SunSirs: Energy, the Market Price of Asphalt Fell Last Week (March 16-20)

Price Trend

According to the price monitoring of SunSirs, the market price of asphalt fell last week, and the price of asphalt was reported as 3,300 RMB/ ton, 2.37% lower than that of the previous week.

Analysis of Influencing Factors

Product: the international oil price continued to fall, and the demand of asphalt market was low. Last week, the price of asphalt market fell.

Industrial chain: since the OPEC+ conference, Saudi Arabia has been releasing the news of a substantial increase in production, and Russia has actively responded to the war to increase production. Although U.S. President Trump said he would intervene in the oil price dispute between Saudi Arabia and Russia at the right time, and the international oil price rebounded in retaliation, as of March 20, 15, WTI crude oil price was $27.5/ barrel, and WTI crude oil futures still fell by 16%.

Asphalt Market: last week, crude oil price continued to decline, and spot asphalt continued to decline. Last Tuesday, Sinopec's Asphalt price in East China and South China was reduced by 200 RMB/ ton, and the asphalt price in Sichuan, CNOOC, was reduced by 700 RMB/ ton twice. The turnover price of northeast, Shandong and Hebei asphalt kept dropping, which made the market price difficult to stop. Although it just needs to recover, the demand side is limited, and the trend of crude oil price is pessimistic. Major institutions continue to reduce the price expectation in the later period, the market mentality is pessimistic, the cost end of asphalt production collapses, and there is room for asphalt price to be lowered.

Market Forecast

The asphalt analyst at SunSirs believes that, although crude oil rebounds sharply, global crude oil demand is still shrinking, and there is no sign of turning around in the current oil price war between Saudi Arabia and Russia, and the production cost of asphalt continues to pull down. It is expected that the price of asphalt market will continue to bear pressure in the near future.

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