

• Warmeranddrierweatherisheighteningbitumendemandslight-lyasthemonsoonseasondrawstoaclose,butitisnotyetenoughtodrivepricessignificantlyupwards.Importvalueshavenarrowedtoaround$620-650/t,althoughsomestillseeawiderrangeofaround$600-670/tcfrMombasaorDaresSalaam.

• OnetradersaidthatbitumendemandwithinIranhasbeenweak,whichhaskeptpricesdepressed,butthismaysoonchangewiththerecentincreaseincrudepricesandeastAfricanbuyinginterestsettorampup.

• On-goingconcernsregardingshippingcouldalsocreatetight-nessandsendpricesupwardsonceroadbuildingactivitybeginsinearnest,accordingtoseveraltraders.SeveralshippingcompanieshavewithdrawnoperationsfromBandarAbbasportinIranastheyareunabletopurchaseinsurancesinceEUsanctionsagainstthecountrywereimplementedon1Julythisyear.Consequently,fewervesselsarebringingmaterialfromIranandchargingmorethandoublewhattheywerelastyearbecauseofthelackofcover.Bylastestimate,freightcostshavegonefromaround$50/tto$130/tasaresult.

• KenyaandTanzaniausuallyreceivematerialfromSouthAfricanproducersalso,butwiththreeofthecountry’srefineriesscheduledtogodownformaintenanceduringthebusyseasonthissupplyrouteisalsolikelytobechokedoff.

• ThelatestGACmaritimesecurityreportforthefirstweekofSeptembersaidthatsubsidingmonsoonconditionsinthenextfew

weeksofthemonthwouldmean“weatherconditionswillbecomemorefavourableforpirateactivity.”

South Africa

• MostlocalrefinersincreasedtheirSeptemberlistpricesbyR250-350/tonthebackofhighercrudecosts,pricedinUSdollars,whichwasexacerbatedbyaweakerSouthAfricanrand.Onaverage,domesticpricesrosetoR5,900-6,000/t.BPandMasanaliftedtheirpricesbyR350/t,fromR5,810/ttoR6,160/t.Shell’snumberswentupbyR250/ttoR6,250/t,whileaR280/tincreasefromEngenbroughtitsvaluesuptoR5,690/t,allonanex-refinerybasis.

• ButChevron,whichhadbeenofferingthelowestpricesofallitscompetitorssinceMarchofthisyear,implementedasteep16pcin-creasefromR5,240/ttoR6,081/t.BuyerswereunsureofthereasonsforthisbuttheproducerwasmuchcheaperthanitsrivalsinAugustandrecentlyhaddifficultiesreachingcertainspecifications,althoughlatestreportssuggestedthishadnowbeenclearedup.

• Producerswerealsoencouragedtoraisepricesbyimprovingdemand.Whiletheroadbuildingseasonisyettokickintofullgearasseverethunderstormscontinuetobattersomepartsofthecoun-try,buyersarelookingtostockupforthebusyperiodwhenthreelocalrefinerieswillbeshuttingdownformaintenance.Butrefinershavereducedtheiroutputduringthisrelativelyquietperiod,sowhilethereisenoughtosatisfycurrentdemandthereisverylittleextraavailabletoputawayinstorage.

• DistributionofbitumensuppliesmayalsobeseverelydisruptedsoonasSouthAfricantransportworkerswillbedowningtoolsaftersalarytalkswithemployersbrokedownlastweekend.TheSouthAfricanTransportandAlliedWorkersUnion(SATAWU)isdemandinga9pcwageincrease,whiletheRoadFreightEmployers’Association(RFEA)proposesa7pcrise.SATAWUisconferringwithitsmemberswhilethefinaldetailsoftheindustrialactionarefinalised.Meanwhilerefinersandbuyersareunsurehowdebilitatingthestrikeactionwillbe,sayingitmaynotbetoomuchofaproblemifitonlylastsafewdaysbutcouldcauseseveredisruptionifitdragson.

Ethiopia

• Thegovernmentisinvitingbidsuntil2Octoberfortheconstruc-tionoftheHarar-By-PassProjectinHarartown,whichincludesthebuildingof20kmofasphaltroad.Theventureisexpectedtotake18monthsandcomeshotontheheelsoftheEthiopianRoadsAuthor-ity’sannouncementtobuild2,800kmofroadacross39projectsinthenewfinancialyear.




Africa and Asia bitumen pricesLocal currency/t $/t

Rack prices, fob (3-7 Sep) Low High Change Low High Change

Africa

South Africa (rand) 5,943 6,151 164 715 740 33

South Korea (won) 700,000 750,000 618 662 1

Mumbai, India (rupees) 34,923 37,423 1553 627 672 27

Mumbai, India — drums (rupees) 38,023 40,523 1553 682 727 26

Thailand (baht) 19,962 20,118 667 640 645 25

Indonesia (rupiah) 6,309,600 6,309,600 110766 660 660 10

Singapore ($S) 796 796 3 640 640 8

Singapore ex-refinery (to Malaysia) 758 771 -3 610 620 3

Japan (¥) 54,000 55,000 685 698 -2

Export cargo/drum prices, fob

Iran Nfc* Nfc* - 450 473 -9

Iran — drums Nfc* Nfc* - 510 533 -9

Bahrain (dinar) 217 217 1 575 575

Thailand (baht) 19,463 19,619 11 624 629 4

Singapore ($S) 786 792 -1 632 637 4

Singapore — drums 929 935 -2 747 752 4

Japan (¥) 47,668 48,062 2090 605 610 25

Taiwan ($) 18,499 18,648 452 620 625 18

South Korea (won) 696,670 702,334 15725 615 620 15

Cargo prices, cfr

West Africa Nfc* Nfc* - 770 795 13

China (yuan)

North coast 4,089 4,121 107 645 650 18

East central 4,121 4,482 66 650 707 11

South coast 4,153 4,356 66 655 687 11

North Vietnam — drums Nfc* Nfc* - 755 779 4

South Vietnam — drums Nfc* Nfc* - 755 769 4

*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 6-Sep Change 6-Sep Change

HSFO 180cst $/t 693.25 5.00 Singapore 640.88 7.28

HSFO 380cst $/t 677.75 5.00

Gasoil, high pour $/bl 131.80 -0.55

hhh

550

600

650

700

750

16 Dec 11 23 Mar 12 15 Jun 12 07 Sep 12

North China South China

North and South China cargo prices $/t

hhh

450

500

550

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650

700

16 Dec 11 23 Mar 12 15 Jun 12 07 Sep 12

Bahrain Iran

Bahrain cargo vs Iran cargo $/t




Asia and Middle East bitumen

Singapore

• Singaporebulkcargopricesareupby$4/tthisweekto$632-637/tfobasbuyinginterestinAsiagainmomentum.

• OneOctober-loadingcargoexchangedhandsthisweekslightlyovermid-$630s/tfobthisweek.

• OffersforOctober-loadingcargoesoutofSingaporearemostlylinedupatlow-mid$630s/tfob,accordingtobuyersandsellers.

• AtleasttworefinershaveconcludedtheirsalesforOctober-load-ingcargoes.Anotherrefinerissueaselltenderforone4,000-5,000tcargofordeliveryover15-31October.ThetenderclosesThursday,13September.

• Singapore’sbulkcargopricesareassessedat$632-637/tfob,takingintoaccountoftheoffersandthedealconcludedinthespotmarketthisweek.DemandforSingapore-origincargoesremainsdrivenlargelybyIndonesia.ElsewhereinAsia,strongbuyinginter-estfromMalaysia,Vietnam,AustraliaandevenThailandaresettokeepthespotmarketinatight-suppliedsituation.ButdemandinthePhilippinesremainsweak.

• SingaporedrumcargoesremainstrongonsteadydemandfromIndonesiaandtightavails.Spotpricesareassessedatouchhigherby$4/tto$747-752/tfob.

• Singapore’srackpriceisupto$640/tthisweek,comparedwith$630-635/taweekago.

• TheSingaporetanktruckpriceisupby$3/tto$610-620/tasMalaysiansupplierslooktoSingaporeformoresupplies.

• ButoneleadingrefinerisheardtobecuttingbackonitstanktruckvolumesduetotightavailsforSeptember.AnotherSingapore

supplierhasappointedfourMalaysiandistributorstooverseeitssalesandwillstopsellingdirectlytoitscustomers,marketpartici-pantswhohavereceivedtheemailfromtheSingaporesuppliersaid.Butthemovehasbeenwidelyexpectedbymarketparticipantsandislikelytogivethefourdownstreamdistributorsmoreflexibilityinpricing,marketparticipantsadded.

• SingaporeHSFOpricesroseonpapergains.Theprompt180/380cstviscosityspreadnarrowedby$0.25/tto$15.25/t.TheOctoberfueloilmarginagainstDubaicrudewaslargelyunchangedatadiscountof$4.85/bl.Fortheweekended5September,Singapore’sonshorestocksofresidualfuelsroseby1.13mnbltoa4-weekhighof18.45mnbl,butstocksare12.2pclowerthanthisperiodlastyear.Singaporeimported871,322toffueloilwith39pcfromRussiaand21pcfromVenezuela.Around691,671toffueloilwasexportedwith23pcheadedtoKoreaand18pcheadedtoChina.Thepromptmonthtimespreadnarrowedheldsteady$5.50/tinbackwardationwhiletheOctober/Novem-bertimespreadwidenedby$0.25/tto$3.75/tinbackwardation.Thepremiumfor0.3pcLSFOwasheardtobearound$110/toverMops180cstonfobKoreabasisascomparedtoaround$100/tamonthago.DemandforLSFOmaypickupfromend-September,traderssaid.

Malaysia

• Domesticsalesfailedtoimprovethisweek,contrarytoearlierex-pectations.LacklustresaleswereattributedtoanotherpublicholidayonSeptember16th,leadingtodelaysinthestartofnewroads,localsourcessaid.However,mostmarketparticipantsremainupbeataboutnewprojectsstartingoverthenewfewweeks.

• Dealersarealsowithholdingsalesinanticipationofhigherpricesinthenearterm.Thecountry’sleadingsupplierisheardtobelimitingsalesvolumesduetoacutbackinrefineryproduction.ThesupplierhasboughttwoimportedcargoesfordeliveryintoEastMalaysiaduetoacutbackinproduction.

hhh

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16 Dec 11 23 Mar 12 15 Jun 12 07 Sep 12

Singapore cargo HSFO alternative

Singapore fob - HSFO alternative Singapore $/t

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Singapore cargo Japan cargo

Singapore cargo vs Japan cargo $/t




• Thecountry’sotherleadingsupplierhasincreaseditsmarketshareasaresultbutmaycutbackonsalestomoveadditionalvolumesintoThailandduetostrongdemand.

Thailand

• BulkpricesinThailandareupby$4/tto$624-629/tfob.

• Spotpricesrosethisweekonplansbyrefinerstocutbackonexportvolumesduetostrongdomesticdemandandhighrackprices.

Prices of China main refineries 03 - 07 Sep 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 4,750 4,700 50 749 741

AH-100, AH-140, AH-180 4,700 4,650 50 741 733

Sinopec Tahe 90-A 4,700 4,650 50 741 733

90-B 4,700 4,650 50 741 733

Gansu Petrochina Lanzhou AH-90 No sale - No sale - - -Shannxi Sinopec Xi’an AH-90 4,950 4,900 781 773

Northeast Liaoning Petrochina Liaohe AH-70, AH-90, AH-110, AH-100, AH-140 5,200 5,050 820 797

Panjin Northern AH-90, AH-110, AH-100, AH-140 5,200 5,050 820 797

North Hebei Petrochina Qinhuangdao AH-70, AH-90 5,200 5,050 820 797

Central Henan Sinopec Luoyang AH-90 4,950 4,900 781 773

East Shandong CNOOC asphalt AH-70, AH-90 5,250 5,200 828 820

Sinopec Qilu 70 -A 5,150 5,100 812 804

90 -A, 70-B 5,050 5,050 797 797

90-B 5,000 5,000 789 789

Sinopec Jinan AH-100 No sale - No sale - - -

Zhejiang Sinopec Zhenhai 70-A, 90-A 5,100 5,050 50 804 797

70-B, 90-B 5,050 5,000 50 797 789

CNOOC Daxie AH-70, AH-90 No sale - No sale - - -

Petrochina Wenzhou AH-70, AH-90 5,050 4,900 797 773

Shanghai Sinopec Shanghai AH-70 5,050 4,950 797 781

Jiangsu CNOOC Taizhou AH-70, AH-90 5,300 5,100 836 804

Sinopec Jinling 70-A, 90-A 5,050 4,950 797 781

South Guangdong Sinopec Maoming 70-A, 90-A 5,100 4,950 50 804 781

Sinopec Guangzhou 70-A, 90-A 5,050 4,950 50 797 781

Petrochina Gaofu AH-70, AH-90 5,000 4,950 100 789 781

Southwest Sichuan CNOOC Sichuan AH-70, AH-90 5,500 50 5,500 50 868 868

Source: China refiners and bitumen market participants

Australia import cargo prices $/tLow High Change

Thailand fob (Class 170) 635 640 5Thailand fob (Class 320) 635 640 5Singapore fob (Class 170) 642 647 7Singapore fob (Class 320) 642 647 7

• Onerefinerhascutitsbitumenproductionfrom1,200/tperdaytocloseto600-800/tperdaytomaximisefueloiloutput.Thesamerefinerhasalsocutbackonexportsandwillsellallofitsvolumesinthedomesticmarket.

• AnotherThairefinerislikelytowrapitsdiscussionstoselltwoOctober-loadingcargoesintoAustralianextweek.

• Thairefinershaveraisedthecountry’srackpriceto$640-645/tinSeptember,comparedwith$615-620/tinAugust.

Indonesia

• BuyinginterestinIndonesiaremainsstrongthisweek.

• SupplierscontinuetoseekOctober-loadingcargoesandhavereceivedoffersfromSingaporeataround$635/tfob.




Bitumen freight rates 03 - 07 Sep $/t

Route Low High Change from last week (+/-)

Singapore - South China 48.00 60.00

Singapore - East China 66.00 73.00 -0.50

Thailand - South China 48.00 60.00

Thailand - East China 66.00 73.00 -0.50

Taiwan - East China/South China 30.00 37.00

South Korea - East China 29.00 36.00

Note: East China and South China both refer to coastal ports in the region

Source: Bitumen market participants

• Witha$10/triseinthecountry’srackprice,manyareoptimisticthattheywillpassontheadditionalimportcoststodownstreamusers.

• Indonesia’srackpriceisupby$10/tto660/tinSeptember.

Vietnam

• VietnamesesuppliersarecontinuingtolookforOctobercargoes.

• GiventhehighfobpricesinSingapore,suppliersarelookingtoChinaandTaiwantomeettheirrequirements.

• AtleasttwoOctober-loadingcargoesfromTaiwanaredestinedforVietnam.

• TherackpriceinVietnamisupby$10/tto$650/tinSeptember.

South Korea

• SouthKorea’sspotpricesjumpby$15/tto$615-620/tfobthisweekonstrongbunkervaluesinthedomesticmarket.

• SpotpricesarealsoassessedhigherinlinewithgainsinTaiwan.

• OneleadingrefinerinSouthKoreahascommittedthebulkofitsOctobervolumestoitstermcustomers.

Japan

• Importsremainmostlymetthroughtermsuppliesfromone-leadingSouthKoreanrefiner.

• Forexports,oneJapaneserefinerisheardtohavesoldatotaloftwoSeptember-loadingcargoes.Butspotpricesareassessednotionallyhigherat$605-610/tfobintandemwiththegainsinSouthKoreaandTaiwan.

Australia

• SpotpricesforC-specscargoesareupassuppliersraisedtheiroffersowingtostrongdemandinAsia.

• Demandisexpectedtobestronggivenwarmweathercondi-tions,withimportersindicatingthattheyaretobuyonespotcargoeachbeginningOctoberthroughtoDecember.

• Spotoffersareupto$635-640/tfobforC-specscargoesoutofThailandand$642-647/tfoboutofSingapore.

Taiwan

• Spotpricesareupby$18/tto$$620-625/tfobthisweek.

• Thecountry’sprivately-ownedsuppliersoldatotalthreetermOctober-loadingspotcargoesof4,000teachat$620-625/t.Thesup-plieralsoissuedaseparatespottenderforthesaleofoneOctober-loadingcargo.Butthesuppliercancelledthetendereventuallyandwillplacethecargointhedomesticmarketinstead,owingtostrongdemand.

China

• ImportsintoChinaareupby$18/tto645-650/tcfrinnorthernChina,by$11/tto650-707/tcfrineasternChina,andby$11/tto$655-687/tcfrinsouthernChina.

• Sentimentremainsstronginthedomesticmarketthisweek,fol-lowinganother50-100yuan/tpricehikebyseveralChineserefiner-ies.SeveralprojectshavebegunineasternandnorthernChinawhiledemandinsouthernChinaisstillweakduetorainyweatherconditions.

• ButrefineriesinsouthernChinahavealsoraisedpricesduetobuyingsupportfromsouthwestChina.Marketparticipantsareconfidentthatsteadybuyingwillpersistforanothertwomonthsascontractorsaimtocompletetheirprojectsbeforecoldweatherconditionssetin.

• Moredetailsemergedinthespotmarketontheexportsalebythecountry’sstate-controlledrefiner.TheChinesestate-controlledrefinerisbelievedtohavesoldthreeSeptembercargoesallat$610/ttotaling8,000ttoVietnam,insteadofonlyonecargoinprevious1-2weeks,accordingtomarketsources.

• SouthKorea’sGSCaltexisbelievedtohavesoldatotalthreeSeptembercargoesof5,000teachfordeliveryintoeasternornorth-ernChina.

India

• India’sdomesticpricesareupby2,053rupees/tbeginning1September.Followingtherevision,thePen80/100drumandbulkpricesareat39,723rupees/tand36,623rupees/trespectively.ThePen60/70drumandbulkcargoesareat40,523rupees/tand37,423rupees/trespectively.ThePen30/40drumandbulkcargoesareat43,013rupees/tand36,623rupees/trespectively.




• Discountshavewidenedto2,500rupees/t,accordingtomarketparticipants.

Bahrain

• Bulkpricesareunchangedat$575/tthisweek.Thestate-ownedsupplierhassoldthreeSeptembercargoesranging1,000-1,500t.ThecompanyhassoldallitsSeptembercargoesandmaystartsell-ingOctobercargoesfromnextweek.

Iran

Iran export market

• IranbitumenpricesfobBandarAbbasdecreasedby$7-10to$450-473/tthisweekduetoUSDexchangeratestrengtheningcom-paredtoIranianRialsanda$10dropinthebitumenpriceontheIranMercantileexchange(IME)to$640/tthisweek.However,somepricesdecreasedevenfurthertothe$435-445/trange.PasargadOilcontinuedtohavenosupplythisweek.

• CorusEnergyDevelopmentCompanydecreasedpricesby$10/tandsold3,800tinbulkat$640/tontheIMEfobBandarAbbasthisweek.

• Exchangeratewasat$1=22,300-21,700(Rials)thisweekintheopenmarket.Thus,offeredpriceforbulkbitumenfobBandarAbbaswasabout$352-362/tthisweek,exclusiveofIMEchargesandfees.TradersofferedPen60/70bitumenfobBandarAbbasat$435-445/tforcashpaymentthisweek.ThehighendofthefobBandarAbbasrangewasat$450-473.

• PasargadOilCompanyhadnobitumendrumsupplyeither.JeyOilsuppliedbitumenthisweekandthedrumpremiumex-Esfahanwas$110-120/tandwasnegotiableonthesettlementday.Resellersandtraderspriceswereofferedat$510-533/tthisweek.AtraderofferednewdrumcargoesfobBandarAbbasat$445/tthisweek.

• JeyOilCompanykeptpricesunchangedandofferedPen60/70and85/100forexport(justoncashinadvancepayment)thisweekat$605/tthisweekandsold3,320toncashinadvancepayment,withdeliverytimeofupto30days.

• PasargadOilwasdeliveringcargoesonthebasisofprevioussales.

• NeginFakhrAzerbaijankeptpricesunchangedat$630/tandsettled2,000tofPen60/70inbulkex-Jolfaat$630/tthisweek.

• AkamBitumenCompanymarkedupby$10/tandsold5,000ton$620/tthisweek.

• IMEcostsincludedbrokeragefeeandIMEcommissionof$1.46/tforbuyersthisweekonsettledfobBandarAbbasprice.

Report of Iran domestic sale for 1-6 September 2012Bitumen Grade Volume (MT) Settled price (Rials/Kg)

Pen 60/70 28,028 6,920-7,280

Pen 85/100 7,977 6,920

MC-250 1,239 8,800-8,980

Pen100/120 No supply -

Emulsions Rapid

No supply-

Slow -

Exchange rate 1$ = 12,260Rials, t= Metric tone

Report of Iran export sale for 1-6 September 2012

Bitumen Grade Producer

Settled price on bitumen

($/t)

Pack-ing

Volume (MT) Destination

Pen 60/70

Pasargad Oil Co. No supply

Bulk

-

Export by ship from Bandar Abbas portDrum

Bulk Export by ship from Bushehr port

Bulk Export By ship from Abadan port

BulkExport to neighbor-ing countries or move to ports for export by ship ,sup-ply ex. Tehran

Drum

Bulk

Export to neighbor-ing countries or move to ports for export by ship, sup-ply ex. Arak

Bulk

Export to neighbor-ing countries by truck, supply ex. Tabriz

Bulk

Export to neighbor-ing countries or move to ports for export by ship, sup-ply ex. Shiraz

Corus Energy De-velopment Co. 640 Bulk 3,800 Export by ship from

Bandar Abbas portJey Oil Refining Co. 605 Bulk 2,400

Export by ship and truck

Negin Fakhr Azer-baijan 630 Bulk 2,000

Bam Gum Ayegh No supply Bulk -East Bitumen Company No supply Bulk -

IsoGum Tabriz 640 Bulk 500Bamgostar zarin shargh 590 Bulk 90

Akam Bitumen Co. 620 Bulk 5,000

Azar Bam Co. 635 Bulk 800

Pen 85/100

Pasargad Oil Co. No SupplyBulk - Export by ship from

Bandar Abbas port

Bulk - Export to neighbor-ing countries

Jey Oil Refining Co. 605 Bulk 920 Export by ship and truckAzar Bam Co. 635 Bulk 250

MC-250 Jey Oil Refining Co. 785 Bulk 0 -Exchange rate 1$ = 12,260 Rials, t= Metric tone




• Traders’pricesoffered$435-445/tinbulkfobBandarAbbas.Also,traderssupplieddrumscargosat$510-520/tfobBandarAb-basthisweek.

• PasargadOilandsomeofsmallproducersdidn’tsupplyanybitumeninIMEthisweekandexportvolumeswere15,760tfordiffer-entproductsinIMEthisweek.

• Localbitumenpriceshaveincreasedbyproducersthisweekfollowingtheincreaseinvacuumbottom(VB)pricesinthepreviousweek.

• JeyOilsettledPen60/70and85/100at6,920(Rials/kg)thisweek.

• Also,PasargadOilsettledPen60/70ex-Tehranatdifferentpric-es.Theweightedaverageofpriceswas6,973(Rials/kg)ontheIMEthisweek,andtheysettledPen60/70at7,280(Rials/kg)ex-Abadan,andBandarAbbasandShirazfactoriesthisweek.

• Also,PasargadOilsettledPen60/70and85/100ex-Arakfactoryat6,920(Rials/kg)thisweekandnobitumenwassuppliedex-Tabrizbythecompany.

• BamGostarZarinSharghhassold280tMC-250at8,800(Rials/kg)thisweek.Otherproducersdidn’tparticipateontheIMEthisweek.

• MC-250pricesincreased,withJeyOilincreasingpricesandsell-ingat8,800-8,980(Rials/kg)ex-Esfahanthisweek.ButPasargadOildidn’tsupplyanyMC-250ontheIME.

• Marketsentimentwasslowbecauseofnewhigherpricesandproducerssold37,244tofdifferentproductsontheIMEthisweek,a21pcdecreasecomparedtothepreviousweek.

• Producerssupplied68,916tofdifferentproductsforlocalcustom-ersontheIMEand40,358tindemandwasregisteredontheIME.

• NationalIranianOilCompany(NIOC)suppliedVBfeedfromdifferentrefineriesandtheirpriceswerekeptunchangedthisweek.Theysold18,000tex-Tabrizrefineryat5,745(Rials/kg)and1,486tex-Tehranrefinery.Thecompanysettledon6,032(Rials/kg)with12,000tindemandregisteredfromtheTehranrefineryandShirazandBandarAbbasrefineriessold16,000tat6,048(Rials/kg).

• NoVBfeedwassuppliedex-Esfahanrefinerythisweek.




Asphalt and bitumen industry briefs

• Pemex splits asphalt pricing: Mexico'sstate-ownedoilcom-panyPemexhasstartedtosellasphaltatrefinery-specificpricesinplaceofthepreviouscountrywidepricing.Thesurpriserevisionispartofanefforttoincentivizeasphalt

productionandincreaseitscompetitivenessagainstUSimports,distributorssay.PemexoperatesfiverefineriesinMexicothatcanproduceas-

phalt:Cadereyta,Tula,Salamanca,SalinaCruzandMadero.EachrefineryhasanewpostedpriceforgradesAC-20andAC-5.CadereytahasthehighestAC-20pricesat$10,033.25Ps/met-

ricton($762.02/t).ThepricerepresentsasmalldropagainstthecountrywideAugustpostingof$10,045.47Ps/t.Pricesthisyearhavebeentrendingdown,inlinewithUSGulfcoastsupply.PricesarecheapestattheTularefineryjustnorthofMexicoCityat$9,414.58Ps/t.Thenewpricesarehighenoughtopresentexportopportunities

forUSrailandbargesuppliers,butareinclusiveofa16pcvalueaddedtax,whichmustbedeductedtogaugeamoreaccuratearbitragewindow.Lesstaxes,Cadereytapricesarenear$570/shorttoncompared

withfobUSGulfcoastbargepricesof$478-485/stand$420-440/stforfobRockyMountainrailsupply,accordingtoArgusassessments.AttheSalamancarefineryincentralMexico,thecountry'slargest

asphalt-producingrefinerybyvolume,AC-20ispostedat$9,752.01Ps/t(or$553.72/stlesstaxes)forSeptember.MexicoisatopdestinationforUSasphaltandroadexports,

Crude oil

Prices Americas $/bl 6-Sep ChangeWTI Cushing 95.53 0.91WTI Midland 94.46 1.21WTS Midland 92.18 1.31ANS USWC 113.03 1.46Mixed Sweet (MSW) 99.63 8.78Lloyd Blend (pipeline) 84.73 6.13Western Canadian Select (WCS) 84.98 6.13WCS del Chicago 88.89 6.07Maya del USGC 101.10 1.47

Prices international $/bl Basis 6-Sep ChangeTapis 118.18 1.80North Sea Dated 114.48 1.70Dubai 111.93 1.62Arab Heavy, fob Ras Tanura Differential to Asia Oman/Dubai -1.90 -0.40 Differential to Europe Ice Bwave -6.40 -2.70 Differential to US ASCI -4.10 -0.60Kuwait fob Differential to Asia Oman/Dubai -0.50 Urals NWE 112.98 1.85Urals Med 113.73 1.25

14

17

20

23

26

29

Jul-11 Oct-11 Jan-12 Apr-12 Jul-12

mn

bl

Source: EIA

Weekly US ending stocks of asphalt and road oil

hhh

0

250

500

750

1,000

16 Dec 11 23 Mar 12 15 Jun 12 07 Sep 12

Arab Heavy Singapore cargo

Arab Heavy - Singapore cargo $/t

hh hh

-22

-20

-18

-16

-14

$/bl

24-Jul 07-Aug 23-Aug 07-Sep

WTI less Bakken

WTI-Bakken $/bl

Note to subscribers: Following a period of consultation with the industry and given the realignment of crude oil trade flows over the past few months, Argus is terminating its Midcontinent delivered equivalent assessment for WCS on 28 September 2012. This reference quote is calculated by adding transportation costs to the grade’s fob assessment. But due to the emergence of new spot markets in other regions for this grade, its calculated Midcontinent delivered equivalent quote has diminished relevance. If you have any comments or questions please contact Nasreen Tasker at (203) 261-667 or [email protected].




secondonlytoCanada.Mexicopurchased1.5mnblofasphaltandroadoillastyearcomparedwithCanada's4.6mnbl.

Oil industry briefs

• Oil rises in hurricanes aftermath:Oilmarketsrose,buoyedbytheaftermathofHurricaneIsaac,fallinginventoriesandgreateroptimismovereconomicrecoverythatcouldboostoildemand.AtlanticbasinbenchmarkNorthSeaDatedroseby$1.70/blto

$114.48/blintheweekto6September.WTIgained91¢/blto$95.53/bl,whiletheASCIindex—avolume-weightedaverageofUSdeep-watersourcrudedeals—alsoroseby91¢/blto$108.25/bl.UScrudeproductionwascomingbackonstreamafter1.3mnb/d

wasshutinaheadofHurricaneIsaac,whichfirstmadelandfallon28August.Butnearly600,000b/dofUSGulfoutputremainedshutinon7September.UScrudestocksfellby7.4mnblandrefineryutilisationwasdown

bymorethan5percentagepointsto86pcofcapacityintheweekto31August,reflectingGulfcoastrefinersoperatingatjust82pcofcapacity.Lowerrefineryrunsaretighteningproductmarkets.Europeandieselmarketswillhavetoensuresupplyduring

theautumnrefinerymaintenanceseasonwithoutameaningfulinventorycushion,becausetheforwardstructureofthemarkethasmadeitunprofitabletostoreproductandsellitforward.Animminentshifttointermediatewinterqualitieswithmoreexactingcoldpropertieswilladdtocosts.Theswitchtocheaperwinter-gradegasolineinEuropeandtheUSoverthenextmonthshouldcutintothepremiumthatpromptgasolineiscommandingtolaterdeliveries.Buttheimmediatemarketisstillstrugglingtoovercomethe

lossescausedbyHurricaneIsaacandtheshutdownofVenezuela’s635,000b/dAmuayrefineryfollowingalethalexplosion.Therefineryisnowrunningatreducedcapacity,andthishasfreedupVenezue-lancrudestomovetotheUSGulfcoastwhilealsoattractingproductimportstoVenezuela.TheEuropeanCentralBanksaysitwillinterveneinthebond

markettodealwiththeeurozonecrisis.Itistooearlytosaywhetherthiswillbeeffective,andwhetheritwillhaveanimpactonEurope’smoribundoildemandgrowth.ButNorthSeaoilpricessitcomfort-ablyabove$100/blagainstabackdropofdouble-diprecessionsin

Europe,slowingChinesegrowthandasluggishUSrecovery.Anygenuineeconomicrecoverymayprovokepricerisesreminiscentof2008.

• Amuay at full ops in one week –refinerymanager:The640,000b/dAmuayrefineryownedbyVenezuela'sstate-controlledoilcompanyPdVwillbe“completelyoperationalinaweek,”thefacil-ity'stopmanagersaidlateyesterday.JesusLuongo,generalmanagerofthe940,000b/dCRPPara-

guanarefiningcomplexthatincludestheAmuayrefineryandthe300,000b/dCardonrefinery,saidthatAmuay'sflexicokerandfluidcatalyticcracker(FCC)willberestartedthisweekend.TheflexicokerandFCCrestartprocesswilltakeanotherfouror

fivedaysfromthatpointbeforetheyarebothfullyoperationalagain,hesaid.Amuaysufferedamajorexplosionon25Augustthatkilledat

least42people.

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 © 2012 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 whatsoever without the prior written consent of the publisher.

Trademark noticeARGUS, ARGUS MEDIA, the ARGUS logo, ARGUS ASPHALT REPORT, other ARGUS publication titles and ARGUS index names are trademarks of Argus Media Ltd.Visit www.argusmedia.com/trademarks for more information.

Publisher: Adrian Binks Chief operating officer: Neil BradfordCEO Americas:Euan CraikGlobal compliance officer:Jeffrey AmosCommercial manager: Karen JohnsonEditor in chief: Ian BourneManaging editor: Jim KennettEditor: Nasreen Tasker Tel: +1 203 261 [email protected]

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Argus global asphalt/bitumen conferences:

Asian Bitumen:Asia growth and impact of changing Middle East supplies

Sentosa, Singapore — 10-12 October, 2012

Americas Asphalt SummitHouston, Texas — March 2013

Europe/Africa BitumenNice, France — 12-13 June, 2013

illuminating the markets

Gain valuable insights into the major issues driving global and Asian bitumen markets, including:

Global bitumen demand picture for 2012 and what regional shi�s mean for international trade of bitumen and bitumen shipping

Impact of sanctions on availability and pricing of Iranian bitumen cargoes and drums, and how this impacts Bahraini exports

New bitumen import markets Australia and Japan and their role in regional trade

Eect of declining Chinese bitumen domestic demand and imports, and India’s budgetary constraints, on demand

Asian re�ning outlook and the impact on the bottom of the barrel

Piracy and how it aects bitumen shipping patterns, costs and bitumen availability

Petroleum

Gold Sponsor

Con�rmed Speakers

Nasreen TaskerGlobal Editor - Argus Asphalt ReportArgus Media

Ismail Abdul HamidDirectorInternational Marketing DepartmentTipco Asphalt

Wouter De Vries LentschCharteringIver Ships

Indra A. MaizirSpecialities Application AdvisorPT. Shell Indonesia

Ali FarahmandManaging DirectorBinas Baya Energy

Azeem RemtullaGeneral ManagerSAMI Bitumen Technologies

Vivek DwivediDirector – Shipping & LogisticsTipco Asphalt

and more…

Argus Asian Bitumen 201210-12 October 2012Shangri-La’s Rasa Sentosa Resort, Singaporewww. argusmedia.com/asian-bitumen-2012

Asia-Paci�c growth and impact of changing Middle East supplies

Cocktail reception at SkyLo� Enjoy the high life, set above the wind tunnel at iFly Singapore, the world’s largest indoor skydiving wind tunnel. Perched high above Siloso beach, you will be able to enjoy �reworks and light displays at night.

Silver Sponsors

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11.00 – 17.00 Golf TournamentWe are anticipating a fun and well-attended event where delegates and speakers can network, play golf and enjoy a day out of the o�ce

17.00 – 19.00Welcome Reception

08.30 – 09.00Registration and Co ee

09.00 – 09.05Chairperson’s Welcome RemarksNasreen Tasker, Global Editor - Argus Asphalt Report, Argus

Session OneAsian Re�ning Updates and the Impact on Bitumen

09.05 – 09.30Overview of the Crude Oil Markets and the Asian Re�ning Sector

09.30 – 10.00Asian Economic Outlook and the Outlook for Construction Activity

10.00 – 10.20Trade Balance in Fuel Oil and what it means for Bitumen

10.20 – 10.30Questions and Answers

11.00 – 11.30: Morning Co�ee

Session TwoInsights in Supply and Demand Balances of Major Bitumen Hubs in Asia

10.50 – 11.20 Updates on Asian Bitumen Supply and Demand Balance

11.20 – 11.50 Growth and Demand in the Chinese Bitumen Market

11.50 – 12.10 Indian Bitumen Market - Essar’s Perspectives

12.10 – 12.30 Understanding the Relationship between India’s Economic Growth and its Bitumen Demand

12.30 – 12.35 Questions and Answers

12.35 – 13.40: Networking Lunch

Session ThreeKey insights into Middle East Bitumen Markets

13.40 – 14.10 Implications of Middle East Supplies on Asia-Paci�c

14.10 – 14.30Insights into the Iran Bitumen Market

14.30 – 15.10Special “Speed Networking” SessionBring plenty of your business cards. You will have the opportunity to meet almost every participant in this networking session

15.10 – 15.45A�ernoon Refreshments

Session FourDevelopment of Bitumen Demand in Southeast Asia

15.45 – 16.15Role of Thailand in Asia’s Bitumen Trade

16.15 – 16.45Infrastructure Growth in Myanmar and the Potential Demand for Bitumen

16.45 – 17.00Philippines - What will be the Impact of the Government Stimulus Package?

17.00 – 17.10 Questions and Answers followed by Chairperson’s closing remarks

17.10 – 18.30: Cocktail Reception at SkyLo� Sentosa

Day 1: 10 October 2012


SkyLo� Sentosa


Shangri-La’s Rasa Sentosa Resort, Singaporeargusmedia.com/asian-bitumen-2012

9.00 – 9.05 Chairperson’s Welcome Back RemarksNasreen Tasker, Global Editor - Argus Asphalt Report, Argus

9.05 – 09.40Bitumen Demand and Pricing

Session FiveDeveloped Nations and their involvement in Regional Trade

09.40 – 10.30Australia’s Bitumen Outlook

10.30 – 11.00Northeast Asia — A New Look at Countries’ Traditional Roles as Net Exporters


11.05 – 11.30: Morning Refreshments

Session SixA Road Builder’s Perspective and New Technological Trends

11.30 – 12.00Conserving Resources and Promoting Environmental Stewardship through the Use of Recycled Bitumen

12.00 – 12.30Bene�t of Using Warm Mix in Road Paving


12.35 - 13.30: Networking Lunch

Session SevenRisk Management and Shipping

13.30 – 14.00Opportunities for Hedging in the Bitumen Market

14.00 – 15.00Europe and Asian Shipping Patterns and the Impact of Piracy on Bitumen Trade

15.00 – 15.40Argus Bitumen Forum — Issues Impacting the Current Market and the Future of the IndustryModerator: Nasreen Tasker, Global Editor - Argus Asphalt Report, Argus

Updates on Middle East bitumen pricing Traders’ perspectives on the impact of credit tightening Buyers’ perspectives of bitumenImpact of large-size tankers on Asian spot trade - Are Asian

re�ners keen to receive large-size tankers?

15.40 – 15.45 Chairman’s Closing RemarksNasreen Tasker, Global Editor - Argus Asphalt Report, Argus

15.45 End of Conference


Shangri-La’s Rasa Sentosa Resort Singapore

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