Price trend
According to the monitoring by SunSirs, the asphalt market had significantly fallen back. From March 10th to 17th, the price of asphalt in Shandong fell from 3,939 RMB/ton to 3,818 RMB/ton, a decrease of 3.08%, a month-on-month decrease of 1.40%, and a year-on-year decrease of 0.24%. The sharp decline in international crude oil and the weakening of cost support had led to successive declines in the asphalt market price.
Analysis review
In terms of cost and crude oil, international crude oil had plummeted continuously, with Brent falling by more than 10%. The impact of pessimism had spread, and the market was mostly on the sidelines. The cost side was negative for the domestic oil industry chain.
On the supply side, Xinjiang Meihuite switched to residual oil production, Hebei Lunte large unit and Kaiyi intermittent restarted production, but Xinhai large unit changed production; Shandong Keyu changed production and Yangzi Petrochemical stopped production intermittently, resulting in a relatively reduced supply and a slight positive temporary storage of supply.
On the demand side, overall rigid demand was still tepid and tepid, and the rain weather in some parts of the south posed some obstacles to demand.
Market outlook
In the short term, international crude oil has a weak adjustment and demand recovery will be slow. Asphalt analysts from SunSirs predict that the domestic asphalt market will be dominated by weak consolidation in the short term.
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