C1 Methodology and Specifications Guide ---Bitumen

Definition:
C1 assesses prices of bitumen and modified asphalt with petroleum bitumen as major feedstock. There’re four categories: heavy-duty paving bitumen, regular bitumen, road bitumen and modified bitumen.
Bitumen is the residual obtained by fractional distillation of crude oil. It’s a type of black or black brown liquid, semisolid or solid in normal temperatures. Major contents are hydrocarbons and non-hydrocarbon ramifications dissolvable in trichloroethylene. The nature and components of bitumen vary on crude nature and refining proceeding.  

Modified bitumen is a mixture of bitumen and modifiers, including rubber, resin, macromolecule polymer and rubber powder etc, or slightly oxygenated bitumen. Modified bitumen has enhanced nature in endurance and antifriction, meaning that the product won’t soften in high temperature or crack in low temperature.   

Uses:
Bitumen is primarily used for paving roads. Its other uses are for general waterproofing products, including sealing flat roofs, waterproof boats, and even as a coating for buildings.

Bitumen specifications

Quality standard of heavy-duty paving bitumen （GB/T 15180-2000）
Item		AH-90	AH-70	Test method
Penetration（25℃，100g，5s），0.1mm		80-100	60-80	GB/T 4509
Ductility（15℃，5cm/mm），cm	≧	100	100	GB/T 4508
Softening point（ring-ball method），℃	≧	42	43	GB/T 4507
Dissolubility（trichloroethylene）	≧	99	99	GB/T 11148
Flash point（open mouth），℃	≧	230	230	GB/T 267
Density（25℃），g/cm3		report	Report	GB/T 8928
Wax content（distillation），％	≦	3	3	GB/T 0425
Thin-Film Oven Test，163℃，5h
Quality change (％)	≦	1	0.8	GB/T 5304
Penetration rate (％)	≦	50	55	GB/T 4509
Ductility（25℃，5cm/mm），cm	≧	75	50	GB/T 4508
Ductility（15℃，5cm/mm），cm		report	Report	GB/T 4508

Quality standard of regular road bitumen GB/T 15166-2000）
Item		100＃A	100＃B	Test method
Penetration（25℃，100g，5s），0.1mm		90-120	80-120	GB/T 4509
Ductility（25℃，5cm/mm），cm	≧	90	60	GB/T 4508
Softening point（ring-ball method），℃		42-52	42-52	GB/T 4507
Dissolubility（trichloroethylene）	≧	99	99	GB/T 11148
Flash point（open mouth），℃	≧	230	230	GB/T 267
Evaporation outage（163℃，5h），％	≦	1	1	GB/T 11964
Penetration rate after evaporation %	≧	65	65	GB/T 4509

Quality standard of bitumen for roofing and waterproofing（GB/T494-1998）
Item		# 10	#30	Test method
Penetration (25℃,100g,5s),0.1mm		10～25	25～40	GB/T 4509
Ductility (25℃),cm	≧	1.5	3	GB/T 4508
Softening point（ring-ball method,℃	≧	95	70	GB/T 4507
Dissolubility (nitrochloroform, trichloroethylene , tetrachloride carbon or benzene),%	≧	99.5	99.5	GB/T 11148
Evaporation Outage (163℃,5h),%	≦	1	1	GB/T 11964
Penetration rate after evaporation %	≧	65	65	GB/T 4509
Flash point (open mouth),℃	≧	230	230	GB/T 267
Brittle point,℃		report	report	GB/T 4510

Quality standard of polymer modified bitumen
Item		SBS(GroupⅠ)	SBR(Group Ⅱ)	Test method
Penetration (25℃,100g,5s),0.1mm	≧	30	60	T 0604
Penetration index PI	≧	-1.2	-1.0	T 0604
Ductility（5℃，5cm/mm），cm	≧	20	40	T 0605
Softening point (Ring-ball method)，℃	≧	45	45	T 0605
Viscosity 135℃	≦	3	3	T 0625 or T 0619
Flash point (open mouth),℃	≧	230	230	T 0611
Dissolubility	≧	99	99	T 0607
Elastic restitution 25℃	≧	55	--	T 0662
Toughness, N-m	≧	--	5	T 0624
Tenacity ,N-m	≧	--	2.5	T 0624
Storage stability segregation, 48h softening point  change	≦	2.5	--	T 0661
Residuals after TFOT(or RTFOT)
Quality change,%	≦	±0.1	±0.1	T 0610 or T 0609
Penetration rate 25℃,%	≧	55	50	T 0604
Ductility（5℃，5cm/mm），cm	≧	15	10	T 0605

Time of assessment
C1 assesses bitumen price every Monday, Wednesday and Friday

C1 assesses following overseas bitumen:
Singapore bitumen FOB price
Singapore bitumen CFR South China price
Singapore bitumen CFR East China price
Singapore bitumen CFR North China price
Thailand bitumen FOB price
Thailand bitumen CFR South China price
Thailand bitumen CFR East China price
Thailand bitumen CFR North China price
Taiwan bitumen FOB price
Taiwan bitumen CFR South China price
Taiwan bitumen CFR East China price
Taiwan bitumen CFR North China price
South Korea bitumen FOB price
South Korea CFR South China price
South Korea bitumen CFR East China price
South Korea bitumen CFR North China price

 

Assessments on domestic markets

1. Ex-terminal price of imported heavy-duty paving bitumen for truck delivery in South China
2. Ex-terminal price of imported heavy-duty paving bitumen for truck delivery in East China
3. Ex-terminal price of imported heavy-duty paving bitumen for truck delivery in North China

1. China average ex-terminal price of domestic AH-70 and AH-90 for truck delivery
2. Ex-terminal price of domestic AH-70 and AH-90 for truck delivery in South China
3. Ex-terminal price of domestic AH-70 and AH-90 for truck delivery in East China
4.  Ex-terminal price of domestic AH-70 and AH-90 for truck delivery in Yangtze River Delta
5. Ex-terminal price of domestic AH-70 and AH-90 for truck delivery in Shandong
6. Ex-terminal price of domestic AH-70 and AH-90 for truck delivery in Northern China
7. Ex-terminal price of domestic AH-70 and AH-90 for truck delivery in Northwest China
8. Ex-terminal price of domestic AH-70 and AH-90 for truck delivery in Northeast China
9. Ex-terminal price of domestic AH-70 and AH-90 for truck delivery in North China

 

1. Ex-terminal price of regular bitumen for truck delivery in South China
2. Ex-terminal price of regular bitumen for truck delivery in East China
3. Ex-terminal price of regular bitumen for truck delivery in Yangtze River Delta
4. Ex-terminal price of regular bitumen for truck delivery in Shandong
5. Ex-terminal price of regular bitumen for truck delivery in Northern China
6. Ex-terminal price of regular bitumen for truck delivery in Northwest China
7. Ex-terminal price of regular bitumen for truck delivery in Northeast China
8. Ex-terminal price of regular bitumen for truck delivery in North China

1. Ex-terminal price of PMB for truck delivery in South China
2. Ex-terminal price of PMB for truck delivery in East China
3. Ex-terminal price of PMB for truck delivery in North China
4. Ex-terminal price of roofing and waterproofing bitumen for truck delivery in South China
5. Ex-terminal price of roofing and waterproofing bitumen for truck delivery in East China
6. Ex-terminal price of roofing and waterproofing bitumen for truck delivery in North China

 

Assessment principles

Timing:
C1 assesses the markets based on the Market On Close, or MOC, system, in which the assessment reflects the most possible tradable range of the market as of the close of the trading day, under certain principles. C1 selects 16:30 Beijing time as the MOC.
Assessments are based on information provided by market players including refineries, users, traders and third party service providers.

Specifications: see tables on quality standards

Delivery: within 30 calendar days after reporting date
Payment term: 90 days after bill of lading on Letter of Credit (international markets), cash (domestic markets)

Delivery volume: 1,000-5,000mt

General principles:

C1’s assessments are based on a wide variety of information collected from the markets. Sources of the information include producers, traders, end users as well as service providers to buyers or sellers. Information is collected through telephone, short message, email, instant messenger and face-to-face discussions etc.

C1’s assessments not only reflect price of deals done but also consider bids and offers. C1 primarily considers prices of deals meeting its assessment principles. In absence of transactions or transaction meeting C1’s assessment principles, the range of the assessment is below or equivalent to the spread between the highest bid and the lowest offer.

Both fixed-price deals and floating-price deals are considered in assessments.

In any of the following cases, C1 has the right not to consider deals involved in its information sources of assessments: 

1. The deal is done in aberration, for example, the seller is in danger of bankruptcy and in fire- sale.
2. The deal is considered done under extraordinary conditions, such as for compensation or second settlement etc.
3. The deal is widely considered unrepresentative. 

Generally, C1 gives special notes in its reports if a deal is not considered in market assessments, but it’s not that all deals excluded in assessments are given notes.

C1’s reports can mention deals confirmed by either side of the deal or any other credible market participants, or deals officially reported and under negotiation between the buyer and seller but not confirmed by any other parties, or deals only rumored and spread among third parties but not confirmed by the buyer or seller.

Taxes
Import tariff: 8%. Exceptions: Cargoes originated from ASEAN countries, including Brunei, Indonesia, Malaysia, Burma, the Philippines, Singapore, Thailand and Vietnam, enjoy zero import tariff in 2009. Cargoes originated from Bangladesh, India, Laos, South Korea and Sri Lanka enjoy 5.6% import tariff this year.
Value added Tax (VAT): 17%

Exchange rate:
C1 generally employs data published by the People’s Bank of China, the central bank, who usually publishes exchange rates at around 10:00 Beijing time of the trading day.
The exchange rate used by C1 is not the average after publication of a previous report, but the bid/offer average at a specific time of a specific date. The exchange rates C1 lists only serve as  references, and could be different from what provided by banks or other financial institutions.

Updated on Mar 6, 2009