DUBAI, Arab Emirates, January 12, 2022 (Newswire.com) – Bitumen might see a more lucrative year despite the doubling prices and turmoil in 2021. Market participants were into deep trouble for updating their purchase strategies to reconcile their financial targets last year. The BitumenPrice.org company, a pioneer market analyst and bitumen supplier, has released the 2022 bitumen market analysis:
The market is still preoccupied with 2021 obstacles; however, big economies have revived slightly and are ready to take measures for stabilizing growth and industrial activities. Here are several crucial components affecting bitumen price in 2022 :
- Covid: Over Based on Oxford Universities studies, 59% of the world has received at least one dose of the Covid vaccine at the moment. Countries have started the booster jabs and nearly 7% of the world has received the 3rd dose. The globe could go through fierce hikes of Delta and Omicron, yet the danger of new variants is still wondering in the world. Vaccination has not stopped the virus, but they have lessened the symptoms and shortened lockdowns. Therefore, countries can expect a better condition compared to the two former years with growing demand.
- Crude oil: Crude failed to fulfill $100 predictions, but it had quite huge growth in 2021. Oil prices rocketed high to $85 and had 55% growth by the end of 2021. Covid fears dampened the price rally; however, it revived above $80 by mid-January. Financial institutions, such as JP Morgan, see $125 per barrel in 2022. Demand is recovering for oil, jet fuel, and gas, in addition to increased mobility and industrial activities. OPEC+ and Big Oils’ decisions also confirm that they expect better demand.
- Shipping and Freight: Container shipping skyrocketed last year. Freights quadrupled in several ports along with new difficulties and regulations. Traders were constantly complaining about volatile prices and unfulfilled schedules. They tried to reduce the cost of marine transportation by searching for cheaper ports. For instance, Indian traders and exporters preferred small ports such as Kandla to the main ports, including Mundra. Export rates of Kandla port in India tripled in 2021 as Indian bitumen traders find it more affordable. The inflationary pressure caused by strong demand and tight supply looks to persist in the new year, which might be a powerful driver of the bitumen market.
Covid resurgence postponed a multitude of infrastructural projects and construction during 2020 and 2021. Experts believe that governments will launch many of the delayed projects in 2022 which will definitely escalate bitumen consumption. Bitumen might face 50% growth by the end of 2022 if fundamental factors stay on their current track.
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Source: Bitumen Price