The price of bitumen increased 10 times
According to Tejarat News, Mohsen Varzeshkar, a bitumen industry expert, referring to the pricing method of vacuum baton for the production of consumed bitumen in the country, said: “One of the challenges that the domestic bitumen market has always faced is related to this issue, why the price of vacuum baton Primary is the production of bitumen, for domestic use is a function of the price of FOB Persian Gulf heavy furnace oil and the exchange rate in the Nima system.
He continued: “This type of pricing is while the country has oil reserves and also the country’s refineries have sufficient capacity or even surplus production of vacuum baton so that out of a total of 6 million tons of vacuum baton produced in the country, domestic consumption capacity It is less than 2 million tons annually.
The athlete explained: why the bitumen required for asphalt of intercity roads, villages and cities should be affected by fluctuations in oil prices in international markets or the dollar rate in the Nima system so that the bitumen rate will increase approximately 10 times from May 1399 to November 1400.
The bitumen industry expert said: “Of course, it is necessary to pay attention to the fact that the bitumen market has two completely different aspects of domestic and export, so that the matching of export prices with international market prices is necessary and all measures should be taken to bring export sales rates closer to export.” International rates, taking into account freight rates and preferential tariffs, should be considered in order to create competitiveness, and fortunately, in recent days, the gap between Iran’s export sales rates and other markets has reached the lowest possible level.
The story of limited construction budget and the exponential growth of bitumen prices
He added: “But on the other hand, the bitumen market is related to the domestic market, which has very different conditions from the international markets, because up to 95% of the country’s bitumen consumption is related to asphalt and less than 5% is related to other bitumen consumption.” Also, more than 95% of the total asphalt consumption is related to infrastructure and inter-city, inter-city and rural roads.
The athlete said: “As a result, due to the limited construction budgets and also the need to use internal resources in creating and maintaining roads, bitumen should be provided to the executive bodies at the lowest possible price, because for example only in the road sector, lack of timely supply.” Bitumen will increase maintenance costs in the coming years due to limited resources.
The price of domestic consumption vacuum baton should be determined independently of the price of currency and FOB
The bitumen industry expert said: “These days, it is heard that the relevant officials in the Ministry of Silence and the Market Regulation Headquarters are preparing and approving a plan based on which the price of vacuum baton will be determined independently of the price of FOB Gulf oil and the dollar rate in Nima system.” The open auction mechanism of the commodity exchange determines the price of vacuum baton and consequently bitumen in the market.
He said: “Regardless of the advantages or disadvantages of this plan, at first glance, how to implement its implementation method in the commodity exchange is very important and also the price of vacuum baton in this method will be strongly affected by the supply by refineries.”
The athlete emphasized in the end: Therefore, it is expected that the relevant officials, before making a decision in this case, explain all the effects of this important decision by explaining it in detail to the market stakeholders.
Source: فارس
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