A key Malaysian refiner raised its listed bitumen prices in Malacca state and Prai in Penang state on 7 March in line with a spike in crude and high-sulphur fuel oil (HSFO) prices, although domestic demand remains weak.
Local prices at Malacca rose to 2,300 ringgit/t ($549.89/t) ex-Malacca, up from 2,080-2,130 ringgit/t ex-Malacca last week, in line with the rally in crude futures and HSFO prices. Prices at Prai increased to 2,350 ringgit/t ex-Prai, market participants told Argus.
Demand in Malaysia continued to be soft, but there was some consumption in the northern region such as in Perak state and Penang because of some construction activities. Political uncertainties in Johor have weighed on consumption in the state, leading to a demand slowdown in recent weeks.
Domestic supply and availability of stocks from Singapore are likely to be tight because of reduced production in the country in March and April.
Argus-assessed truck prices from Singapore were at $500-515/t ex-refinery for the week ending 4 March. Argus assessed ABX 1 fob Singapore bitumen prices for the same week at $510/t fob Singapore, up by $42.50/t from the previous week.
