What is bitumen ?
What is bitumen? it is the most frequently asked question. Therefore, we have decided to answer this question in another way. In fact, we will examine the bitumen market in another aspect. We start with the changes that have happened from 2010 to the present.
World Financial Markets in 2010
Generally speaking, 2009 has become known as the year of the Great Depression;
The year in which the world economy experienced its worst recession since World War II;
But …
Therefore, we can consider another suitable name for this year. “Year of Great Stability”;
Because 2009 was an exceptional year, not because of the recession and the sharp decline in production,
but because of the reversal of an economic catastrophe.To be more specific, economists and analysts believe that this post-crisis period is much more important than the crisis period;
Because the consequences of this deep recession are very complex and enduring.
According to the Mackenzie Global Institute,
the global financial crisis has reduced the world’s wealth by about $29 trillion in stock and real estate,
and a 60% drop in global investment compared to 2007.In 2010, signs of a gradual recovery
from the global financial crisis became apparent; But in Europe,
the trouble in Greece and Ireland sounded the alarm about the fall in the euro’s value. The beginning of the second food crisis was another concern of the world economy.
What is bitumen?
It’s good to know that on the eve of that year,
economists (last year’s report from the International Monetary Fund) hoped that the world economy would recover from the financial crisis of 2006-2008. Moreover, the International Monetary Fund forecast 2010 average economic growth of over 4.5 percent. As a matter of fact, the IMF forecast was correct sometimes. Among European countries,
Germany’s economic growth reached nearly 4% after several years of stagnation.
Some oil-producing countries also recorded double-digit growth, but by the end of spring 2010,
it suddenly became clear that the Greek government’s outstanding debts had reached €300 billion and that Ireland,
Portugal and Spain were also at risk of bankruptcy;
And the financial crisis in the four Eurozone countries sounded the alarm about a
sharp fall in the exchange rate of the euro,
and they had to devise a solution had to prevent the risk from spreading.
Economy answers the question ” what is bitumen“?
In addition, in May 2010, 16 Eurozone countries,
together with the World Bank and the International Monetary Fund, created a €750 billion “Stability Fund”. Germany alone has secured $120 billion in Eurozone funding. In early December, EU finance ministers passed an $85 billion bailout package for proud Ireland. Thus, Ireland, whose citizens have so far voted against the EU Constitution again,
was the first country to deal with its severe financial crisis with the help of the Euro Stability Fund.
Last year, China’s role in the global economy was controversial in three cases. Specifically, Beijing raised concerns about the limited export of rare metals needed by modern and computer industries,
ousting Germany as a multi-year export champion and playing a key role in reducing food shortages
and high prices around the world. Besides, the World Food Organization (WHO) announced in the fall of 2010 that world grain production had fallen by 2% this year
and that food shortage could create a crisis similar to the 2008 food crisis. According to the World Food Organization,
the average food price rose by 5% between July and August this year alone,
breaking the record of the last two years.
The World Food Organization (WHO) has blamed major wildfires in Russia and floods in Pakistan
as the significant reasons for food shortages and rising food prices,
but Western experts say rising Chinese consumption and the greed of stockbrokers are two other important parameters.
The oil market answers the question ” what is bitumen? ”
In the People’s Republic of China,
the average price increase for all commodities rose by only 1.6 percent from November 2009 to November 2010,
but food prices rose by over 10 percent during the same period.The nearly 30 to 40 percent increase in gold prices
was in fact the market’s emotional response to the aftermath of the crisis. Recently, however, rising gold prices have declined;
But this behavior is as sentimental as the price increase. This was while many basic and precious goods were also growing. Silver grew by 73% in 2010.
Other elements, answering ” what is bitumen? ”
Copper, after years of falling prices, grew by 26.5 percent last year. Nickel grew 27%;
But overall, as in 2009, it was down nearly 9 percent. The average price of crude oil in 2010 compared to 2009 increased by 4%. The key indicators of the stock market in
2010 also confirm a kind of stabilization of the economic and financial situation.
Although the study of the index shows two different periods,
at the end of 2010, the Dow Jones Industrial Average increased by over 9.3%. The London Stock Exchange index also grew by 8.6% this year, reaching 5971 units. Contrary to expectations,
the Tokyo and Shanghai Stock Exchanges,
the Nikkei 225, and the CBN 600 fell 4 percent and 9 percent, respectively.
what is bitumen?
With the growth and decline of various indices in global stock exchanges,
it is necessary to pay attention to the rate of return. In 2010, developed markets provided investors with an average return of 4% year-on-year.However, this yield was associated with a 25% decrease compared to the highest level in 2007;
However, the return of these countries compared to the lowest level in 2009 is over 88%. Additionally, among the developed markets,
the markets of Canada, Japan and Australia had the highest returns.
Respectively, Chile, Indonesia and Turkey were the countries whose markets in 2010
provided high returns for their investors and participants. They had 43.8%, 39% and 30% returns.Compared to their lowest levels in 2009, these countries could generate returns of
207, 344 and 266 percent, subsequently. As the last point, the stock exchanges made many
efforts in that year to attract new companies and offer their shares in their stock exchanges. Preparing and supplying companies
and marketing is time-consuming. During 2010, the Hong Kong, New York, Shenzhen,
Shanghai and Toronto stock exchanges became the initial public offering champions.
Needless to mention that the Hong Kong Stock Exchange raised nearly 60 billion this year. Chinese stock exchanges also
had a combined initial public offering of more than $60 billion. According to statistics, there was an
initial public offering on Chinese stock exchanges every day.