Due to the war in the Middle East, the world is facing a bitumen shortage, according to the FT
The war in the Middle East has caused widespread disruptions in the supply of bitumen—a key material for asphalt production. Due to the shortage of raw materials, countries around the world are experiencing delays and complications in road construction and repair.
This is reported by the Financial Times.
The situation is particularly dire in India, which imports about 40% of its bitumen almost entirely from the Persian Gulf countries. According to analysts, bitumen exports to India have dropped significantly: in March, they fell to 7,000 tons, compared to 32,000 tons a year earlier. As a result, roadwork has already been halted or delayed in several Indian states.
Problems are also being reported in South Korea. There, certain infrastructure projects are being delayed, including the construction of a 3-kilometer Peace Bridge in Incheon. The reason is supply disruptions and a sharp rise in the cost of asphalt concrete.
In Italy, contractors are also reporting rising costs and demanding contract revisions due to the rising cost of materials.
Local authorities confirm that the situation is being exacerbated by rising prices for key resources, particularly steel and bitumen, which is putting additional pressure on road budgets.
As a reminder, oil prices fell on Friday following signs of a possible easing of tensions in the Middle East amid the announcement of a 10-day ceasefire between Lebanon and Israel.
The United Arab Emirates government has begun preliminary consultations with the United States regarding the provision of emergency financial aid.
