This year’s bitumen season has been marked by a few changes in the Russian market, the first of which is an almost 74% increase in the average annual price of road bitumen.
The next trend is high bitumen prices at the end of the season. For the first time the end of the season closes with such high prices for bitumen at refineries. This will create additional pressure on the market, as the operators of storage terminals for purchase in the low season are used to the price difference between low and high season being about 60%.
Legion Oil & Gas LLC’s market forecast for 2022:
- The rise in the price of energy carriers, mainly oil and primary refined products. This is important because the price of bitumen still has a strong dependence on the price of HSFO 3.5%.
- Smoothing the effect of the tax maneuver. The increase in Urals prices will virtually nullify the expected reduction in the export duty rate as part of the tax maneuver (the export duty is calculated based on monthly Urals quotations). (See Chart 2 below). The announced export duty rate for January is 46,7 USD/t.
- Ongoing major infrastructure projects in Russia, which will continue to fuel demand from local consumers.
Results of the year for Legion Oil & Gas LLC:
- We started offering DDP delivery terms to all our customers in the Baltic region and Finland. This year we have completed our registration as a VAT payer in Lithuania and Estonia.
- The most demanded product grades in the region (with the most tonnage for Legion Oil & Gas LLC) are:
- Bitumen grades 70/100 (EN)
- PMB 45/80-55
- PMB 25/55-60 grades (EN)
- Legion Oil & Gas LLC was speaking again at the largest bitumen conference, Argus Bitumen and Asphalt Live 2021.
- The bitumen team at Legion Oil & Gas LLC is growing and developing.
Legion Oil & Gas LLC offers EN-certified bitumen to their clients worldwide. We offer the liquid product in tank trailers, tanker shipment by sea and the packaged product in clovertainers. If you would like to order this product or get more information, please write an email to info@legionoilandgas.com.
