Algerian bitumen importers are preparing to restart imports from Spain, marking the end of a two-year halt on trade between the countries. The Algerian government recently lifted restrictions that were imposed in June 2022 after Spain publicly backed Morocco’s Western Sahara autonomy plan, leading to the suspension of a friendship treaty and halting bitumen shipments. In a new announcement from the Bank of Algeria on November 6, Algerian firms were given the green light to resume trade with Spanish suppliers under standard transaction rules.
Private Algerian importers operating from key western ports, such as Ghazaouet, Oran, and Arzew, are expected to benefit significantly from this reopening. These ports are located close to Spain’s bitumen export terminals in Tarragona, Huelva, and Cadiz, making Spain a cost-effective option for Algerian imports. Shipping costs from Tarragona to Ghazaouet, for example, are approximately $35 per ton, compared to around $50 per ton for similar routes from Augusta, Italy. Despite these favorable conditions, the full resumption of imports may not occur until early 2025, as companies navigate clearance processes and evaluate current market trends, according to Argus Media.
Favorable market dynamics have further incentivized the return to Spanish imports. Recent price drops in Mediterranean high-sulfur fuel oil (HSFO) and reduced cross-Mediterranean freight rates have made Spanish bitumen more attractive to Algerian buyers. Spanish free-on-board (FOB) cargo premiums have declined from around $10 per ton in mid-October to $2-3 per ton, and the overall FOB price for Spanish bitumen exports fell from $498-499 per ton to $458 per ton during this period.
While Algeria has some domestic refining capacity, it relies on imports to fully meet its demand, particularly for infrastructure and road construction projects. The country’s strategic location makes it an important player in the Mediterranean bitumen market, despite its regional association with the broader Middle East and North Africa (MENA) region. Algeria’s primary focus on oil and gas exports often limits local bitumen production, making external sources like Spain a vital supply line.
