The US-Iran conflict intensified again toward the end of the week, pushing Brent crude to around $93/bbl in the latest trading sessions. At the same time, commercial traffic through the Strait of Hormuz remains significantly below normal levels, while reports of a recent attack on an Iranian tanker near Kharg Island have once again increased concerns over freight, cargo execution, and refinery feedstock availability.

For the East Asian bitumen market, the immediate impact of these developments is being felt more through availability, freight costs, and cargo execution risks than through a broad-based increase in demand.

This week’s market assessment shows that sellers across several key origins have less room to reduce prices, while buyers remain reluctant to accept higher offers simply because crude prices have moved higher. Compared with last week, the price gap between origins has narrowed, making origin selection increasingly complex.

Singapore | Tight October Availability Keeps Sellers in Control

Spot availability from Singapore for October remains limited, and buyers with firm requirements have had to move their negotiation levels higher.

Negotiable levels this week are generally assessed at around $645–660/MT FOB Singapore. However, even at the upper end of this range, sellers are showing limited urgency to conclude deals.

As seen last week, the key issue in Singapore is no longer pricing alone. Cargo availability and loading windows are becoming increasingly important in determining which negotiations can actually be executed.

Malaysia | Soft Demand, with Domestic Supply Still Preferred

The Malaysian market remains in the weak-to-moderate range, while unfavorable weather conditions in some areas have also slowed road construction activity.

Compared with last week, there has been no significant new buying pressure. As long as domestic supply remains sufficient, buyers have limited incentive to purchase higher-priced imported cargo.

For foreign suppliers, Malaysia becomes more attractive when they can offer a clear advantage not only in price, but also in delivery timing and confirmed availability.

Indonesia | September Requirements Remain, but the Buyer-Seller Gap Is Still Wide

Some Indonesian importers still have outstanding requirements for September. However, budget limitations and higher seaborne cargo costs continue to prevent buyers from chasing the market without limits.

Current buyer indications are mainly around $690–700/MT CFR, while some offers remain above this range.

Unlike a completely weak market, Indonesia still has genuine demand. However, transactions are more likely to materialize among buyers with urgent requirements, approved budgets, and clearly defined discharge plans.

CIS & Central Asia | Demand Remains, but Execution and Final Delivered Cost Are Key

The CIS and Central Asian bitumen market continues to show meaningful demand for overland supply. However, buyers have become increasingly sensitive to the final delivered cost, border-crossing expenses, and the reliability of transportation execution.

Lower indications from Iran suggest that competition to maintain overland export flows has intensified. At the same time, the absence of widespread new transactions in some packaging segments indicates that buyers are still entering the market selectively.

Infinity Galaxy remains focused on providing practical and reliable supply routes and can offer Iranian and Iraqi bitumen to CIS and Central Asian destinations in 1-MT Jumbo Bags inside Steel Cages, with transportation plans tailored to the destination.

Under current market conditions, the key advantage is not simply the origin price. Origin, suitable packaging, overland routing, border costs, and delivery reliability ultimately determine which offer has a real chance of converting into a transaction.

Thailand | Peak Season Approaches, but Export Cargo Remains Limited

The market continues to anticipate stronger consumption during September and October, but high bitumen prices have so far kept demand growth below expectations.

On the supply side, conditions remain tight. Available export volumes are limited, with selling indications generally starting from around $650/MT FOB Thailand.

Compared with last week, Thailand remains one of the key regional supply origins. However, before engaging seriously on price, buyers increasingly need to confirm October availability first.

Vietnam | Demand Gradually Returns, but Buyers Still Have Options

As rainfall gradually eases, there are early signs of improving consumption, and some buyers have started to return to the market for specific requirements.

At the same time, inventories at many importers remain sufficient, preventing any rush to purchase.

For executable cargoes, levels around $680–690/MT CFR are attracting more attention, depending on origin and destination.

Compared with last week, Vietnam has become somewhat more active. However, Singapore is no longer the only option, with buyers continuing to compare China and Taiwan on both pricing and delivery timing.

South Korea | Price Advantage Over Singapore Is Narrowing Rapidly

South Korea saw one of the most significant changes this week. Tighter availability and increased Chinese buying interest pushed tradable levels noticeably higher.

Current market levels are generally assessed at around $620–640/MT FOB South Korea, with even higher levels being discussed for certain urgent requirements.

South Korea can still serve as an alternative origin, but its previous price advantage over Singapore has narrowed considerably compared with the past few weeks.

At this stage, grade, freight, and destination are becoming increasingly important in determining whether the arbitrage remains commercially viable.

China | Tighter Domestic Supply; October Exports Are No Longer Cheap

In China, tighter supply and higher feedstock costs have pushed prices higher, although actual consumption has not increased at the same pace.

Rainfall, budget constraints, and the rapid rise in prices have led many domestic buyers to focus only on immediate requirements.

On the export side, the picture is different. A significant portion of September supply from South China has already been absorbed, while October selling indications are being discussed at around $645–650/MT FOB South China.

This means China remains an important supply origin for Vietnam and Southeast Asia, but it can no longer automatically be considered the cheapest option in the market.

East Asia Insight by Taraneh Naraghi

The market message has shifted slightly compared with last week: tight supply is no longer only a Singapore story.

Singapore remains tight for October. Malaysia continues to face limited buying pressure. Indonesia still has demand, but buyer budgets remain constrained. Thailand has limited export availability. Vietnam is gradually becoming more active, while still comparing multiple origins. South Korea has lost a significant portion of its previous price advantage, and China is also moving toward higher export pricing as availability tightens.

In this environment, the cheapest offer is not necessarily the best option.

Origin, grade, availability, loading window, freight, and, most importantly, the actual ability to execute the transaction are now the factors determining which cargo is truly worth pursuing.

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Iran is still the lowest-priced major origin, but restricted shipping has changed what 'competitive' means. South Korea, Singapore and China are filling parts of the gap - at a higher cost.

The Strait of Hormuz crisis has not removed Iran from Asia's bitumen map. It has changed how buyers define value. By mid-August, Iranian bitumen exports remained constrained by the maritime blockade, while Asian buyers increasingly compared cargo availability, loading schedules and delivery certainty alongside FOB prices.

The outcome is not a clean replacement of Iran by one country. It is a more expensive multi-origin system: Singapore carries a scarcity premium, South Korea provides a more executable alternative, China exports opportunistically, and India relies more heavily on domestic refineries when imported cargoes become difficult to deliver

Key Takeaways

No single country has replaced Iran in the Asian bitumen market.
Singapore moved from roughly $360/t in February to around $620/t by August, mainly because of tight supply rather than strong demand.
South Korea became the most balanced substitute on price and execution, but its export capacity and grade flexibility are limited.
Iranian quoted prices fell sharply, yet freight, insurance, delays and uncertain loading reduced their commercial value.

How the Market Changed in Three Phases

Phase 1: A broad regional price shock

On 20 February, Singapore export bitumen was assessed at $355-365/t, South Korea at $365-370/t and the Mediterranean at about $364-369/t. East China stood at $395-410/t CFR, while Mumbai bulk prices were $553-588/t. Price gaps between major Asian origins were still manageable.

By 5 June, Singapore had climbed to $585-590/t, South Korea to $550-560/t and East China to $590-600/t CFR. Mediterranean values reached about $576-580/t, while Mumbai rose to $777-840/t. Several markets had gained more than 50% in less than four months.

Phase 2: Crude eased, but shipping did not normalize

A temporary political understanding reduced the war premium and brought Brent back toward $72/bl in early July. Physical bitumen trade, however, did not recover at the same speed. The passage of a few vessels was not enough to restore predictable loading, insurance and delivery schedules.

Phase 3: Execution risk became the real benchmark

After the interim arrangement ended, shipping risk returned as the first market variable. By 10 July, Singapore was $605-615/t, South Korea $515-529/t and the low end of Persian Gulf assessments near $328/t. The roughly $280/t spread was not a quality gap; it was the market price of deliverability.

The next escalation restricted safe passage through the Strait of Hormuz and lifted freight, war-risk insurance and delay exposure. By 23 July, traffic had fallen close to zero while Brent moved above $96. At the end of July, Singapore was $619-630/t, South Korea $525-545/t and East China $560-580/t.

Even when Brent later fell toward $79, bitumen prices resisted the decline because regular vessel traffic and reliable loading schedules had not returned.

Which Origins Can Replace Iranian Bitumen?

Origin	Market Role	Main Advantage	Main Constraint
Singapore	Scarcity benchmark	Reliable regional hub	High price; limited spot supply
South Korea	Most balanced substitute	Executable schedules and discount to Singapore	Limited capacity and grade flexibility
China	Opportunistic regional supplier	Southern export availability	May retreat when domestic demand returns
Iran	Lowest quoted origin	Capacity, packaging and proximity	Vessels, insurance and unpredictable loading

Singapore: A Scarcity Price, Not a Demand Boom

Singapore export prices rose from about $360/t in February to more than $620/t by August. The increase was not matched by equally strong demand from Vietnam, Indonesia, Malaysia or China. Instead, feedstock constraints and limited prompt cargoes reduced sellers' willingness to lower offers. Infinity Galaxy's latest East Asia supply analysis similarly shows buyers raising levels while sellers remain in no rush to conclude business.

Singapore is still an important benchmark, but its price now includes a scarcity premium. Buyers should not treat it as a simple regional reference without adjusting for availability, freight and destination economics.

South Korea: The Most Executable Partial Substitute

South Korea gained because it combined a discount to Singapore with more predictable loading. After reaching $550-560/t in early June, Korean export values corrected to $515-529/t by 10 July and remained around $525-545/t at the end of the month.

Cargoes from Ulsan and Yeosu became more attractive to Vietnam, China, Australia and other Asian destinations. As the late-July East Asia market assessment noted, buyers increasingly prioritized origin, availability, loading schedule, freight and confidence in execution. South Korea meets more of those tests than a low-priced but uncertain cargo.

It is still only a partial replacement. Export capacity is limited, some grades are not suitable for every project, and freight can be longer for markets traditionally supplied from the Persian Gulf.

China and India: Two Different Responses

China's weak domestic demand created room for exports just as regional availability tightened. East China prices fell from $590-600/t CFR on 5 June to $530-560/t on 10 July, while southern Chinese export cargoes were discussed around $615-625/t in early August. China became an opportunistic supplier, not a structurally low-cost replacement.

India followed another path. Mumbai bulk prices rose from $553-588/t in February to $815-884/t on 10 July, then fell to $737-791/t by the end of the month as the monsoon weakened road activity. Domestic refiners cut VG30 prices by about $22/t from the start of August, but imported cargoes remained expensive because freight and execution risk did not fall at the same rate.

India therefore delayed imports and leaned more heavily on domestic production. If post-monsoon demand returns before regular passage through the Strait of Hormuz, the gap between domestic refinery prices and workable import costs could widen again.

Why Cheaper Iranian Bitumen Is Not Always More Competitive

Iranian VG40 fell from $435-457/t on 12 June to $323-333/t on 10 July - an average decline of about 27% in less than one month. Under normal commodity logic, rising supply risk should support prices. Iran moved in the opposite direction because fewer buyers believed the cargo could be loaded and delivered on schedule.

Vessel shortages, irregular container services, port costs, insurance, demurrage and uncertain departure times reduced the value of the FOB discount. The market had already seen how safe-passage disruption widened the gap between a quoted price and an executable cargo.

A buyer must add freight, insurance, waiting time, working-capital exposure and project-delay risk to the origin price. A cargo bought cheaply but delivered months late can cost more than a higher-priced Korean or Singaporean shipment.

The long-term risk for Iran is customer adaptation. Each time a buyer approves a Korean specification, contracts with a Chinese supplier or establishes a Mediterranean route, a complete return to the old supply pattern becomes less likely. The failed late-July pause in attacks reinforced this shift by keeping logistics - rather than price - at the center of procurement decisions.

So, Who Has Replaced Iran?

No single country has replaced Iran. Singapore offers dependable supply at a high price. South Korea is more balanced but limited in volume and flexibility. China can export when domestic demand is weak, but may pull back when road activity recovers. Mediterranean cargoes add diversity, but longer distances and regional availability constraints limit their role.

The real replacement is a supply basket. Buyers are splitting orders among several origins, holding more inventory, accepting longer transit times and paying more for delivery certainty. This system is more resilient, but it is less efficient in cost, working capital and operational complexity.

What Buyers Should Watch Next

Several consecutive cycles of vessel entry, loading and exit through the Strait of Hormuz - not a single successful transit.
War-risk insurance, freight offers and shipowner acceptance for Persian Gulf loading.
Singapore feedstock availability and September-loading cargo supply.
South Korean export schedules and the size of its discount to Singapore.
Whether southern China remains an exporter after rainfall eases and domestic road demand returns.
The recovery of Indian demand after the monsoon and the spread between refinery and import prices.

Frequently Asked Questions

Can South Korea fully replace Iranian bitumen?

No. South Korea is currently the most balanced substitute on price and execution, but export capacity, grade suitability and freight prevent it from replacing all Iranian volumes.

Why is Singapore bitumen so expensive?

The premium mainly reflects limited feedstock and spot availability, not a broad demand boom. Singapore has become a scarcity benchmark.

Why did Iranian bitumen prices fall during higher geopolitical risk?

Because the pool of buyers able to execute shipments became smaller. Sellers reduced the product price, while buyers still faced higher logistics and delay costs.

Could China become a permanent bitumen exporter?

China can expand exports when domestic demand is weak and regional supply is tight. Its role may shrink when rainfall eases and internal road demand recovers.

What would signal a real recovery in Iranian exports?

Repeated and predictable vessel access, loading, insurance coverage and delivery, not only a political announcement or one successful transit.