SunSirs: Asphalt Market Price was Stable Last Week (9.2-9.9)

1. Price Trend

According to the price monitoring of SunSirs, the market price of asphalt was stable this week, and the price of asphalt was reported at 3,546 RMB/ton, which was equal to that of last week.

2. Analysis of Influencing Factors

Product: The international oil price in the latter half of last week has been rising every day, but the market demand for asphalt is stable as a whole. This week, the market price of asphalt has not followed the rise of crude oil price.

Industry Chain: The Sino-US trade war continues, and crude oil is blocked from going up under the overall situation. However, Russia has declared a strict cut in production, coupled with the deterioration of the situation in the United States and Iran, the market sentiment is growing. WTI crude oil futures have risen for four consecutive days, reaching $57 per barrel. Last week, WTI and Brent crude oil futures rose 2.18% and 0.86% respectively.

Asphalt market: Last week, Northeast China had abundant foreign reserves, insufficient market demand and limited shipments from refineries. Liaohe Petrochemical Asphalt Price was sharply reduced 250 RMB/ton. The downstream projects in Shandong and North China are still under construction with little change in total demand. In East China, inventory continues to degrade, but the number of new contracts is relatively small. At present, Shandong and Northeast markets have more low-price goods, and the asphalt market lacks effective project support. The overall performance of asphalt price is stable.

3. Market Forecast

SunSirs’ asphalt analyst believes that international crude oil is expected to rise, but overall, the support of asphalt prices is relatively small, coupled with severe price repression in the asphalt futures market, asphalt prices are expected to remain stable next week.

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