Bitumen grade 80/100
As a matter of fact, bitumen grade 80/100 is one grade that has a high demand in many countries. Therefore, we have decided to devote this article to the bitumen and oil market. We will discuss some events in this field that will affect the market notably. The first item is the extension of the sanctions on Russia.
Sanctions on Russia
A senior EU official has announced that members of the bloc
have agreed to extend sanctions on Russia for another six months. A high-ranking EU official announced on Wednesday night in Brussels,
the EU headquarters in Brussels, that they have extended current sanctions against Russia for another six months.
“The European Union will extend its economic sanctions on Russia,
which are due to expire in late January 2021,
at a meeting on December 10,
” a senior EU official told reporters, according to Tass. “No one has opposed the extension of the sanctions,
” the senior EU official said,
consulting on implementing the Minsk agreements, under which they usually extend sanctions. Generally speaking,
we expect Eu leaders to decide to extend the sanctions for another six months, after
which the formal extension of the sanctions will begin.
Bitumen grade 80/100 in Russia
It is worth mentioning that in 2014, the European Union imposed sanctions on Ukraine
over the events in Ukraine and the reunification of Crimea with Russia. Since then, they have renewed the sanctions several times.
In addition, they have imposed, trade, financial, and military restrictions on Russia. In response,
Moscow has banned food imports from EU countries. Recently, Russia’s permanent representative to the European Union,
Vladimir Shizov, called the recent EU sanctions against Russia illegal
and said that they would respond appropriately to the sanctions. Moreover, Shizov stressed
that the EU’s actions against Russia will negatively
affect Moscow’s bilateral relations with the EU.
Reduction of export duties on Russian petrochemical products
To be more specific, the Russian government has announced that it will reduce its export duties
on petrochemicals and crude oil next month,
NIPNA reported, quoting IEC. According to the Ministry of Economic Development of the Russian Federation,
duties on exports of benzene, xylene and toluene from October 1, 2020,
will be $13 and 60 cents per ton,
while in September this figure will be $14 and 20 cents per ton.
But NAFTA export duties will be $24.90 per ton in October this year,
up from $26.10 per ton in September. Russia reviews petrochemical export duties every month based on changes in crude oil export duties.
As mentioned above,
Russia’s crude oil export duties will be $45.40 per ton from October 1,
compared to $47.50 per ton this month. Russia’s liquefied hydrocarbon exports will remain stable for October.
Indians, to increase the production capacity of petrochemical products such as bitumen grade 80/100
According to a news agency,
Indian Oil is increasing its petrochemical production capacity for
growing doubts about fuel demand due to the outbreak of the Coronavirus. This is another factor that has affected the
bitumen grade 80/100 largely.
But The state-owned Indian Oil Company plans to increase its petrochemical production capacity
and revive its green development projects at its refineries to ensure the integration of its operations. Besides, Indian Oil CEO SM Vaidya announced at the India
Energy Conference that the company would implement
an oil-refining project to produce more chemicals per barrel
and diversify its petrochemical production to increase profits.
Needless to mention that Indian Oil is the
second-largest producer of petrochemical products in India after Reliance Industries.
“As a long-term strategy and to reduce the risk of doubts about the profit margins of petroleum products,
we intend to increase our petrochemical intensity index (PII) to 14 to 15 percent by 2030,
” said the CEO of Indian Oil. “Increasing the share of petrochemicals can protect the company against price fluctuations in fuel markets,
” Vaidya said, without referring to the current petrochemical intensity index.
“All companies, including Indian Oil,
are trying to have a 20-25% share of petrochemicals in the current structure of their refinery,
only these conditions can protect us from severe fluctuations in the refining sector,” he said.
The decrease in exports of Japanese petrochemical products, such as bitumen grade 80/100
At the same time as Japan’s severe economic downturn due to the global coronavirus epidemic,
the country’s petrochemical exports fell this year. Like Japan, the world’s third-largest economy,
collapses due to the global pandemic of the COVID-19 (Corona) virus,
exports of the country’s major petrochemicals fell in the first seven months of 2020 due to the global economic downturn,
and demand is likely to increase. From foreign markets for the country’s products, continue to decline.
Additionally, exports of benzene, ethylene and propylene
from Japan fell sharply between January and July 2020,
according to supply and demand data from the IEC. Japan, the world’s third-largest economy,
like most Asian countries, has an export-oriented economy,
and automobiles are its principal exports,
the most important downstream market for petrochemical products.
As a matter of fact, preliminary data for August show that the
country’s total exports have continued to plummet due to doubts about a significant improvement
But in demand from international markets and the uncertain future of the coronavirus worldwide.
According to the Ministry of Finance of Japan,
the country’s total exports in the first 20 days of August decreased
by 15.3% compared to the same period last year to 3 trillion
and 30 billion yen, while Japan’s imports fell by 17.4% to 3 trillion yen.
According to the quarterly report of the Ministry of Finance of Japan,
the outlook for capital expenditures has also decreased and
the capital expenditures of Japanese industries in the fiscal year ending March 2021
but will decrease by 6.8%,
normal profit is about to decrease by 23.2% and income Experience a 6.8% drop.