According to the Commodity Market Analysis System of SunSirs, from April 15th to 22nd, the price of asphalt in Shandong Province dropped from 3,705 RMB/ton to 3,678 RMB/ton, a decrease of 0.73%, an increase of 2.14% month on month, and a year-on-year decrease of 5.05%. After the increase in asphalt prices, there was a slight correction. There is a clear north-south differentiation in asphalt spot prices, and Shandong and North China regions have a strong willingness to pull up prices, driving asphalt spot prices to continue to rise. However, the performance of terminal demand in the market is average, and the decline in crude oil weakens the cost support for the asphalt market. After the rise of asphalt spot prices, there is a slight decline, and the market maintains a stable, moderate, and weak operation.
On the supply side, in terms of major production enterprises, Shandong Petrochemical switched to producing residual oil on April 10th, and HSBC Petrochemical resumed asphalt production on April 15th; Hebei Xinhai has stable production, while Cangzhou XingaoRMB atmospheric and vacuum distillation unit produces mainly residual oil; Intermittent production of Beihai refining and chemical industry; The comprehensive operating rate of the asphalt industry has increased month on month, with negative impacts on the supply side.
On the cost side, in terms of crude oil: within the same cycle, the crude oil market has declined narrowly. US crude oil inventories have increased beyond expectations, demand expectations have weakened, and conflict risk premiums have been suppressed. As of April 19th, the settlement price of Brent crude oil futures main contract was reported at $87.29 per barrel.
On the demand side, the demand for asphalt varies slightly in different regions. The northern market mainly relies on scattered and rigid demand, while the southern region experiences rainy weather, which hinders actual demand. The demand side of the asphalt market has a mixed impact.
As of the close of April 22, the petroleum asphalt futures market has decreased. The main asphalt contract 2406 opened at 3,744 RMB/ton, with a highest price of 3,757 RMB/ton and a lowest price of 3,720 RMB/ton. It closed at 3,759 RMB/ton in the end, a decrease of 33% from the previous trading day's settlement, a decrease of 0.88%. The trading volume was 110,541 lots, and the position was 179,862 lots, with a daily increase of -11,368.
In the future, it is predicted that international crude oil will experience a high-level correction, and the support for asphalt costs will weaken. Some refineries plan to resume production, and supply may slightly increase. There are slight differences in actual demand between regions. SunSirs asphalt analysts predict that the domestic asphalt market will mainly operate weakly in the short term.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.