Price trend

According to the monitoring by SunSirs, the asphalt market continued to decline. From March 17th to 24th, the price of asphalt in Shandong fell from 3,818 RMB/ton to 3,675 RMB/ton, a decrease of 3.74%, a month-on-month decrease of 4.78%, and a year-on-year decrease of 0.24%.The sharp decline in crude oil and the slow recovery of terminal demand had led to a significant decline in the domestic asphalt market price.

Analysis review

In terms of cost of crude oil, international crude oil experienced weak shocks and a slight rebound, but the crude oil guidance was relatively weak. The early slump had not yet been fully transmitted, and the market mentality was relatively pessimistic. The cost side was negative for the domestic oil industry chain.

On the supply side, Liaohe Petrochemical Company converted to asphalt production; Cangzhou Xingaoyuan, Cangzhou Xinquan, and Cangzhou Jinnuo resumed asphalt production; Zhuhai Huafeng resumed asphalt production; Xinjiang Meihuite had no production plan temporarily. The comprehensive operating rate of the asphalt industry had increased on a month-on-month basis, the supply side had negative impacts.

On the demand side, there may be precipitation weather in some areas of the south that might hinder terminal construction, while the weather in the north was moderate. The demand for roads was still tepid and tepid, and sporadic and low-priced goods were purchased mainly in needed.

Market outlook

International crude oil mainly maintains a volatile trend, while asphalt cost support is limited. From the supply side, the supply of asphalt is gradually increasing, while from the demand side, the demand for roads is still tepid. Asphalt analysts from SunSirs predict that the domestic asphalt market will be dominated by weak consolidation in the short term.

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