The international crude oil price fluctuated above $40/ barrel, and the operating rate of asphalt plant dropped slightly, which supported the asphalt market price. Recently, the domestic asphalt price has been rising steadily. According to the price monitoring data of SunSirs, the asphalt price was reported at 2,512 RMB/ ton on July 21, 1.52% higher than that on July 13.

In terms of international crude oil, U.S. crude oil demand improved and crude oil inventory decreased significantly. While the crude oil market released good news, OPEC+ relaxed production reduction as scheduled, and the overseas epidemic continued to drag down the global economy and crude oil demand prospects. International oil prices rose first and then fell, but crude oil prices fluctuated above $40/ barrel. In terms of production cost, the asphalt market price has a certain support.

At present, rainy weather in southern China limits the demand of terminal asphalt. The northeast and northwest are in the peak season of construction, and the rigid demand is relatively good. The end of Meiyu season in southern China, the peak demand season of asphalt terminal market is expected to remain, and the middle and lower reaches have a strong desire to stock up. Asphalt inventory is transferred from refinery to social inventory.

The domestic production in June was 2,785,900 tons, and the domestic asphalt production plan for July was 2.98 million tons, both of which were the highest level in the same period in history. At present, the asphalt inventory in refineries has rebounded slightly, and some refineries have reduced their asphalt production load. The domestic asphalt operating rate this week was 68%, a slight drop of 3% from the previous week.

SunSirs analysts believe that the southern region affected by rainfall, flooding, terminal asphalt demand to be restored. The demand for terminal asphalt in northern China is relatively strong, and the asphalt load of refineries is reduced. It is expected that China asphalt price will continue to rise slightly.

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