In late June, the international oil price rose to around $40 / barrel. In addition, the demand for downstream asphalt storage was released, and the domestic asphalt price rose slightly. According to the price monitoring data of SunSirs, the asphalt price on June 30 was 2,362 RMB/ ton, which was 2.72% higher than that on June 21.

Recently, the international crude oil price has been steadily rising, and the international oil price once exceeded $40/ barrel. In late June, WTI and Brent crude oil futures prices rose 1.66% and 0.82% respectively. The price difference of asphalt crude oil was back to the level of the first quarter of 2020. With the rise of crude oil price, most of the downstream enterprises hold a bullish attitude towards the asphalt price.

Affected by the Meiyu season in southern China, the demand for asphalt downstream is weak, and the inventory level of some refineries reaches a high level. However, with the official end date of Meiyu season approaching on July 9, traders and downstream demand for asphalt storage began to rise, driving up the price of asphalt in some areas. North China, Shandong and other regions are less affected by rainfall weather, asphalt demand is stable, middle and lower reaches users purchase on demand, and most refineries maintain production and sales balance.

Data show that the recent domestic asphalt plant operating rate is about 64%, and the operating rate is basically stable. In May, the total domestic asphalt production was close to 2.8 million tons; in June, the domestic asphalt production was about 2.9 million tons. Near peak season, the demand for downstream stockpiles increased, which led to a small increase in refinery asphalt production.

Business agency analysts believe that the short-term international oil price will remain around $40/ barrel, the traditional peak season of asphalt is approaching, and the demand for asphalt will increase. It is expected that the domestic asphalt price will rise steadily in the third quarter of 2020.

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