Key facts
- India's bitumen imports decreased by 50% in the first half of 2026 compared to the previous year.
- The reduction in imports is attributed to the US-Iran conflict and a US naval blockade.
- Vessel logistics were disrupted, leaving many chartered ships stranded.
- Exports from Iran, a primary bitumen supplier to India, were significantly impacted.
- Limited alternative supply sources were available in Europe, Asia, and Southeast Asia.
- Some buyers sourced bitumen from South China, with approximately 5,000 tons imported in June.
India's bitumen imports experienced a significant 50% decline in the first half of 2026, primarily due to disruptions stemming from the US-Iran conflict and a subsequent US naval blockade in the region. This geopolitical situation severely impacted vessel logistics, leaving many ships chartered by Indian companies stranded.
Total imports for January-June 2026 amounted to 905,000 tons, a stark contrast to the 1.81 million tons recorded in the same period of the previous year, according to data from Global Trade Tracker (GTT). The second quarter of 2026 saw an even steeper drop, with imports falling by approximately 68% to 271,356 tons compared to 857,419 tons a year prior.
Exports from Iran, a crucial supplier of bitumen to India, were heavily affected by the conflict and the de facto closure of the Strait of Hormuz since March. The US blockade in the Mideast Gulf further exacerbated supply issues. While some vessels managed to cross the blockade in April, overall import volumes remained low as vessel owners feared US attacks, with US forces reportedly attacking at least two bitumen tankers in June for attempting to evade the blockade.
India, being a net importer of bitumen, faced challenges in securing alternative supplies due to unviable seaborne prices in Europe and Asia, coupled with tight supply in Southeast Asia. However, some buyers with urgent needs turned to South China, importing around 5,000 tons in June. This marked the second such cargo from South China this year, highlighting regional supply constraints.
Official import data for July and August is pending, but expectations are for continued subdued imports. Renewed US-Iran tensions and a fresh naval blockade since mid-July have again left bitumen vessels stranded in the Mideast Gulf, making vessel owners hesitant to load Iranian cargo. The monsoon season in India, typically peaking in July and August, has also influenced the situation, with less rainfall than the previous year but still impacting imports and project timelines, particularly in northeastern and southwestern states.