Bangladesh Bitumen Import Demand
Last updated: 2026-10-03
Bangladesh Bitumen Import Demand: 2025 Snapshot
Bangladesh imported approximately 1.35 million metric tons of bitumen in FY2024–25, with an estimated import bill of USD 620–680 million at an average landed cost of USD 460–500 per metric ton. Demand is growing at 6–8% annually, driven by road infrastructure projects under the Road Transport and Highways Division (RTHD), and the country is expected to cross 1.6 million tons by FY2027–28. Roughly 85–90% of national consumption is met through imports, with the remainder covered by limited domestic refining output from Eastern Refinery Limited (ERL) and private blenders.
Why Bangladesh Relies on Imported Bitumen
Bangladesh has minimal proven crude oil reserves and no dedicated bitumen-grade crude supply chain. Eastern Refinery Limited, the country's only significant state refinery, produces only a small fraction of national bitumen needs — historically under 100,000 tons per year, and often less when crude slates are optimized for fuel rather than asphalt. This structural gap makes imports the default supply channel.
Key structural drivers:
- Infrastructure spending surge: The Annual Development Programme (ADP) allocated BDT 2.5+ trillion (≈ USD 21 billion) in FY2024–25, with transport and communication receiving the largest single share (roughly 25–28%).
- Road network expansion: Over 4,000 km of national highways are either under construction, upgrading, or rehabilitation, plus major corridors like the Dhaka–Chattogram Expressway and the Padma Bridge approach roads.
- Urbanization and rural connectivity: Upazila and union road paving under LGED programs adds steady baseline demand for penetration-grade and PG-grade binders.
- No substitutes at scale: Polymer-modified bitumen (PMB) and crumb rubber asphalt remain niche — less than 10% of total consumption — so conventional grades (60/70, 80/100, VG-10, VG-30) dominate.
Domestic supply vs. demand (approx.):
| Source | Volume (tons/year) | Share |
|---|---|---|
| Eastern Refinery Ltd (ERL) | 60,000–90,000 | 5–8% |
| Private blenders (from imported base stock) | 40,000–70,000 | 3–6% |
| Direct imports (bulk + drums) | 1,150,000–1,250,000 | 85–90% |
| Total | ~1,350,000 | 100% |
Import Volume, Value, and Growth Trends
Bangladesh's bitumen import curve has been steep since FY2018–19. The COVID dip in FY2020–21 was followed by an aggressive rebound as stimulus-funded road projects accelerated.
| Fiscal Year | Import Volume (tons) | Avg. Landed Price (USD/ton) | Import Value (USD mn) |
|---|---|---|---|
| FY2020–21 | 780,000 | 380 | ~296 |
| FY2021–22 | 980,000 | 500 | ~490 |
| FY2022–23 | 1,120,000 | 560 | ~627 |
| FY2023–24 | 1,280,000 | 470 | ~602 |
| FY2024–25 (est.) | 1,350,000 | 460–500 | ~620–680 |
| FY2025–26 (proj.) | 1,450,000–1,500,000 | 440–480 | ~650–720 |
| FY2027–28 (proj.) | 1,600,000+ | 430–470 | ~700–750 |
Notable patterns:
- Volume growth has averaged 6–8% year-on-year over the last five fiscal years.
- Price volatility (2022–23 spike) was driven by global crude benchmarks and freight disruption, not local demand.
- Import value growth is slower than volume growth since 2022–23 due to softening prices — a net positive for Bangladeshi contractors.
Where Bangladesh's Bitumen Comes From
Bangladesh imports bitumen from a diversified but concentrated supplier base. Middle East refiners dominate bulk supply, while Asian suppliers capture drum and specialty segments.
| Country | Est. Share of Bangladesh Imports | Typical Grades | Mode |
|---|---|---|---|
| UAE | 30–35% | 60/70, 80/100, VG-30 | Bulk vessel + drums |
| Saudi Arabia | 20–25% | 60/70, VG-30 | Bulk vessel |
| Singapore | 12–15% | 60/70, PG grades, PMB | Bulk vessel + ISO tanks |
| Iran | 8–12% | 60/70, 85/100 | Bulk + drums (via re-export) |
| India | 5–8% | VG-10, VG-30, PMB | Land border + bulk |
| Thailand / Malaysia / South Korea | 8–12% | Specialty, PMB, drums | Containers + bulk |
| Others (Bahrain, Kuwait, Oman) | 5–8% | 60/70 | Bulk vessel |
Supply chain considerations:
- Chattogram Port handles the majority of bulk and drum imports; Mongla Port is gaining share for western-region projects.
- Chittagong Customs House processes most bitumen HS code entries (HS 2713.20) — valuation disputes and demurrage are recurring cost factors.
- Payment terms are typically LC at sight or usance LC 60–90 days, with select buyers using CAD for drum cargoes.
- Bagging and drumming at port-adjacent facilities adds USD 25–45/ton to delivered cost versus bulk.
Price Drivers and Landed Cost Breakdown
Bangladesh importers price bitumen on a CIF Chattogram basis plus port, duty, and inland logistics. The table below models a typical landed cost for 60/70 penetration grade in 2025.
| Cost Component | USD per ton | Notes |
|---|---|---|
| FOB (UAE/Saudi origin) | 390–420 | Linked to crude + refinery premium |
| Ocean freight (bulk) | 25–40 | Varies by vessel size and route |
| Insurance | 3–5 | Marine cargo cover |
| CIF Chattogram | 420–465 | Benchmark for LC pricing |
| Import duty + AIT + VAT | 30–45 | HS 2713.20; effective rate varies by importer status |
| Port charges, handling, demurrage | 10–20 | Depends on berth availability |
| Drumming/bagging (if applicable) | 25–45 | Only for packaged cargo |
| Inland transport to depot/site | 15–30 | Chattogram to Dhaka ≈ USD 18–25/ton |
| Landed cost (bulk, Dhaka) | 460–520 | Working range for most transactions |
Primary price drivers in 2025:
- Crude benchmarks: Brent and Dubai crude moves pass through to bitumen with a 2–4 week lag.
- Refinery economics: Middle East refiners prioritize fuel yields; bitumen availability tightens seasonally.
- Vessel availability and freight rates: Bulk carrier tightness adds USD 5–15/ton unpredictably.
- BDT/USD exchange rate: A 5% depreciation adds roughly USD 20–25/ton to landed cost.
- Seasonal construction window: Demand peaks November–April (dry season), pushing premiums up 3–5%.
- Government project timing: Sudden tender releases can spike spot prices within weeks.
Demand Outlook to FY2028 and Beyond
Bangladesh's bitumen import demand is on a structural uptrend. Several multi-year programs anchor the forecast:
- Dhaka–Chattogram Expressway: one of the largest single asphalt consumers, requiring hundreds of thousands of tons over its construction cycle.
- Padma Rail Link and bridge approaches: high-spec binder demand, including PMB in select sections.
- Sylhet–Chattogram and Dhaka–Sylhet corridors: four-laning and strengthening projects.
- Rural road paving under LGED: consistent low-to-mid grade consumption.
- Airport and port expansion: runway and terminal apron paving (Cox's Bazar, Saidpur, Matarbari).
FY2028 forecast snapshot:
| Metric | FY2024–25 | FY2027–28 (proj.) | CAGR |
|---|---|---|---|
| Import volume (tons) | 1,350,000 | 1,600,000–1,650,000 | 6.5–7.5% |
| Import value (USD mn) | 620–680 | 700–780 | 4–6% |
| PMB share of demand | <10% | 12–15% | — |
| Bulk vs. drum split | 65:35 | 70:30 | — |
Risks to the outlook:
- Global crude price spikes above USD 100/bbl would compress construction budgets.
- BDT depreciation beyond 10% annually would inflate landed costs.
- Political or logistics disruption at Chattogram Port could delay cargoes by 15–30 days.
- Slow ADP execution (a recurring pattern) could push volumes below forecast in any given year.
Opportunities:
- Interest in polymer-modified and crumb rubber asphalt is rising as durability requirements tighten.
- Private blenders are investing in capacity to convert imported base stock into branded PG grades.
- Direct refiner-to-contractor supply agreements are reducing intermediary margins.
FAQ: Bangladesh Bitumen Import Demand
How much bitumen does Bangladesh import annually?
Bangladesh imports approximately 1.3–1.4 million metric tons of bitumen per year, with FY2024–25 estimated at around 1.35 million tons. Volume is growing at 6–8% annually and is projected to reach 1.6 million tons by FY2027–28.
Which countries supply most of Bangladesh's bitumen imports?
The UAE and Saudi Arabia together supply roughly 50–60% of Bangladesh's bitumen imports, followed by Singapore (12–15%), Iran (8–12%), and India (5–8%). Middle East refiners dominate bulk cargoes, while Asian suppliers lead in drums and specialty grades.
What is the current landed price of bitumen in Bangladesh?
In 2025, bulk 60/70 bitumen lands in Dhaka at roughly USD 460–520 per metric ton, including CIF Chattogram, duties, port charges, and inland transport. Drum cargoes typically cost USD 25–45/ton more due to bagging and handling.
Why does Bangladesh import so much bitumen instead of producing it locally?
Eastern Refinery Limited and private blenders cover only 10–15% of national demand, leaving 85–90% to imports. Bangladesh lacks dedicated bitumen-grade crude supply and refinery capacity, so imports are the only way to meet road construction needs.
What is the outlook for Bangladesh bitumen import demand through 2028?
Demand is projected to reach 1.6–1.65 million tons by FY2027–28, a CAGR of 6.5–7.5%. Growth is anchored by the Dhaka–Chattogram Expressway, Padma Rail Link, national highway four-laning, and LGED rural road programs.
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