Domestic bitumen truck prices in France are at their highest levels since 2022, as refinery outages and production issues tighten supply and keep the market elevated.
Argus assessments in north and central France were around €617.50/t delivered last week, the highest since June 2022, when prices reached a peak of €670/t following Russia's invasion of Ukraine. Prices in southern France were assessed at €592.50/t, up by €30/t on the week.
The gains reflect stronger high-sulphur fuel oil (HSFO) values in May compared with April. A significant share of domestic truck pricing in France is formula-linked to HSFO benchmarks — in the north and centre to fob Rotterdam barge values, and in the south to fob Mediterranean cargoes.
Some traders this week pointed to spot prices moving as high as €630/t delivered in northern France, despite softer crude and HSFO markets, highlighting ongoing tight supply.
A full-scale maintenance shutdown at TotalEnergies' 219,000 b/d Donges refinery from 9 May to end-June has been followed by bitumen production and supply issues at the company's 246,900 b/d Gonfreville refinery and North Atlantic's 236,000 b/d Port Jerome facility, both in northern France.
These have coincided with reduced bitumen output across northwest and central Europe, as refiners switch from heavier to lighter crudes because of disruption to flows through the strait of Hormuz and prioritise middle and light distillate yields. This has supported bitumen prices across Europe and the Mediterranean since the start of the US-Iran conflict in late February.
Supply constraints have overlapped with seasonal demand as road paving activity increases across France and neighbouring markets. But suppliers warn high prices are starting to weigh on consumption, with June demand below typical levels for this time of year.
TotalEnergies declared force majeure on bitumen supplies from Gonfreville on 29 May after "a major technical incident interrupted production at the facility".
The firm said normal supply may resume by mid-June, "subject to favourable developments". But that timeline remains uncertain, with workers at Gonfreville telling Argus that the damaged unit at Gonfreville, an electrical substation transformer, will not return to service soon.
Following the force majeure declaration at Gonfreville, North Atlantic issued a 3 June notice citing reduced supply from its Port Jerome refinery, attributing this to "several simultaneous incidents" linked to hot weather.
French buyers have stepped up truck imports from the Benelux region, Germany and Spain, while cargo imports into domestic terminals have also helped counter supply shortages.
Spanish refiner Repsol has supplied volumes via the Nantes bitumen import terminal near Donges. Market participants said Repsol's truck sales into France have increased sharply this month, with ex-works prices indicated at €615-630/t.
