Bitumen grade 60/70 

In this article, we will discuss the variables that affect the bitumen grade 60/70 in some way. As a matter of fact, many global events change the bitumen and oil market,

some of which we will mention here. So, read this article to the end,

so that you can expand your view in this regard.

Latest Bitumen price

Ambiguous outlook for petrochemical markets in 2021

This is the first notion that affects the bitumen market, oil, and bitumen grade 60/70. Generally speaking, Hungary’s oil and gas group Amoval believes

the outbreak of the global coronavirus and

political uncertainty has clouded the outlook for the

petrochemical market for next year. Georgy Hallsz, an environmental analyst at the Hungarian Oil and Gas Group,

told the Global Platts Virtual Conference

“Petrochemical Markets Europe”

that the outlook for the fourth quarter of 2020 and

2021 following the outbreak of the global coronavirus,

political skepticism and new laws on the use of disposable plastics would be obscure.

Hungary’s oil and gas group identified four points of uncertainty ahead of the petrochemical sector

at the Global Platts Virtual Conference

“European Petrochemical Markets” as Europe enters the second wave of the Corona epidemic.

Corona effects on the bitumen grade 60/70 market

To be more specific, quarantine and restrictions,

the timing of which is unknown, will have unintended consequences,

along with severe strictures across continental Europe on downstream demand conditions. The corona vaccine, the timing of achieving an effective vaccine across the Green Continent that may be

the answer to the COVID-19, is still unclear, and quarantine and

restrictions will remain in place until they resolve this problem. It is worth mentioning that laws on the use of disposable plastics,

new regulations such as imposing tariffs on plastic waste have raised doubts about pricing,

especially for grades of polyethylene such as heavy polyethylene.

Besides, political doubts and negotiations on Britain’s exit from the European Union early without a deal from January 1, 2021,

Doubts that the return of materials produced in the European Union will be subject to tariffs and duties on entry into Britain. The complete petrochemical value chain,

which typically occurs on a time scale of 5 years or more,

But is available in just 10 months from late 2019 to 2020, Halasz said. “The current weak market conditions differ from the weakness

in the first wave of the Coronavirus epidemic when oil and

naphtha prices fell due to low demand for fuel,

while demand for petrochemicals from the healthcare sector increased,” he said.

Market demand for bitumen grade 60/70

“In the April-May period, they observed high margins as raw material prices fell for several months,”

said Amwal Oil and Gas External Environment Analyst. “Import pressure on raw materials eased because imports

could not reach European markets at an acceptable price and

demand had an unfavorable period,” Halasz said. “Demand is weak this time, but the situation is different,” he said. External demand for raw materials,

especially from China Due to the exploitation of new ethylene capacity in Asia and the United States,

the high demand for naphtha causes the naphtha price gap to widen.

The Thais are completing the Ohio-US petrochemical project

This is another factor that affects the oil and bitumen grade 60/70 market. Let’s see what this means. The Pitti Oil and Gas Company of Thailand has announced that they commit to

complete a petrochemical plant in Ohio, USA. In other words, the US subsidiary of the State Petroleum and

Petroleum Corporation of Thailand (PTT PCL) announced that it is pursuing and continuing work on a

petrochemical project defined in the US state of Ohio to convert ethane into plastic products and develop the region’s economy,

NIPNA reported, quoting Reuters. Additionally, the Thai newspaper Nation reported last week that Pitti had

instructed PTTGCA to review its ongoing project plans for changes in investment conditions.

The newspaper reported last week that the circumstances included the election of

Joe Biden as President-elect of the United States,

who is likely to change Washington’s trade and investment policies. Pitti said in a statement that

Pitti Global Chemical Company of the United States is working to advance the petrochemical project and

is devoting its time and resources to the project to create thousands of jobs

and expanding the region’s economy.

Needless to mention that the company has stated that

they have not stopped the project yet. Moreover, they are still waiting for the project to progress in the coming weeks and months.

Generally, in June, US-based Global Chemicals

announced the completion of a final investment plan to build the Ethan Cracker unit,

which analysts estimate would cost $5.7 billion,

due to the outbreak of the global COVID-19 (Corona) epidemic virus in the first half of the year. To put it differently, they postponed the 2020 project to the first half of 2021.

Purchasing a 50% stake in Sasol in a petrochemical project by Lindel Basel

Lindell-Basel announced that it had bought a 50 percent stake in

Sasol Petrochemical Company in the Charles Lake Petrochemical Project for $2 billion.

This event also affected the bitumen grade 60/70 prices and oil market. South Africa’s Sasol Petrochemical Company announced that

they would establish a joint venture between Louisiana Polyethylene

and Lindelbazel Petrochemical Company after the signing of

a final agreement on December 1, Reuters reported.

In October, Lindel Basel agreed to buy a 50 percent stake in Sasol Petrochemical Company

in the Charles Lake Petrochemical Project for $2 billion and to run the newly established

Louisiana Polyethylene Joint Venture. In addition, South Africa’s Sasol Petrochemical Company has announced that it

has agreed with its lenders to amend the December 31 agreement.