According to the Commodity Market Analysis System of SunSirs, the asphalt market is in a weak position. From July 3rd to 7th, the price of asphalt in Shandong region dropped from 3,762 RMB/ton to 3,752 RMB/ton, a decrease of 0.27%, a month on month decrease of 0.66%, and a year-on-year decrease of 16.06%.

International crude oil tends to operate strongly, with some support for the cost of asphalt. However, the overall supply remains at a high level. Hebei Kaiyi Petrochemical plans to produce finished products and Jincheng Petrochemical plans to resume production, leading to regional demand differentiation. The demand in the northern region is supported, and the rainy weather along the Yangtze River in East China results in average actual demand.

On the supply side, in terms of major production enterprises, Hebei Kaiyi resumed production, Yangzi Petrochemical and Shanghai Petrochemical intermittent production, Beihai Refining and Chemical intermittent production, together with the stable production of Maoshan Petrochemical, led to the increase of construction in the zone. The comprehensive operating rate of the asphalt industry has increased month on month, with negative impacts on the supply side.

On the cost side, international crude oil prices have fluctuated upwards. WTI crude oil in the United States was closed on Tuesday, and prices have increased due to cuts in supply from Saudi Arabia and Russia. Additionally, data from the American Chamber of Petroleum (API) shows a significant decrease in US inventory last week. On July 6th, the benchmark price of Brent crude oil in the business community was 76.25 US dollars per barrel, an increase of 2.34% compared to the beginning of this month (74.51 US dollars per barrel). The domestic Petroleum industry chain is favorable.

On the demand side, the demand for asphalt in the market is relatively flat, with varying demand in different regions. The demand in the northern region is still acceptable, while the rainfall in many southern regions and the rainy season in eastern China are important factors limiting market demand. The overall demand side of the asphalt market is biased towards bearish effects.

As of the close of July 6th, the petroleum asphalt futures market has declined. The main asphalt contract 2310 was opened at 4,017 RMB/ton, with a maximum price of 4035 RMB/ton and a minimum price of 3,963 RMB/ton. It closed at 3,967 RMB/ton, down 40% from the previous trading day, with a decrease of 1.00%. The trading volume was 139,959, the position was 174,547, and the daily increase was 13,807.

In the future, supply continues to rebound and the market atmosphere is weak. Downstream demand is weak and actual demand is weak. SunSirs asphalt analysts predict that the domestic asphalt market will be mainly weak in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.