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Iran Market in the last week of August 2022

4 Sep 2022 - 10:45


Argus reports that prices in Iran were mostly stable despite higher VB feed prices and finished costs for producers. Hence, some suppliers were reluctant to offer any cargoes at the current price level. Meanwhile, the continuing volatility in the exchange rate also capped overall liquidity in the market.
Demand rebounded slowly from India with buyers waiting at the sidelines for clarity in price direction and ahead of the end of the monsoon season. Demand remained strong from China and Southeast Asia. Deals and discussions for bulk hovered around $350/t fob for cargoes meant for China, Indonesia, Vietnam and Malaysia.
Bulk cargoes were sold in a wide range for different target markets, while bulk cargoes for India/UAE were at $327-333/t fob countered by bids at $325-330/t fob Bandar Abbas/BIK.
A supplier sold 7,000t of pen 60/70 at $350/t fob on cfr delivery to Far East, with freight rates estimated at about $170-175/t. A 1,000t VG40 bulk cargo was sold at $330/t fob for prompt delivery. A 1,100t bulk cargo was sold at $330/t fob Bandar Abbas headed to Oman for September loading. A trader purchased 1,700t pen 60/70 cargo at $327/t fob on five days delivery this week.
Two vessel size 4,000-5,000t cargoes were sold at $332-333/t fob for prompt delivery this week. A supplier sold a total 8,000t of pen 60/70 and VG40 at $327-329.5/t fob for prompt to seven days delivery. A 5,000t bulk cargo was sold at $328/t fob early this week.
Exports to Pakistan remained lacklustre while bids were at 92,000-93,000 rials/kg for bulk ex-Esfahan, with only small volume bulk cargoes offered on a Rials basis at 95,000 rials/kg ex-Esfahan this week.
Demand for drums increased and large volumes were sold at $405-420/t fob to India, UAE and Southeast Asia, while some suppliers offered at $420-430/t fob.
A total 20,000t drums cargo was sold at average $405-410/t fob for September delivery. A total 30,000t embossed and non-embossed drum cargoes were sold at $407-419/t fob for different target markets. A total 7,000t non embossed drums cargo sold at $432-434/t cfr, that netback to $408-412/t India on different payment terms this week. Several suppliers sold about 10,000t at $405/t fob headed to India for September delivery. Jey embossed cargoes were sold at $418-420/t fob by traders.
Traders were looking to book cargoes for east Africa amidst restocking and increased demand there. But suppliers preferred to sell to India amid high uncertainty in exchange rate.
Buying activities rebounded for jumbo bags as suppliers sold at least 5,000t at $395-410/t fob to southeast Asia. A 2,000t jumbo bag sold at $435/t cfr Ningbo.
Iraqi drum supply remained halted and no fresh cargoes were offered over the past week. The borders between countries were semi-closed for several days following an increase in political tensions in Iraq. Transportation resumed slowly and players delivered previous commitments but no fresh deals were reported.
On the IME, prices firmed but Pasargad Oil announced discount on some cargoes. The producer sold 5,000t bulk cargo of pen 60/70 at 99,200 rials/kg ($348/t) ex-Bandar Abbas, while 1,000t of drums were sold at 118,000 rials/kg ($414/t) ex-Bandar Abbas.
They also sold 1,500t bulk at 94,000 rials/kg ($329/t) ex-Tabriz and another 10,000t of pen 60/70 at 93,300 rials/kg($327/t) ex-Abadan from the BIK port. There was a 200t pen 60/70 drum lot also sold at 108,000 rials/kg ex-Arak.
Jey Oil sold 10,000t of VG40 in bulk at 101,000 rials/kg ($354/t) ex-Bandar Abbas, while 12,000t of pen 60/70 in drums was sold at 109,000 rials/kg ($382/t) ex-Esfahan. Another 10,000t of bulk pen 60/70 cargo was sold at 92,600 rials/kg ($330/t) ex- Esfahan, excluding vat this week.
Vacuum Bottom
VB feed buying interest was mixed over the past week while market direction was not clear due to high volatility in crude futures and HSFO 380cst prices. Some players anticipate a decrease in VB feed prices in the upcoming revision due to the recent fall in fuel oil prices and amid concerns about demand. Some players waited in anticipation of higher bitumen demand at the end of monsoons and 5.6pc competition happened on VB Bandar Abbas this week.
A total 98,000t VB feed was supplied while around 166,00t VB feed demand was registered on the IME and finally 93,000t VB feed was sold by refineries. Bandar Abbas refinery sold 30,000t VB feed at average 95,565 rials/kg, up by 5,065 rial/kg ($17.7/t) week on week. Esfahan Refinery sold 10,000t VB feed at 86,940 rials/kg this week, up about 225 rials/kg. Abadan Refinery sold 10,000t VB feed at 86,200 rials/kg and as no competition was seen. Tabriz Refinery sold 8,000t VB feed at average 88,800 rials/kg, up about 1,600 rials/kg. Shiraz Refinery supplied 15,000t VB and sold 10,000t VB feed at 90,500 rials/kg. Arak Refinery sold 10,000t VB feed at average 87,520 rials/kg before the new revision, up by 3,300 rials/kg. Tehran refinery sold 15,000t VB feed at 90,260 rials/kg while original offers were at 86,200 rials/kg.
Domestic trading remained sluggish on the IME but players were still looking for higher availability of bitumen for domestic road contractors; Producers sold 5,968t bitumen sold at 93,000-165,000 rials/kg this week.


Story Code: 200

News Link :
http://www.bazareghir.ir/en/news/200/iran-market-in-the-last-week-of-august-2022

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