Bitumen Price

Bitumen Price

Bitumen price is influenced by several factors. The Bitumen is a by product of crude oil, and its price is related to crude oil price. But, it also depends on other factors:

• Crude Oil Rate
Bitumen is made of crude oil, and the price of bitumen follows the price of crude oil. When oil prices become higher or lower, products also changes.
• Vacuum Bottom (VB) Price
Bitumen is made of the heavy part of crude oil known as vacuum bottom. So, price of products is a function of VB price.
• Supply and Demand
The balance between supply and demand is an important factor. Shortage or high demand for bitumen increases its price. For example, during the cold season, fewer construction projects cause lower demand for product, and product has become cheaper.
• Transportation Costs
Transportation costs impact the cost of bitumen. Long distances between the origin and the destination country increase bitumen prices.
• Currency Exchange Rates
Currency changes affect the rates . A weaker local currency can make imported bitumen more expensive.
• Political Circumstances
Political conflicts in oil-producing countries affect the rate
• Types and Grades
Different types and grades of bitumen have different prices. For example, polymer-modified bitumen is more expensive than regular bitumen because of its costly additives and higher production costs.