Price trend
According to the Commodity Market Analysis System of SunSirs, the asphalt market declined in a narrow range. From May 8th to 12th, the price of asphalt in Shandong fell from 3,780 RMB/ton to 3,740 RMB/ton, a decrease of 1.06%, a month on month decrease of 2.20%, and a year-on-year decrease of 15.32%. Affected by the sharp drop in international crude oil during the holiday, Sinopec's prices had been adjusted, and the main business in the southern region had been lowered by 100-150 RMB/ton. The atmosphere of spot trading was average, and actual transactions were mostly at low levels. The market of asphalt was weak and sorting out.
Analysis review
In terms of cost, crude oil: international crude oil was weak and volatile. The debt ceiling impasse in the United States had intensified fears of economic recession, and the increase in the number of Americans applying for unemployment benefits had put pressure on the oil market. On May 12th, the benchmark price of WTI crude oil for SunSirs was 72.56 US dollars per barrel, a decrease of -5.50% compared to the beginning of this month (76.78 US dollars per barrel). The cost side was still bearish for the domestic oil industry chain.
On the supply side, Cangzhou Gangsheng, Dongming Petrochemical, Guangxi Dongyou, Alpha, and Yunnan Petrochemical by-products of asphalt had driven an increase in capacity utilization. The comprehensive operating rate of the asphalt industry increased month on month, with negative impacts on the supply side.
On the demand side, the demand for asphalt in the market was relatively flat, with varying demands from different regions. Some of them mainly relied on low-priced resource transactions, while traders mainly purchased according to demand and executed their own contracts.
Market outlook
The demand for asphalt in the market was relatively flat, with varying regional demands. Some were mainly sold through low-priced resources, while traders mainly purchased according to demand. SunSirs asphalt analysts predict that the domestic asphalt market is mainly weak and volatile in the short term.
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