According to the price monitoring of SunSirs, the market price of asphalt fell last week, and the price of asphalt was reported as 2,300 RMB/ ton, 10.68% lower than that of the previous week.

Analysis of Influencing Factors

Product: on April 9, when the international oil price fell and the demand of asphalt market recovered slowly, the price of asphalt market fell sharply last week.

Industry chain: on April 9, the OPEC+ special meeting came to an end. Its production reduction amount was lower than the market expectation. The market generally did not accept the result, and was boosted by the news of production reduction earlier. The market has digested the benefit in advance. From the perspective of demand, at present, the global epidemic of COVID-19 is still in the stage of rapid spread. Market experts generally believe that it may last for a long time in the later period. Some institutions predict that the decline of crude oil demand in April will exceed 20 million barrels/ day, or even 30 million barrels. As of 15:00 on April 10, WTI crude oil price was $23.5/ barrel, and WTI crude oil futures fell 10.11% last week.

In terms of asphalt market: last week, Sinopec and PetroChina's main refineries suppressed the price of asphalt, and the favorable crude oil market at the beginning of the week boosted the overall turnover of asphalt market. However, in Northeast China, Liaohe Petrochemical's Asphalt price was reduced by 200 RMB ton, and in Northwest China, Karamay's price was reduced by 300 RMB/ ton. The regional market price is still dominated by supply. In the case of sluggish demand recovery, it is more difficult for asphalt prices to push up. On April 9, the international oil price fell sharply, and the sentiment of asphalt market fell into wait-and-see again.

Market Forecast

The asphalt analyst of SunSirs believes that the output reduction of OPEC+ meeting is not as strong as expected, and the demand for crude oil is expected to fall sharply, the crude oil market has no power to act, and the asphalt market has no demand support, and the price of asphalt market is expected to be stable in the near future.

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