Iran is a petroleum-rich nation that produces bitumen and other petroleum products. Bitumen is a highly strategic product with a large global consumer base. In this situation, bitumen trading might be of interest to you. Delivering bitumen to the ship loading stage is the most effective approach. This method is called Iran FOB Bitumen. In this article from the Parmis Fair site, we will talk about Iran FOB Bitumen.
What is Iran FOB Bitumen?
Bitumen is an essential petroleum derivative that is used in the road paving, waterproofing, and construction industries all over the world. Iranian bitumen sold under Free On Board (FOB) shipping terms is referred to as Iran FOB bitumen. This means that the seller’s liability ceases when the goods are loaded onto the shipping vessel at an Iranian port. Because it clearly outlines the costs, obligations, and risks for both buyers and sellers, this approach is very popular in international trade.
Iran is one of the world’s leading producers of high-grade bitumen, exporting a variety of grades to satisfy the various demands of buyers around the world. Iran has become a dependable bitumen export hub thanks to its strategically located ports, such as Bandar Abbas.
Features of Iran FOB Bitumen
According to international standards, Iran is among the top producers of bitumen. Iranian bitumen is supplied in bulk or barrel form in compliance with international standards and enjoys good international markets.
Iran FOB Bitumen Barrel
Barrels make up a significant portion of Iran’s FOB bitumen exports. In order to be completely suitable for supply to international markets, this type of bitumen is produced in black, sealed barrels. Iran FOB Bitumen barrels are in standard sizes of 200 kg. In addition, this kind of bitumen is made in a variety of grades that can be used in a range of construction projects or climates.
The most significant Iran Bitumen is bitumen 60/70, which is categorized as loose bitumen and exported in barrels. This bitumen has a strong international market and works well in a variety of hot and temperate climates. However, if you intend to trade on the basis of Iran FOB Bitumen, choosing 200 kg barrels of 60/70 bitumen is the best option.
Bulk Iran FOB Bitumen
Using specialized loading ships, a small but highly specialized segment of Iranian bitumen exports is done in large quantities. The two standard forms of Iranian FOB bulk bitumen production—loose and mixed—are perfect for exporting to other countries. But bear in mind that bulk bitumen transportation is challenging, and loading from the port of origin to the port of destination is expensive. It is difficult for the foreign trader, even though the Iranian trader does not bear this expense. As a result, Iranian FOB bulk bitumen is less in demand worldwide and more specialized than barreled bitumen.
The kind of mixture or looseness also affects the cost of FOB bulk bitumen. Iranian FOB bulk bitumen is generally more expensive than mixed bitumen, and it is better suited for long-distance transportation.
Buyers of Iran FOB Bitumen
Iran FOB Bitumen is made for export and is well-liked by buyers abroad. One of Iran’s active business units, Pasargad Bitumen Complex, purchases different kinds of FOB bitumen produced in Iran at a fair price and exports it for supply abroad. However, there are two categories of Iran FOB Bitumen buyers on the other side of the border.
Although they are not final consumers, foreign merchants and traders purchase Iran FOB bitumen to supply their domestic market or any other foreign market. The international distribution of bitumen is handled by these foreign traders under the FOB method, not by the Iranian trader. International traders with headquarters in Dubai (UAE) are the most significant of them. Additionally, a number of trading companies from Asia and Europe are interested in purchasing Iran FOB Bitumen.
Final Buyer
These are the kinds of businesses that purchase Iran FOB Bitumen for their projects. The businesses listed are primarily sizable factories in the international industries, road construction, and civil construction sectors, all of which require a substantial quantity of bitumen throughout the implementation phases of different projects. Furthermore, a number of bitumen production facilities, including international firms that manufacture Isogam, are satisfied consumers of Iran FOB Bitumen. India and Pakistan are also considering purchasing Iranian FOB bulk bitumen.
It is preferable to use the services of Iranian businesses that are involved in the FOB bitumen market, like jey bitumen, if you intend to enter this market. Nonetheless, one of the best methods to locate overseas clients is to use global platforms or take part in specialized international oil and petrochemical or road construction shows.
Iran FOB Bitumen Price
The price of bitumen in Iran FOB is a determinant of bitumen price in the region and even worldwide. Despite the substantial oil resources of the Persian Gulf nations, Iran has emerged as a global center for bitumen production and sells this product on the global market from an economic standpoint. However, a variety of factors influence the price of Iran FOB Bitumen and Bitumen price bandar abbas. These factors include the following:
- the bitumen base price, which is established at the refinery or factory. The price of fuel oil has a complete impact on this base price.
- costs of packaging in factories in Iran. Each type of Iran FOB Bitumen has a different price and is available in barrels, bulk, or bags.
- Transport expenses between the refinery and the port
- Costs associated with ports and ship deck loading
- Costs associated with banking and customs clearance for goods
- global competition and exchange rates, considering the goods of Iran’s rivals, such as Saudi Arabia, Kuwait, and others.
Key considerations when purchasing Iran FOB Bitumen
If you follow the commercial, international trade and technical points for choosing the best type of bitumen, the Iran FOB Bitumen trade is definitely profitable. Things like:
Seek out a trustworthy vendor
Negotiating with a reliable domestic supplier is the first step toward profitability in the Iran FOB Bitumen trade. Iran has a large number of refineries and workshops for bitumen production. However, some Iranian goods fall short of international standards. The best option is to purchase straight from a refinery, such as the professional refineries in Tehran, Abadan, or Kermanshah; however, this comes with its own set of difficulties. In particular, this product is not available for export by Iranian refineries as FOB bitumen. In this situation, you ought to seek out a trustworthy factory that possesses the licenses required to manufacture Iran FOB Bitumen.
Examine the bitumen’s technical specifications
Iran produces a variety of bitumen. However, not all of them can export to other countries. In contrast, different types of bitumen are categorized based on the level of penetration, which corresponds to various climates. For instance, bitumen comes in 60/70, 85/100, and 40/50 varieties. It is necessary to prepare the bitumen’s technical specifications in accordance with the destination country’s climate and the demands of international traders.
Compared to other types of bitumen, 70/60 bitumen has a better international market. But in the end, make bitumen that is certified for quality and produced in compliance with international standards like ASTM or EN.
Establish the terms of payment
Trade in Iran FOB Bitumen entails entering the global market, and currency exchange is typically conducted outside of Iran’s banking sector and with the assistance of foreign banks. Requesting an LC from a respectable foreign bank is sufficient in the best situation. In this instance, the payment route is guaranteed by international banks.
Conditions of loading and packaging
One of the most important aspects of the Iran FOB Bitumen trade is the type of packaging. This bitumen is exported in bulk, bags, and barrels, among other forms. Remember that each method’s packaging type needs to adhere to international standards. For instance, 200 kg black metal containers with sealed lids are required to deliver barreled bitumen to the client. Additionally, it is preferable to conduct thorough inspection and supervision while loading.
determining the Iran FOB Bitumen contract and price
The most crucial phase of the Iran FOB Bitumen trade is the contract. The amount specified in this contract serves as the benchmark for bitumen sales prices, which you must determine based on the FOB conditions of the port of origin and the price per metric ton (MT). A thorough legal discussion is required when determining the price at the time of setting the Iran FOB Bitumen contract, and it is best to seek the counsel of knowledgeable individuals in this area.
Do you want to trade bitumen FOB Iran?
It’s possible that you read this article out of curiosity and for information. However, you might be an oil and gas investor who is now eager to experience trading in Iran FOB bitumen. In this instance, the first and most important step in your business prospects is collaborating with a trustworthy supplier. a vendor who will supply you with Iran FOB bitumen while adhering to all global regulations. To enter the international bitumen trading arena in this global setting, you can rely on Parmis Group’s specialized services.
