Price trend

According to the monitoring of SunSirs, the asphalt market had recovered and fluctuated. From February 27 to March 3, the price of asphalt in Shandong rose from 3,888 RMB/ton to 3,896 RMB/ton, up 0.22%, down 1.09% month-on-month and up 7.60% year on year. Recently, supported by the relatively strong crude oil, the asphalt market quotation had risen. The overall operation of the refinery was relatively stable, and the modified processing had warmed up, driving up the atmosphere of the asphalt market.

Analysis review

In terms of cost of crude oil: although it was worried that the increase of interest rates in Europe might affect economic growth, the demand of Indian refineries had reached a record high, and the economic data of China was improving, and the international oil price continued to rise. NYMEX crude oil futures 04 contract price was 78.16 US dollars/barrel, up 0.47 US dollars/barrel or 0.60%; ICE oil distribution futures 05 contract price was 84.75 US dollars/barrel, up 0.44 US dollars/barrel or 0.52%. The cost side was good for the domestic oil industry chain.

On the supply side, Guangzhou Petrochemical, Wenzhou PetroChina and Alpha resumed production of asphalt. It is expected that Kaiyi will resume production next week, and the supply may continue to increase. This week, the operating rate of major asphalt manufacturers remained at about 30%, and the supply side was temporarily negative for the market of asphalt.

On the demand side, the temperature was gradually rising, and some terminal projects had been started in succession, but the rainfall range in the south had increased, and the demand performance was tepid, mainly based on the demand for goods preparation and warehousing.

Market outlook

Temperatures around the country have gradually warmed up, but the rainfall weather in the south has increased, and the demand is expected to be tepid, and mainly based on the demand for goods preparation. The asphalt analysts of SunSirs expect that the domestic asphalt market will be dominated by the volatility and consolidation in the short term.

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