Bitumen Consumer Warning!
Bitumen Consumer Warning!
Mixed Bitumen and it’s Alleged Suppliers
Recently, reports of upsetting outcomes of Road Construction Work in Africa, Indonesia, Bangladesh, Pakistan and China, among other nations which used Mixed Bitumen, including countries such as Iraq, and Afghanistan have been emerging. This event has consequently exposed the methods being used by the rising rings of unethical Bitumen suppliers to bring their costs down to below all other genuine suppliers.
Mixed Bitumen Suppliers main victims are Road and Bridge Construction Companies. Due to their demand for very low Bitumen prices there are many counterfeit groups emerging in today’s Bitumen market, who Mix Bitumen “like products” such as Used Engine Oil to meet the market’s target price demands. This is why the older and legitimate suppliers are having complications contending with Mixed Bitumen Suppliers in with regards to their sale’s prices. For this, we have chosen to fight them through Educating bitumen consumers worldwide. Based on theory, in order to avoid bankruptcy some older companies may have adapted the method of Mixing to survive. Our aims to inform you on what these handfuls of smugglers are doing in order to save majorly on their costs while generating a Deceptive benefit for their circle. Aside from pouring Sand inside of their Bitumen drums to make their drums heavier, they are placing a unsafe amount of Fuel Oil (Mazut) in the base of their drums and then packaging the rest with 100% pure Bitumen. Some say what deterrence are inspection companies providing for end buyers? It has been reported to us that in the past until just weeks ago some Inspection companies have measured up their methods of inspection by taking samples at the port rather than the Mine.
Results of Using Mixed Bitumen Mixed Bitumen is not Petroleum Based Bitumen, has a very low Viscosity, which means it has little binding power. This means the asphalt will not hold together as it should and eventually pieces of Gravel and discoloration will surface. Mixed bitumen, may generate clogs and blockage in equipment. Because, the cost of Fuel Oil (Mazut) is far less in price than that of Bitumen, by Mixing even 10% to Bitumen they are actually saving a 37.50 USD per MT in Bulk Bitumen cost which based on today’s market rates. Imagine them mixing a larger portion of their drums with Fuel Oil (Mazut). This will equal an incredible figure from which they will offer a deceptive discount to all of their clients in the aims of creating confusion and mistrust against genuine Bitumen Supplier’s as they will appear irrationally high priced. Any time they wish those which Mix for profit, can outbid any Official Bitumen supplier. Our estimates in the past had been 20% worth of impurities which would save them over 70.00 USD per MT However; today we are learning that these hand full of suppliers are getting braver each day, and know that their day in court is coming and intend to gather as many sales as possible through their illegal activities in the shortest period of time possible before they are fully exposed. Our aim is not to create fear without basis but to establish a common awareness among our clients and protect the proud name of Iranian Bitumen Suppliers who do not and are known for their High Quality Standards and Service.
If anyone is offering Bitumen at 5.00 to 10.00 USD more or less than a Reliable “Bitumen Supplier”, we can deduct it is expected, but when someone offers discounts of 30.00 USD, 50.00, or even more on a per MT basis compared to a reliable supplier, then they need to be approached by their clients with extreme caution.
An average profit margin of a Bitumen supplier is no more than 15.00 USD per MT inclusive of 5.00 USD per MT for unforeseen costs. We reveal this margin to you so that you will not be easily deceived by very large discounts made to you in the future. We ask that buyers educate themselves through the many logical, available facts.
Mixed Bitumen suppliers may be misleading inspection companies after their inspection by switching drums which have been prepared with high quality Bitumen with those which have been packaged with Mixed Bitumen. It has been reported that some Companies are selling bitumen on a Gross Basis. Meaning, the buyer also pays for the steel used to make their drums which averages 27.50 USD per Metric Tons.