UK-based Prax has ceased bitumen supply from its joint-venture Natref refinery in Sasolburg, South Africa, after selling off its remaining stock ahead of a planned maintenance shutdown.
Prax, which owns 36.4pc of the 107,000 b/d refinery alongside Sasol with 63.3pc, told customers in late June that it would no longer have bitumen to sell once inventories were depleted. Market participants said the company confirmed in early July that all volumes had been sold.
The refinery began a partial maintenance shutdown on 14 July, scheduled to run until 8 October. Both shareholders had previously announced that bitumen production would end in September, but the maintenance has brought forward Prax's exit from the market.
Sasol continues to supply bitumen by truck to regular contract customers, but availability is limited, according to buyers. Some buyers reported difficulty securing pen 70/100 bitumen, a key grade used in South African road construction.
The halt in bitumen production is part of a broader plan to switch Natref's crude slate to sweeter grades, aimed at maximising output of light and middle distillates. This shift will also reduce production of other heavy products, including high-sulphur fuel oil (HSFO), market participants said.
Natref was the last refinery in South Africa producing bitumen. Its exit from the market means the country will now rely entirely on imports to meet domestic demand.
Prax did not respond to a request for comment.
The halt comes as Prax faces financial difficulties in the UK, where its Lindsey refinery is under the control of a court-appointed receiver.
