SunSirs: International Crude Oil Price Rises and Asphalt Price Rises in July

The international oil price fluctuates and rises, and the demand expectation of asphalt in peak season is favorable to the market price of asphalt. China domestic asphalt prices rose in July. According to the price monitoring data of SunSirs, the asphalt price was reported to be 2,512 RMB/ ton on July 30, 6.91% higher than that at the beginning of the month.

In terms of international crude oil, OPEC+ relaxed the production reduction as scheduled, but it had little impact on the international crude oil market price. In addition, the US crude oil demand improved, crude oil inventory fell sharply, the US stimulus plan and the EU recovery fund made significant progress, the new crown vaccine research made a breakthrough, market demand worries eased, and a series of good news was released. The international crude oil price rose in July, with WTI and Brent crude oil rising by 5.09% and 6.83% respectively.

At the end of Meiyu season in southern China, the demand in South China is good and the shipment is smooth; East China refineries can basically maintain the balance of production and sales, but the terminal demand is still weak; Southwest and central China are affected by rainfall and flood, the demand is not good; the demand of asphalt terminal market in northern China is good, the price of asphalt market is supported, and the demand for asphalt in Northwest China drops for a short time. On the whole, the demand of asphalt market is in the rising stage. In addition, the demand of asphalt in peak season is expected to be strong in the middle and lower reaches. The price of asphalt keeps rising.

China domestic asphalt production in June was 2.7859 million tons, and the production plan in July was 2.98 million tons, both the highest levels in the same period of history. At present, the domestic asphalt operating rate at the end of the month is 63%, which is slightly lower than that at the beginning of the month.

SunSirs analysts believe that the southern region asphalt demand is in the recovery stage. The demand 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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