Bitumen market in India saw a significant surge in consumerism in September 2023 compared to September 2022

Bitumen consumption in India for September saw a rise compared to the previous year, fueled primarily by projects associated with the central government's national highways and the maintenance activities in certain northern regions. However, when juxtaposed against August's consumption figures, there was a noticeable decline, largely due to the weakened demand in other crucial regions, attributed to the monsoon season.

Preliminary data sourced from the oil ministry revealed that September's bitumen consumption stood at 527,000t. This marked a significant 45% surge from the 363,000t recorded during the same period the previous year. Yet, when compared to August's consumption of 554,000t, there was a 5% reduction.

A west coast-based bitumen importer and dealer, while discussing the figures with Argus, expressed that the decline from August was less than anticipated. Factors such as the monsoon season and extended complications related to project fund disbursements by state governments impacted the road paving activities in the eastern, western, and central zones of India. Despite these challenges, the overall consumption appeared robust, primarily because several dealers made strategic decisions to buy and stockpile refinery cargoes. The motivation behind this was that the domestic refinery cargoes' listed prices were comparatively cheaper than the seaborne values.

Support for the bitumen consumption was evident from the national highway projects spread across the country. Additionally, there were monsoon-related immediate maintenance tasks in specific northern regions, particularly in the Uttar Pradesh state. However, the impending cold weather conditions may dampen demand in the near future.

A dealer commented on the situation, noting the excellent progress of projects under the National Highways Authority of India across all states. These projects predominantly source their bitumen from state-regulated refineries, owing to the rigorous quality checks mandated by the central government. This sentiment was echoed by an official from an Indian refinery.

Nevertheless, the country has observed a tepid demand from projects linked to state governments, resulting in elevated inventory levels. Consequently, some importers have opted to postpone their seaborne acquisitions, while others resorted to offloading bitumen at substantially discounted rates. This trend has also led some refineries to slash their bitumen provisions for the upcoming month of October.

According to the article by Procurement Resource, India's September bitumen consumption rose year-on-year, driven by national highway projects and maintenance in northern regions. However, it decreased from August due to monsoon impacts. Consumption reached 527,000t, up 45% from last year but down 5% from August, per the oil ministry. Monsoons and funding issues affected road work, but dealers stocking cheaper domestic cargoes kept consumption high. Despite support from national projects, state-associated demand lagged, leading some refiners to cut October supplies.