Thailand-based trading firm Tipco's bitumen sales in April-June rose by 68.8pc from the first quarter of this year but were lower by 16.9pc from the same period in 2019.
Tipco sold 540,000t of bitumen and bituminous products from April-June, up by 220,000t from January-March. The increase was attributed to a rise in domestic bitumen requirements following the release of government funding for road construction activity and a recovery in international demand from countries such as China and Vietnam.
Domestic prices in Thailand have been rising steadily since May on the back of tight domestic supply and firm demand, hovering at around $500-530/t ex-refinery this month.
But Tipco's sales were lower on the year as Covid-19-related lockdowns in several countries reduced overall bitumen demand.
The company's revenue from sales and services rose by 27.9pc from January-March but declined by 39.3pc on the year to 6.54bn baht ($210mn) in April-June. The year-on-year fall in sales revenue was mainly the result of a sharp drop in all product prices in line with the plunge in crude prices in March, Tipco said.
But a regional shortage of bitumen supplies and steadier crude prices since June have led to a faster recovery in bitumen prices. Tipco's 30,000 b/d Kemaman bitumen refinery in Malaysia — which can produce 1.2mn-1.3mn t of bitumen — is operating at a utilisation rate of 95pc and above to fill the shortage.
Tipco spent an additional Bt23mn in April-June on crude storage tanks and logistics following damage to crude tanks that caught fire at the Kemaman refinery in July 2018. The crude tanks were recommissioned in May this year.
