Singapore road builders hit by bitumen shortage as costs jump and projects slow

SINGAPORE: Singapore’s road construction sector is running into a problem most people never think about until traffic cones appear for weeks longer than expected: bitumen.

Contractors told Channel NewsAsia (CNA) that shortages of the road-building material have pushed prices up by as much as 60% in recent months and delayed some projects for months, as the pressure is tied to global oil supply disruptions linked to conflict in the Middle East, which has affected access to the heavier crude grades needed to make bitumen.

For commuters, the effect may not show up as empty shelves or sudden shortages, but in roadworks taking longer, tighter project planning, and companies deciding which jobs move first.

Contractors are now choosing which road construction jobs can wait

Local road contractor United E&P said its bitumen supply dropped by about half in March, describing the disruption as the worst since the COVID-19 period. The company works mainly on public roads and airport runways, making supply stability a practical concern rather than a background issue.

General manager Koh Chan Swee said the company has had to work with agencies and customers to decide which projects should take priority.

United E&P also looked at buying from suppliers in China to ease supply pressure, but said prices remain difficult to justify. The firm hopes government support for bitumen purchases will continue beyond this month, while market conditions remain tight.

The situation reveals a growing reality in construction: materials may look interchangeable on the surface, but many industries depend on highly specific inputs with limited substitutes.

Bitumen can’t be replaced overnight

Industry analysts say the asphalt supply is not likely to disappear any time soon. June Goh, senior oil market analyst at Sparta Commodities, explained that only certain heavy crude grades can produce bitumen that meets industry standards. Supply routes for those grades have been heavily disrupted.

Adding to the complication, refineries are weighing whether to process crude into bitumen or fuel oil, as fuel demand remains strong, but even if oil supply improves, bitumen production doesn’t automatically recover at the same pace.

For Singapore, where infrastructure work runs continuously across roads, airports and public projects, material shortages can ripple into schedules and budgets faster than most people expect.

Plastic-based road material alternative gets attention

The shortage has also created room for newer ideas. Singapore startup Magorium said demand for its plastic waste-based road material, NEWBitumen, has more than tripled locally and around the region. The company added that production is already operating at full capacity while it expands output.

Co-founder Oh Shu Xian explained that because plastics originate from crude oil, waste plastic can potentially be recovered and turned into another usable oil-based material instead of being discarded.

For now, the product still needs to be mixed with traditional bitumen to meet Singapore’s road standards, and the company is continuing research to develop a fully independent replacement.

Such shortages frequently change behaviour faster than policy does, as materials once viewed as experimental suddenly get a second look when supply becomes uncertain.

Having more than one way to keep Singapore’s roads moving

Road construction rarely enters public conversation unless work causes delays, but situations like this show how far upstream infrastructure problems begin.

Though the country cannot control global oil flows, companies can diversify suppliers, test alternatives and build more breathing room into contracts. Short-term support may help ease pressure, but long-term resilience usually comes from having more than one way to keep Singapore’s roads to keep moving.