An overview of the Indian Bitumen Market

India has the world’s second largest road network after the United States of America, with a road
infrastructure of over 47,000 km.
The Indian bitumen market that is currently around 5 million tonnes is expected to grow in the future
due to the Governments proposed construction projects to upgrade the road network.
Bitumen is used as a binder in road construction and in roofing and waterproofing applications.
Almost 90% of the bitumen is used in India is in road construction with the balance of 10% shared
equally for roofing and waterproofing.
Nearly 90% of this demand is provided from domestic production of bitumen, whilst the remaining  10%
is imported, mainly from the UAE and Iran.
The bitumen currently used in India are either penetration grades or the currently preferred viscosity
grades.
Bitumen handling in India is still mostly done by using traditional methods, which includes heating of
bitumen drums on-site in the open. Recently the Government has issued instructions and regulations to
provide application methods of bitumen and solutions to eliminate environmental problems in the handling
of bitumen.
Bitumen packaging and transportation in India is mainly provided in bulk, or in drums. Other innovative
packaging types like polybags are available, but problematic due to the hot climate in India, which causes
bitumen to melt in the bags.

India’s massive demand for bitumen

India to lead the pack in bitumen consumption – Partha Pratim Basistha reports from the Asian Bitumen
Conference In the emerging global bitumen market, demand is expected to reach 122 million tonnes
by 2018. Increasing road construction activities in the fast-growing markets of India and China will be
the main growth drivers of the bitumen market in Asia. This was the message delivered at the 10th Asian
Bitumen Conference held in New Delhi, India from 23rd-24th November 2015.
The two-day event, organized by Conference Connection and supported by the Indian Ministry of
Petroleum & Natural Gas attracted strong participation from Indian road contractors, bitumen producers,
traders and key bitumen industry experts and speakers from India, US, Iran, UAE, Sri Lanka and
Indonesia. The speakers discussed in detail the latest market trends and technical developments in the
bitumen industry and offered insights about the new challenges and opportunities offered by India and
other emerging Asian bitumen markets.
Delivering the inaugural address, Dharmendra Pradhan, the Indian Minister of State, Ministry of Petroleum
& Natural Gas said, “India commands a road infrastructure of 3.3 million km, the second largest road
network in the world, after the USA. Out of the total network, India’s National Highway network
comprises 100,000km of State highways, while village and district roads occupy 2.8 million km. The
National Highways cover 2% of the total network and carry the maximum share of freight and passenger
traffic making them India’s lifeline. The government has kept the development of roads at a high priority,
allocating more than 10% of total spending from 2012-17 to the road sector. The investments would be
for setting up new networks and rehabilitating existing road networks. In such a scenario, bitumen will
play a vital role towards planning and execution of road construction projects in India. Based on the
projected demand from upcoming projects, India’s bitumen consumption will outpace production in the
coming years.”
He said, “It is commendable, that to ensure longevity to road projects, Indian refiners have begun
producing viscosity grade, polymer modified bitumen, emulsifiers and other value-added bitumen.”
However, the minister insisted, “Owing to diverse climatic conditions, it requires the better understanding
of bitumen supply and demand in the country by the Indian and foreign refiners and traders.”
In his welcome address, CEO, Hotcrete Infrastructure India Pvt, Ravikanth Reddy said, “During 2014–
2015, total bitumen sales in India were 4.8 million tonnes. Based on the ambitious road development
plan of the government, there will be an increase in demand of bitumen in India. Presently,  90% of India’s
road requirement of bitumen is met by the local oil refiners while the rest is imported.”
Speaking at the conference, RK Pandey, Member Projects, National Highway Authority of India (NHAI)
said, “There are colossal business opportunities for bitumen producers and suppliers in India, based on
numerous road development projects being undertaken by NHAI under the prestigious National Highway
Development Programme (NHDP) to strengthen India’s existing National Highway network handling the
fast-growing traffic on its two-lane and six-lane express ways.
Sharing details, he said, “Projects are being undertaken in seven phases by the NHDP. This involves the
development of the ‘Golden Quadrilateral Link’, connecting India’s four metropolitan cities: Mumbai,
Delhi, Kolkata and Chennai, and involving a network of 7,000km. The second phase involving a network
of 5,500km will connect the east and west and north and south of the country. Projects in the third,
fourth, fifth and sixth phases will involve strengthening the feeder network connecting the GQ. Key
projects include six-laning of the Golden Quadrilateral network, setting up of expressways on Delhi-Agra
route, Delhi-Chandigarh in North India, Ahmedabad-Vadodara, Vadodara-Mumbai in Western India, and
Bengaluru-Chennai in Southern India. Phase seven involves the construction of flyovers, expressways.
Further, under NHDP, there is the ‘Special Road Development Project’ for the North Eastern States of
India and development of National Highways on India’s international boundaries, and road connectivity
improvement initiatives to India’s non-major ports.”
Pandey insisted, “Since most of the newer Indian road projects are being developed on the ‘built operate
and transfer’ contract model, the bitumen supplied should be of desired quality and have to deliver total
lifecycle costs. This has been found short on many occasions.”
Making a presentation on the outlook of the Indian bitumen market, RS Sisodia, general manager
(consumer sales), Indian Oil Corporation, the state-owned oil refiner said, “Demand for bitumen in India is
determined by budget allocation, duration of financial closure of projects and the release of funds. State
government road projects contribute 55% of bitumen demand. The NHDP based on World Bank and
Asian Development Bank financing contributes 40% of demand and central and industrial sectors
contribute 3% of demand. Based on newer requirements for road projects with longer maintenance
schedules, IOCL has upgraded its refineries to produce viscosity grade bitumen made through its six
refineries.”
He said, “Viscosity 10 grade bitumen comprises 35% of demand in India, VG 30 comprises 60% of
demand and VG 40 comprises 5% of demand. Based on duration and size of road projects taking place in
India, there is a variation in demand across regions in bulk and in drums. However, with bigger road
project packages being awarded in Western and Northern Region, demand for bitumen has gone up in bulk
to 87. 2% in 2014-15, up from 81.4% during 2006-07 in the region.”

Bitumen imports India jump as highway expansion

drive picks up pace
India’s roads and highways expansion drive has led to a sharp annual growth in import of bitumen, a
refinery by-product used in laying the surface of roads and highways, opening up a growing market for
shipments from Iran, the UAE, Malaysia, Singapore, and Greece. Indian refiners, in the meantime, are
focusing on capturing the global market for high-end finished petroleum products.
While India’s refining capacity rose by 21% since 2010-11 to 234 million in 2017-18, bitumen
imports rose by a phenomenal 823% during the period to 905,000 tonnes as demand outpaced
production and refineries opted for maximising output of other high-revenue-yielding finished petroleum
products such as petrol, diesel and jet fuel with an eye on export markets, data from oil ministry’s arm
Petroleum Planning and Analysis Cell showed.
Imports from Malaysia and Singapore rose sharply in the April-February period of 2016-17 from a year
ago in rupee terms, showed data from the commerce ministry.
The pace of road construction has picked up in the last few years. During 2012-14, highway construction
was around 9km a day, which rose to 17.2km a day in 2015-16 and to approximately 22km a day
in 2016-17.
A record 47,350km of roads were constructed during 2016-17, the highest-ever in the last seven years,
under the Pradhan Mantri Gramin Sadak Yojana (PMGSY). This contrasts with 25,316km of roads built
in 2013-14, 36,337km in 2014-15 and 36,449km in 2015-16.
Experts said the trend of rising import of bitumen will get more pronounced in the coming years as the
country makes more rural roads to improve connectivity.
Binaifer F. Jehani, director, industry and customised research, CRISIL Research, said the demand for
bitumen is expected to grow at a compounded annual growth rate (CAGR) of 5.6% to 8 million tonnes
in 2020-21 due to a 6-7% CAGR in lane kilometers, largely driven by the expansion in rural roads.
“Imports are also expected to increase due to strong growth in bitumen demand but the major part of it will
continue to be supplied by domestic refineries,” said Jehani.
An official from the National Highways Authority of India (NHAI) said, on the condition of anonymity,
that import dependence will expose states, which rely on bitumen for laying roads, to price and currency
volatility, while the Central government is making a transition from bitumen to cement and concrete for
laying national highways. “Most of the road estimates being prepared for NHAI are now based on cement
and concrete, which costs roughly around 10-20% more,” said the official.
Refineries in the country, in the meantime, are eying the higher end of value-added refinery products with
the hope of becoming major regional suppliers. “Bitumen is said to be at the bottom of the barrel, which
implies its position among the set of refinery products. It, therefore, makes sense for refineries to maximise
production of higher-end items such as petrol and diesel, that could fetch them better margins. Production
of bitumen also depends on the kind of crude used,” said R.S. Butola, former chairman of Indian Oil Corp.,
the largest refiner in the country. That approach has resulted in Indian companies exporting 15.4 million
tonnes of petrol and 27 million tonnes of diesel in 2016-17, showing a growth of 14% and 34%,
respectively, from 2010-11 levels.

India, one of the country’s largest consumer of bitumen

in the world
India’s annual volume of bitumen required of the country of Iran. The best example of bitumen produced
in Iran with special barrels to the country of India. The maximum size of the bitumen supply
bitumen 60/70 countries India, bitumen 85/100. Types of bitumen for road construction in India. Very
high-quality bitumen to India each year, causing about their need to buy from Iran. In this way the
manufacturers’ bitumen one of the largest suppliers of this product to India. In Iran, the world’s largest
manufacturers and suppliers have been able to bitumen a very good performance for customers in India to
go along.
Iran Bitumen Export Share Market 2016
The Asia Pacific with 50% Export Share, is Biggest Market of Iran

The Most Iran Export Share Countries 2016

India Is Always The major Market Of Iran Bitumen.

Iran Bitumen Asia Pacific Market Share;2016

Total Export : 1,628,969MT; Ref; Iran Customs
India Petroleum Products Import at 2016
At 2016; Bitumen accompanying with Fuel oil has third ranking of imported Petroleum Products to India.

Bitumen Import to India vs Export from Iran

During 5 Years; 86% of imported bitumen to India was from Iran
Monthly India Bitumen Demand
During 2015-2017

From 2013 to 2016, about 86% of imported Bitumen to

India was from Iran; But at 2017 it decreased to 79%.
Asphalt Market - Drivers and Forecasts by Technavio

Technavio has published a new report on the global asphalt market from 2017-2021. (Graphic:
Business Wire)


 


April 26, 2017 01:43 PM Eastern Daylight Time

LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global asphalt market to grow
at a CAGR of over 4% in terms of volume, during the forecast period.

Global asphalt market to grow at a CAGR of over 4% in terms of volume,

during the period 2017-2021.
Tweet this

The research study covers the present scenario and growth prospects of the
global asphalt market for 2017-2021. The analysts have presented the various facets of the
market with a focus on identifying the key industry influencers.

The market is expected to witness consistent growth during the forecast period, backed
by increasing growth in the paving and construction industry, especially in developing
 economies such as China, Brazil, and India. Based on application, the global asphalt
market for roadways had the highest share of the overall market in 2016.

Looking for more information on this market? Request a free sample report

Technavio’s sample reports are free of charge and contain multiple sections of the report
including the market size and forecast, drivers, challenges, trends, and more.

Technavio chemicals and materials analysts highlight the following three factors that are
contributing to the growth of the global asphalt market:

Furtherance of transport sector and infrastructural development

Several countries still face the problem of unpaved roads that stretch for sizeable distances.
Unpaved roads account for about 4.3 million kilometers, globally, of which the US accounts for
about 2 million kilometers. Countries such as China, Canada, India, Germany, and Switzerland
also have large stretches of unpaved roads.

Chandrakumar Badala Jaganathan, a lead specialty chemicals research analyst at Technavio,

says, “The growing infrastructural development in different countries, across the globe, demands
an advancement of the transport sector to promote economic development. Population explosion
is another important factor in the advancement of the transport sector.”

Growing demand for asphalt emulsions

An asphalt emulsion refers to the combination of asphalt cement, water, and emulsifying agent
(surfactant). It is used to recycle old pavements with reduced time and cost. Its growing demand
across countries (especially in the US) drives the global asphalt market. The demand for asphalt
emulsions is expected to rise faster as compared with other asphalt components during the
forecast period, driven by the increasing global demand for recycling of bridges and highways.

An upsurge in the use of reclaimed asphalt pavement

Government funding, coupled with an increase in the use of reclaimed asphalt pavement (RAP),
drives the global asphalt market. RAP refers to the removal and reprocessing of pavement
materials. Asphalt and its aggregates generated during the process of removal of pavements are
used in the reconstruction or resurfacing.

The support rendered by governments and other agencies acts as a driving factor for potential
vendors to enter the market and get a foothold in the business. For instance, the Federal
Highway Administration (FHWA) actively assists and promotes the recycling of pavement
materials to conserve nature, decrease waste, and employ cost-effective solutions for
constructing highways in the country.

Top vendors:

 BP
 CEMEX
 Exxon Mobil
 Imperial Oil
 Royal Dutch Shell

A record 47,350km of roads were constructed during 2016-17, the highest-ever in the last seven
years. Photo: Mint

Bitumen imports jump as highway expansion

drive picks up pace
2 min read . Updated: 10 May 2017, 03:42 AM ISTJyotika Sood, Gireesh Chandra Prasad

India's bitumen imports have risen 823% since 2010-11 to 905,000 tonnes, road construction
pace quickened to 22 km per day in FY17 from 17.2 per day in FY16
Topics

mint-india-wire plain-facts Indiabitumen importsroad constructionhighway

expansionNHAIinfrastructure

New Delhi: India’s roads and highways expansion drive has led to a sharp annual
growth in import of bitumen, a refinery by-product used in laying the surface of
roads and highways, opening up a growing market for shipments from Iran, the
UAE, Malaysia, Singapore and Greece. Indian refiners, in the meantime, are
focusing on capturing the global market for high-end finished petroleum products.
While India’s refining capacity rose by 21% since 2010-11 to 234 million in 2017-
18, bitumen imports rose by a phenomenal 823% during the period to 905,000
tonnes as demand outpaced production and refineries opted for maximising output
of other high-revenue-yielding finished petroleum products such as petrol, diesel
and jet fuel with an eye on export markets, data from oil ministry’s arm Petroleum
Planning and Analysis Cell showed.
Imports from Malaysia and Singapore rose sharply in the April-February period of
2016-17 from a year ago in rupee terms, showed data from the commerce ministry.
The pace of road construction has picked up in the last few years. During 2012-14,
highway construction was around 9km a day, which rose to 17.2km a day in 2015-
16 and to approximately 22km a day in 2016-17.
A record 47,350km of roads were constructed during 2016-17, the highest-ever in
the last seven years, under the Pradhan Mantri Gramin Sadak Yojana (PMGSY).
This contrasts with 25,316km of roads built in 2013-14, 36,337km in 2014-15 and
36,449km in 2015-16.
Experts said the trend of rising import of bitumen will get more pronounced in the
coming years as the country makes more rural roads to improve connectivity.
Binaifer F. Jehani, director, industry and customised research, CRISIL Research,
said the demand for bitumen is expected to grow at a compounded annual growth
rate (CAGR) of 5.6% to 8 million tonnes in 2020-21 due to a 6-7% CAGR in lane
kilometres, largely driven by the expansion in rural roads . “Imports are also
expected to increase due to strong growth in bitumen demand but major part of it
will continue to be supplied by domestic refineries," said Jehani.
An official from the National Highways Authority of India (NHAI) said, on the
condition of anonymity, that import dependence will expose states, which rely on
bitumen for laying roads, to price and currency volatility, while the Central
government is making a transition from bitumen to cement and concrete for laying
national highways. “Most of the road estimates being prepared for NHAI are now
based on cement and concrete, which costs roughly around 10-20% more," said the
official.
Refineries in the country, in the meantime, are eying the higher end of value-added
refinery products with the hope of becoming major regional suppliers. “Bitumen is
said to be at the bottom of the barrel, which implies its position among the set of
refinery products. It, therefore, makes sense for refineries to maximise production
of higher end items such as petrol and diesel, that could fetch them better margins.
Production of bitumen also depends on the kind of crude used," said R.S. Butola,
former chairman of Indian Oil Corp., the largest refiner in the country. That
approach has resulted in Indian companies exporting 15.4 million tonnes of petrol
and 27 million tonnes of diesel in 2016-17, showing a growth of 14% and 34%,
respectively, from 2010-11 levels.

The Most Attractive Destinations Iran Export (In 1396

(From 21 March 2017 to 2018)