The determination process of industrial bitumen pricing
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Posted On :
Oct-31-2011
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Article Word Count :
525
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The Soaring Oil costs however assures the variation in the industrial bitumen price, there is not a good system to get the bitumen price by now.
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The Soaring Oil costs however assures the variation in the industrial bitumen price, there is not a good system to get the bitumen price by now. The bitumen industry is getting mature and liquid. The majority of the exporting countries include Singapore, Iran, Saudi Arabia, Egypt, Thailand in this region has several inputs and the array changes considerably.
For industrial bitumen, there are no listed prices other than for some gathered prices from few paid subscription providers ; entrepreneurs depend on certain pricing ways that guide various published crude qualities.
Industry pricing is periodical with greater rates while peak season like summer being the norm as a result of higher demand for industrial bitumen and other bitumen derived goods.
Essentially, industrial bitumen is usually mixed with diluent (typically in the form of C5 or synthetic light crude) with a purpose to allow its transport through pipeline to tankers.
Thus, the useful field bitumen price is also straight impacted by the input price of the diluent required, the demand and price of which is also periodical in nature (in winter as colder temperatures demand additional diluent for shipping).
Hence, bitumen price is higher in summer and during large breakoff by the refineries and not reflective of the yearly average recognized cost or the economics of the business over-all.
The solid bitumen demand hinders the valuable field prices through peak season for many factors. Moreover to the common periodic difficulties, increase in bitumen demand and the premium for diluent was important as an outcome of multiple situations including production disturbances at a localized refinery.
The deficiency of a commonly popular strategy to the determination of appropriate bitumen price, combined with the costing seasonality (which has not been rightly sorted out ) indicated that many meanings been around as to how year-end bitumen price should be discovered, for the reason for filing to the regulating professionals, too.
With vast amounts of barrels of potential and vast amounts of dollars of intended capital expense, the industrial bitumen assets are greatly considered to be a cornerstone of future energy necessities and are alluring notable awareness from abroad legal powers as well.
It is in the right fascination to all shareholders (traders, capital markets, directorial systems, manufacturers and the general public overall) that a year-round bitumen price procedure be formed that reasonably signifies the standard market circumstances and is not unduly affected by seasonal demand, weather-driven or cataclysmic price fluctuations.
Actually, the adoption of the proposed technique for all crude traits would have small or no impact on claimed proved reserve quantities for all sorts, industrial bitumen excepted. For no other reason than industrial bitumen only is subject to the extensive seasonality in noticed pricing over calendar.
A few industry viewers intend to determine the continuous bitumen price by using, for the benchmark reference pricing, the listed pricing for the crude oil after applying historical alterations (that means the average of the changes for the 12 months preceding the date of the estimate) for transportation and for quality, which produce the price differentiation between crude oil and industrial bitumen.
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Article Source :
http://www.articleseen.com/Article_The determination process of industrial bitumen pricing_98039.aspx
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Author Resource :
The author is a professional of Industrial bitumen and presently working in Bengal Bitumen.This article is about estimating Bitumen price.
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Keywords :
industrial bitumen, bitumen price,
Category :
Business
:
Entrepreneurs
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