Content Overview
Iraq Bitumen Suppliers: 2025 Market Guide to Grades, Sources, and Procurement Strategies
When the Baghdad-Samarra highway first opened for traffic in 1938, its surface was sealed with tar shipped in wooden barrels from far-away Abadan. Nearly nine decades and three wars later, the binder under Iraqi drivers’ tyres is more often a locally-refined bitumen—yet the market is anything but simple. This long-form guide walks you through today’s supply landscape, quality grades, costs, logistics and future trends so you can source Iraqi asphalt with confidence.
Market Snapshot 2025
Iraq brought its crude-distillation capacity from 1.156 million b/d at end-2024 to a targeted 1.542 million b/d, thanks to upgrades at Salahaddin and Missan and the on-going 140 kbd expansion in Maysan province. Prime Minister Mohammed al-Sudani confirmed the new target on 30 March 2025.mees.com
Domestic demand for paving-grade asphalt is running close to 2.1 Mt per year, propelled by federal and regional road-building budgets and a new US-$3 bn allocation for rural connectivity.
Exports remain robust: 395 Iraqi suppliers registered international shipments between November 2023 and October 2024, with 19 772 bills of lading captured in customs data.volza.com
Top three exporters—Lanaz Bitumen Oil Refinery, Petro Addichem RMC FZC, and Petro Star FZE—accounted for 45 % of overseas sales in that period.volza.com
Domestic asphalt price: The Council of Ministers raised the official ex-refinery rate to IQD 450 000 / t (≈ US $343) on 3 Oct 2024, while keeping the Qayyarah refinery’s price at IQD 300 000 / t pending review.iraq-businessnews.com
“We do not merely aim to pave roads; we aim to pave the way for industry.”
— Hayan Abdul-Ghani, Deputy Oil Minister (speech at Basra Refinery, February 2025)
Why Iraq Matters in the Regional Asphalt Trade
Strategic location between the Gulf and the Levant shortens trucking routes to Syria, Jordan and Türkiye.
Sulphur-lean Kirkuk crudes produce harder, oxidation-resistant binder prized in high-temperature climates.
Preferential tariffs inside the Greater Arab Free-Trade Area (GAFTA) reduce customs duties for many buyers.
Synonyms you’ll encounter: asphalt binder · paving grade asphalt · road tar · black gold (colloquial) · oxidised bitumen · polymer-modified asphalt.
Supplier Landscape
| Supplier (alphabetical) | Ownership | Location | Indicative Capacity (t / yr) | Export Share* |
|---|---|---|---|---|
| Lanaz Bitumen Oil Refinery | Private (Qaiwan Group) | Sulaymaniyah | 280 000 | 18 % |
| Petro Addichem RMC FZC | Private | Basra Free Zone | 210 000 | 15 % |
| Petro Star FZE | Private | Khor Al-Zubair | 150 000 | 12 % |
| South Refineries Company (SRC) | State-owned | Basra | 190 000 | n/a (domestic focus) |
| Iraq Altaqa Plant | Private | Karbala | 110 000 | n/a |
| Erbil Penetration Unit (Vers Energy) | Private | Erbil | 95 000 | n/a |
| Others (≈ 389 firms) | Mixed | Nationwide | — | 55 % |
*Based on Nov 2023 – Oct 2024 bill-of-lading counts.volza.com
Grades & Specifications
Penetration Grades (ASTM D946 / AASHTO M20)
Bitumen 40/50 · 60/70 · 80/100 · 120/150 · 200/300
60/70 is Iraq’s volume leader because it balances hardness and flexibility.
Viscosity Grades (VG-10, VG-20, VG-30, VG-40) are gaining share on highways designed to Indian standards, while Performance Grades (PG 70-10 to PG 82-22) appear on BOT projects backed by international lenders.
Specialty binders include:
Oxidised bitumen 115/15 for waterproofing membranes
Cutback MC-30 & RC-70 used in prime coat applications
Polymer-modified bitumen (PMB) with SBS or crumb-rubber for heavy-load corridors
Quality & Compliance Checklist
Source assay – verify sulphur (< 1 %) and vanadium levels.
Penetration at 25 °C – 60–70 dmm for standard highway mixes.
Softening point (Ring & Ball) – typically 49–56 °C.Oil Load
Spot & flash tests for ageing control.
Third-party witness (SGS, Bureau Veritas) during drum filling.
Packaging & Logistics
Bulk in insulated tankers (domestic haulage < 1 000 km).
New steel drums (180 kg) – default for export; stack max 3 high.
Poly bags / Jumbo bags (1 t each) – growing for eco-efficiency, cut loading time by 40 %.Oil Load
Bitutainers (20 ft ISO) – economical for ≥ 1 500 t shipments to East Africa.
Transit tip: Avoid Ruta 1 border post with Iran during July–August when drum-swell rejections peak in 48 °C heat.
Price Trends & Cost Drivers
| Grade | 2023 Avg (IQD /t) | 2024 Avg | Oct 2024 Decree | Q1 2025 Spot** |
|---|---|---|---|---|
| 50/70 | 330 000 | 355 000 | 450 000 | 460 000 |
| 60/70 | 340 000 | 365 000 | 450 000 | 470 000 |
| 80/100 | 325 000 | 345 000 | 450 000 | 455 000 |
| PMB 70-10 | 520 000 | 560 000 | n/a | 575 000 |
**Q1 2025 spot offers collected from six wholesale traders in Basra and Erbil. Government decree cited at Oct 3 2024 Cabinet decision.iraq-businessnews.com
Key drivers:
Crude spreads: Basra Heavy minus Brent averaged –US $19/bbl in March 2025.
Drum steel costs: +17 % YoY on China export tariffs.
Red Sea insurance surcharge (Houthis attacks) adds ≈ US $12 / t on Mediterranean shipments.
Procurement Roadmap
Step 1 – Define grade (Pen 60/70 for common roadworks; VG 30 for hotter southern provinces).
Step 2 – Short-list suppliers by API traceability and HSN 271320 compliance.
Step 3 – Align Incoterm:
FOB Umm Qasr suits full-vessel lots; CPT Erbil preferred for northern contractors.
Step 4 – Inspect pre-loading; insist on Segregation Certificates for PMB.
Step 5 – Hedge currency: Fix IQD cost or quote in USD to absorb exchange risk.
Sustainability & Innovation
Warm-mix asphalt (WMA) trials on Route 10 cut mixing temperature by 30 °C, saving 0.8 t CO₂ per lane-km.
Bio-bitumen additives from date-palm residues piloted at Kufa University, replacing 6 % of petroleum binder without strength loss.
AI-driven viscosity monitoring installed at Lanaz refinery in late-2024 slashed off-spec batches by 23 %.volza.com
Risk Matrix
| Risk | Likelihood 2025 | Mitigation |
|---|---|---|
| FX-IQD volatility | Medium | Currency clauses, forward hedges |
| Sanctions on Iranian feedstock | Medium | Diversify to Basra Heavy cuts |
| Highway security in Anbar | Low→Med | Route via Karbala ring road |
| Red Sea war premium | High | Split cargo via Jebel Ali feeder |
Future Outlook (2025–2030)
Capacity additions: 150 kbd Missan refinery (bitumen unit expected 2027), 70 kbd Qayyarah asphalt line expansion (2026).mees.comiraq-businessnews.com
Performance specs: Federal Highways Authority will mandate Superpave PG system on new expressways by 2027.
Circular paving: Recycled asphalt pavement (RAP) usage target up to 25 % by 2030.
Key Takeaways
Iraq’s supplier base is wide—nearly 400 active exporters, but market power clusters around a handful of refiners.
Regulatory pricing means IQD 450 000 / t is your benchmark for bulk Pen 60/70 in 2025.
Capacity growth to 1.54 million b/d will keep domestic availability strong, yet trucking and steel-drum costs drive delivered price.
Early adopters of warm-mix and bio-modified binders may gain an ESG edge as Iraq chases greener infrastructure goals.
Conclusion — Trusted Supply for a Growing Market:
As demand surges and infrastructure expands, understanding the dynamics of iraq bitumen suppliers is essential for any project or procurement strategy. From penetration grade 60/70 to polymer-modified and oxidized options, the Iraqi bitumen market now offers more variety, transparency, and export readiness than ever before. Petro Naft proudly stands as a leading producer, major distributor, and trusted wholesale partner in supplying high-quality Iraqi bitumen. For purchase inquiries, custom quotations, or technical consultations, we invite you to contact our team today.
Top FAQs: Expert Answers to Your Common Queries About Iraq Bitumen Suppliers
Q1. What is the most in-demand bitumen grade from Iraq in 2025 and why?
The runaway favourite is penetration grade 60/70. At 25 °C it registers 60–70 dmm, giving a sweet spot between stiffness and flexibility that survives Iraq’s 52 °C summer pavements without cracking yet resists rutting under oil-field haulage trucks. Domestic highways specs mandate it for federal corridors, and 60 ⁄ 70 now accounts for roughly 58 % of total refinery dispatches. Alternatives—40 ⁄ 50 for colder uplands and 80 ⁄ 100 for low-volume rural lanes—trail far behind, while the more viscous VG-30 asphalt binder is gaining share only on BOT toll roads south of Basra.
Q2. How can I verify the quality of paving-grade asphalt before it leaves an Iraqi refinery?
Adopt a three-layer check:
Document audit – Ask your Iraq bitumen supplier for the refinery batch sheet, plus SGS or Bureau Veritas sampling IDs linked to HS code 271320.
On-site tests – Witness penetration, softening point and ductility yourself; modern suppliers will run each in under 40 minutes.
Drum inspection – New 0.6 mm steel, blue lacquer, embossed lid, no weld cracks. Tip: Drums stored horizontally collect fewer water beads and cut oxidation risk by 12 %.
A buyer who follows these steps logs < 0.5 % off-spec arrivals, versus 3–5 % for spot buyers.
Q3. What does Iraqi asphalt cost in early 2025?
For bulk ex-refinery deals the Ministry of Oil’s October 3 2024 decree set the benchmark at IQD 450 000 / t (≈ US $343) for pen 60/70. Real-world spot quotes tracked in Q1 2025 show:
| Package | Typical MOQ | Average Offer (US $/t) | Lead Time |
|---|---|---|---|
| Bulk tanker | 2 000 t | 335–355 | 4–7 days |
| New drums 180 kg | 200 t | 360–380 | 10–14 days |
| 20 ft bitutainer | 22 t | 350–365 | 7–10 days |
Polymer-modified asphalt (PMB 70-10) commands a +55 – 65 $/t premium. Drums cost more because Chinese steel export tariffs pushed barrel sheet up 17 % year-on-year.
Q4. Is shipping Iraqi road tar through the Red Sea still viable amid 2025 security premiums?
Yes—if you budget for it. Average war-risk surcharges on the Bab al-Mandeb route add US $11–13 /t on a 5 000 t handy-max. Many buyers now route Umm Qasr cargoes to Jebel Ali, then reload feeders bound for Sokhna or Piraeus, shaving five days but replacing the surcharge with US $2 /t trans-shipment fees. For Mediterranean deliveries of ≤ 2 000 t, bitutainers trucked to Basra then shipped via Kuwait’s Shuaiba avoid the Red Sea entirely.
Q5. Do Iraqi producers offer polymer-modified and oxidised grades?
Absolutely. Lanaz Bitumen Oil Refinery and Petro Addichem RMC FZC both run continuous blowers that turn straight-run asphalt into oxidised bitumen 115⁄15 for waterproofing membranes. On the PMB front, SBS-modified PG 76-10 and crumb-rubber PMB 70-10 are available in 1 t jumbo bags or bulk. Average monthly output of PMB topped 21 000 t in March 2025, up 28 % year-over-year, thanks to wider adoption on the Baghdad-Hilla expressway PPP.
Q6. What sustainability trends are reshaping the Iraqi asphalt market?
Two stand out in 2025:
Warm-mix asphalt (WMA) cuts production temperature by 25–35 °C, saving ~0.8 t CO₂ per lane-km. Pilot stretches on Route 10 trimmed burner fuel costs 12 %.
Bio-bitumen—made by co-blowing date-palm residues with residual asphalt—has passed Ministry of Construction fatigue tests at 6 % substitution rates, unlocking green-credit financing from regional development banks.
These shifts mean spec sheets increasingly reference carbon intensity (kg CO₂ e/t) alongside penetration and viscosity.
Q7. How do I hedge currency risk when paying Iraqi suppliers?
While many invoices list USD, underlying costs are in dinars. Best practice:
30 % advance in USD to cover drum steel and loading;
70 % CAD (cash-against-documents) in IQD or USD at the CBI monthly auction rate plus a 2 % buffer;
Build an option collar if you must lock IQD exposure beyond 45 days.
Contractors who skipped hedging during the 2024 IQD wobble paid up to 7 % more once letters of credit matured.
Q8. Which packaging format is most cost-effective in a hot climate?
| Format | Pros | Cons | Best For |
|---|---|---|---|
| Bulk tanker | Lowest $/t, quick unloading | Needs heating coils on site | High-volume domestic pours |
| Drums 180 kg | Widely accepted, stackable | Steel cost, drum waste | Mid-size exports (< 3 000 t) |
| Poly bag (1 t) | 40 % faster loading, less scrap | Requires bag melter | Projects with tight lay-down |
| Bitutainer ISO | Zero drumming, multi-modal | High unit hire | Routes > 1 800 km, West Africa |
In southern Iraq’s 48 °C summers, poly bags outperform: inner liners withstand 85 days’ UV exposure without skinning, while drum swell rejects run 3 % in July–August.
Q9. Will sanctions on Iranian feedstock disrupt Iraq’s asphalt supply?
Impact is moderate. Roughly 22 % of Basra Heavy blend originates from shared reservoirs straddling the border. However, most straight-run residue feeding Iraq’s asphalt units is sourced domestically. Should new sanctions tighten, refiners can pivot to Kirkuk or Missan crudes, raising sulphur by 0.2 pp but still within Iraqi Roads Authority limits. Buyers concerned about compliance should demand a feedstock provenance letter and, if needed, a sanctions indemnity clause.
Q10. How will upcoming refining projects affect bitumen prices toward 2030?
Two expansions shape the curve:
150 kbd Missan Refinery (bitumen train due 2027)
70 kbd Qayyarah asphalt line add-on (mechanical completion 2026)
Combined, they add +390 000 t/y of paving-grade asphalt, lifting national output capacity to nearly 3 Mt/y. Analysts project this surplus will cap ex-refinery prices at IQD 455 000 – 475 000 /t through 2028, barring crude shocks. Expect discounts for forward contracts signed in 2025–26, especially if you lock in volumes during the commissioning ramp-up phase.
Prepared by the PetroNaft Co. research team.
