Australia’s bitumen import demand is expected to drop by 20% in 2024 due to prolonged funding challenges and a shortage of large road projects, Argus Media reports. Since the COVID-19 pandemic, road maintenance budgets have been reduced, with many local councils reallocating funds to other sectors like healthcare. As a result, bitumen consumption is forecast to decline by 10-20% compared to last year. Imports have already fallen, with Australia bringing in 488,874 tons from January to August 2024, down from 605,283 tons during the same period in 2023. Importers have enough stock to meet demand through January 2025, and there is no immediate need for additional spot cargoes.
In contrast, New Zealand is seeing increased bitumen demand, driven by strong domestic consumption and favorable dry weather for road construction. Imports are expected to rise by 3-4% in the final months of 2024, with total imports projected to range between 160,000 and 170,000 tons, up from 180,576 tons in 2023. Importers are preparing for peak demand in early 2025, when paving activity typically surges.
As noted by Argus Media, while Australia faces a decline in imports due to financial pressures, New Zealand is poised for growth, benefiting from favorable conditions for roadworks.
