The determination process-of industrial bitumen pricing
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Posted On :
Dec-05-2011
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Article Word Count :
541
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The Soaring Oil costs though assures the irregularity in the industrial bitumen price, there is not a great procedure to get the bitumen price by now.
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The Soaring Oil costs though assures the irregularity in the industrial bitumen price, there is not a great procedure to get the bitumen price by now. The bitumen industry is becoming grown up and liquid. The vast majority of the exporting countries comprise of Singapore, Iran, Saudi Arabia, Egypt, Thailand in this area has numerous inputs and the range changes significantly.
For industrial bitumen, there are no posted prices with the exception of for certain gathered prices from few paid subscription services ; sellers rely on a number of costing tactics that reference different posted crude qualities.
Industry costing is periodical with greater prices through peak season like summer being the norm because of greater demand for industrial bitumen and other bitumen produced products.
More essentially, industrial bitumen is regularly combined with diluent (generally in the form of C5 or synthetic light crude) with a view to allow its shipping by means of pipeline to tankers.
Therefore, the useful field bitumen price is also straightly affected by the input price of the diluent required, the demand and amount of which is also seasonal in nature (in winter as colder temperatures need more diluent for transport).
Thus, bitumen price is notoriously high in summer and for the period of significant shutdown by the refineries and not reflective of the annual average realized price or the finance of the business overall.
The strong bitumen demand hinders the useful field prices for the period of peak period for a number of factors. Additionally to the normal periodical problems, boost in bitumen demand and the premium for diluent was significant as a consequence of various situations such as production disturbances at a localized refinery.
The lack of a typically known procedure to the determination of right bitumen price, coupled with the pricing seasonality (which has not been effectively addressed ) indicated that any number of interpretations existed as to how year-end bitumen price should be concluded, for the reason for filing to the regulative professionals, too.
With billions of barrels of potential and huge amounts of dollars of planned money expenditure, the industrial bitumen resources are widely realized to be a cornerstone of future energy demands and are getting noticeable awareness from abroad legal powers also.
It is in the best fascination to all investors (traders, capital markets, ruling systems, manufacturers and the public at large) that a year-round bitumen price strategy be founded that moderately displays the standard market situation and is not unduly affected by periodic demand, weather-driven or cataclysmic cost movements.
Actually, the acceptance of the suggested approach for all crude attributes would have small or no impact on reported established booked quantities for all types, industrial bitumen excepted. For no other grounds than industrial bitumen only is subject to the severe seasonality in realized pricing over calendar.
A few industry watchers propose to find out the constant bitumen price by using, for the benchmark reference pricing, the listed cost for the crude oil after applying historical changes (that means the average of the changes for the 12 months prior the date of the approximate) for transport and for quality, which generate the cost differential between crude oil and industrial bitumen.
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Article Source :
http://www.articleseen.com/Article_The determination process-of industrial bitumen pricing_114425.aspx
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Author Resource :
The author is a professional of Industrial bitumen and presently working in Bengal Bitumen. Bitumen price is cheap and affordable.
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Keywords :
bitumen price, industrial bitumen,
Category :
Business
:
Entrepreneurs
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