BITUMEN

Bitumen, also known as asphalt, is a substance produced through the distillation of crude oil that is known for its waterproofing and adhesive properties. Bitumen production through distillation removes lighter crude oil components, such as gasoline and diesel, leaving the “heavier” bitumen behind. The producer often refines it several times to improve its grade.

1.Bitumen, a substance known for its waterproofing and adhesive properties, can occur naturally or be formed through the distillation of crude oil.

2.It is composed of complex hydrocarbons and contains elements such as calcium, iron, sulfur, and hydrogen.

3.Bitumen prices are determined by the state of the global economy and supply and demand for crude oil.

4.The world’s first bitumen futures contracts debuted on the Shanghai Futures Exchange in October 2013.

Bitumen is a residual material during the process of refining crude oil into liquefied petroleum gas (LPG) and gasoline. As such, bitumen prices are heavily dependent on the same set of factors that affect crude prices. These include supply and demand for crude and geopolitical stability in crude-producing regions of the world.

Understanding Bitumen

Bitumen can also occur in nature: Deposits of naturally occurring bitumen form at the bottom of ancient lakes, where prehistoric organisms have since decayed and have been subjected to heat and pressure.

Bitumen is composed of complex hydrocarbons and contains elements such as calcium, iron, sulfur, and oxygen. The quality of material and ease of production depends on the source and type of crude oil it is derived from.

BITUMEN FUTURES

The world’s first Bitumen futures contracts debuted on the Shanghai Futures Exchange in October 2013, aimed at operators of refineries for crude oil, dealers in bitumen, and end-users of the product.
Bitumen is generally for industry use. The substance was first used for its natural adhesive and waterproofing characteristics, helping to bind building materials together, as well as to line the bottoms of ships. It has also been used in the past as a medicine.

The futures contract is monthly and entails physical delivery of 10 tons of bitumen per lot upon expiration. The final product for delivery has to be certified by the Shanghai Futures Exchange and should adhere to quality specifications described in the Bitumen Futures Delivery Rules.

HISTORY

The use of natural bitumen for waterproofing, and as an adhesive date at least to the fifth millennium BC, with a crop storage basket discovered in Mehrgarh, of the Indus Valley Civilization, lined with it. By the 3rd millennium, BC refined rock asphalt was in use in the region and was used to waterproof the Great Bath in Mohenjo-Daro.

In the ancient Middle East, the Sumerians used natural bitumen deposits for mortar between bricks and stones, to cement parts of carvings, such as eyes, into place, for ship caulking, and for waterproofing. The Greek historian Herodotus said hot bitumen was used as mortar in the walls of Babylon.

MORDEN USE

BITUMEN is applied in the construction and maintenance of many structures, systems, and components, such as the following:

Highways
Airport runways
Footways and pedestrian ways
Car parks
Racetracks
Tennis courts
Roofing
Damp proofing
Dams
Reservoir and pool linings
Soundproofing
Pipe coatings
Cable coatings
Paints
Building water proofing
Tile underlying waterproofing
Newspaper ink production
and many other applications