London, 22 May (Argus)
France
Bitumen demand moved
up a gear following the Easter holidays in mid-April and the bitumen season was
well underway.
The tightness in bitumen availability seen in March and the first half of April when Total's 160,000 b/d La Mede refinery on the French Mediterranean coast was closed for a full maintenance shutdown, had now disappeared.
There was optimism amongst road contractors regarding the level of road paving activity this year and early indications were that bitumen demand would be a couple of percentage points higher than last year.
Bitumen suppliers increased prices by €10-20/t ($13-26/t) at the beginning of this month to around €290-300/t ($370-383/t) delivered in the south of the country and €285-295/t ($364-376/t) delivered in the north of the country. Prices in the central region were assessed at €285-295/t ($364-376/t) delivered.
Greece
Road paving had
improved after a slow start to the bitumen season and good bitumen demand was
anticipated particularly in the north of the country and in Macedonia, Greece's northern neighbour, where several road projects were underway.
This year was expected to see an increase in bitumen demand, partly due to local elections to be held in October. Demand last year was some 40pc down on 2004, when the Athens' Olympic Games were held.
Domestic bitumen prices were pegged at around $330/t (€259/t) in the north of the country and $326/t (€256/t) in the south. The prices are based on premiums to the Mediterranean high sulphur fuel oil price quotation of $31/t (€24/t) in the north of the country and $27/t (€21/t) in the south.
Italy (exports)
Spot bitumen exports are suspended while the bitumen unit at the 84,000 b/d Taranto refinery undergoes scheduled maintenance. Term exports, which are being supplied
out of Livorno refinery, have been unaffected. The Taranto refinery was
scheduled to resume production on or around 24 May.
In the absence of spot trade, the export premium to the published high quotations for high sulphur fuel oil cargoes fob west Mediterranean was assessed in the range $3-5/t. This would currently equate to a fixed export price of $301-304/t (€236-238/t), based on the Argus Mediterranean fuel oil quotation.
Spain
Demand for bitumen exports was reported to be in line with normal levels for
the time of year. Buying was seen into Tunisia and Algeria in north Africa, Cyprus and northwest Europe.
The export premium to the published high quotations for high sulphur fuel oil cargoes fob west Mediterranean was reported to be around $5/t. This would currently equate to a fixed export price of $303-304/t (€237-238/t), based on the Argus Mediterranean fuel oil quotation.
Domestic bitumen prices averaged €305-325/t ($389-415/t) delivered, netting back to a price ex works of some €275-295/t ($351-376/t) fob.
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