The seasonal off-season of asphalt overlaps the high China domestic asphalt operating rate, and the domestic asphalt market price is under pressure. According to the price monitoring data of SunSirs, on June 19, the asphalt price was reported as 2,300 RMB/ ton, down 1.08% compared with that at the beginning of the week.

The data shows that the operation rate of domestic asphalt plant has increased from 61% to 65% previously, and the asphalt supply in South China, East China, Shandong and northwest regions has increased. In May, the total output of domestic asphalt was close to 2.8 million tons; the monthly growth rate was more than 300,000 tons, and the quantity of imported asphalt in May was about 440,000 tons, which was basically the same on a month on month basis. In June, Sinopec and its refineries are expected to maintain a high level of construction, and the market supply pressure will not be reduced.

The high supply of asphalt market meets the low seasonal demand of asphalt. In the near future, the demand in Shandong and North China is stable and the users in the middle and lower reaches purchase on demand; the rainy weather in East China limits the construction and terminal demand, and the shipment of refineries and traders slows down. The weather in Northeast and Northwest China is good, there are many terminal road construction projects, and asphalt needs to be increased.

Last week, the overall international crude oil price rebounded after falling, but the recent international crude oil market is not good enough to follow up, and the international oil price cannot exceed $40/ barrel. From the news point of view, the crude oil market does not have any effective direction guidance for the time being, and the market is worried about the second outbreak of the epidemic, so it is not optimistic about the crude oil market. The asphalt market will lose the support of cost and price.

SunSirs analysts believe that the short-term international oil price is under great pressure at the $40/ barrel, and the asphalt supply shows no signs of reducing, and it is expected that the domestic asphalt price will continue to bear downward pressure.

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