Belgium<.strong>
Supply tightness was still evident in Belgium but this was understood to be the result of ongoing bitumen availability problems at the 20,000 b/d Petroplus bitumen refinery in Antwerp, now owned by the US Carlyle group. The company was reportedly running light crude because of problems obtaining heavier bitumen-rich grades. In July, Petroplus was forced to implement an action plan at the refinery following the refusal by the Antwerp authorities to renew the refinery’s environmental license on safety grounds.
Bitumen prices were on a downward trend but this was quite usual in the second half of the month, sources said. Prices were €5/t lower at €200-210/t ($240-252/t) delivered.
The price ex-wharf Antwerp was correspondingly lower at €195-200/t fob, based on average transportation costs of €12-13/t.
France
Total’s 351,000 b/d Gonfreville refinery in Normandy, northern France remained shut down by a strike at the end of last week. The refinery was shut down on 26 September, six days after the strike by refinery workers over pay and working conditions began. The workers were due to meet on 14 October to decide whether to continue the strike. Total was supplying customers from its other refineries but was also understood to have purchased supplies from the Netherlands.
Operations at BP’s 210,000 b/d Innovene refinery at Lavera were slowly returning to normal last week following the suspension late on 10 October of a blockade by port workers of the Fos-Lavera complex. The refinery had been forced to operate at minimum crude throughput rates as the two-week blockade prevented it from receiving crude deliveries.
The refinery’s reduced operations had not affected bitumen deliveries from the plant, sources said. The refinery has the capacity to produce some 650,000 t/yr of bitumen.
Bitumen prices rose by around €10/t this month, to €240-250/t delivered in the north of the country, €235-245/t delivered in the south and €225-245/t delivered in the central region.
Germany
German refiners were still struggling to meet the unexpected surge in bitumen demand. Both the 265,000 b/d BP Gelsenkirchen refinery and the 170,000 b/d Shell Godorf refinery were reported to have obtained incremental supplies from neighboring countries, particularly from the Netherlands.
German exports have dropped considerably following the rapid rise in domestic demand, sources said.
Construction work ahead of next June’s soccer World Cup championships was one of the reasons for the rise in demand. But the major cause was the vast amount of revenue from Germany’s road toll system for heavy goods vehicles. The toll was introduced at the beginning of this year, and is being ploughed into road maintenance.
The toll scheme has generated more than €2.12bn in revenue for the German government in the first nine months of this year. For the year as a whole, the German government expects this to rise to €3bn. Revenue for September alone was €256mn, the highest monthly figure so far. The government is reported to be spending some €80mn-90mn a month from the toll revenue on road improvement.
Bitumen prices were unchanged at around €205-210/t for the country as a whole. Prices in the eastern region were some €5/t lower. Prices increased by around €15/t at the beginning of October, the third consecutive monthly increase.
Italy
Bitumen demand picked up last week as weather conditions improved from the previous week, and came in line with normal levels for the time of year.
Demand for the year as a whole was estimated to be some 5pc down on 2004, primarily because of a fall in government spending, the result of worsening economic conditions in the country.
Domestic bitumen prices fell by €10/t to €195-200/t fob refinery before tax or €225-230/t fob refinery including the €31/t tax.
Road tanker loadings were due to resume from the bitumen plant at API’s 80,000 b/d Falconara refinery in central Italy on 24 October. Tanker loadings were stopped in September last year following a fatal explosion in the bitumen-loading bay. The refinery produces around 400,000 t/yr of bitumen.
Netherlands
The bitumen market remained active, and demand for 2005 was on track to exceed last year’s level. Demand next year is expected to be higher still.
Improving economic conditions have enabled the government to spend more on road maintenance. The government is expected to give the go-ahead soon for several large projects — both road and rail — in the western part of the country. The planning process has already been completed and, if the green light is given, work will start next year.
Buoyant demand in neighboring Germany, a refinery strike in France and supply problems in Belgium tightened bitumen availability in the Netherlands. Exports of bitumen were moving from the Netherlands into Germany and France.
Domestic bitumen prices were unchanged at around €205/t fob ex-wharf Rotterdam.
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