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SunSirs: International Crude Oil Price Rebounded, China Asphalt Price Rose slightly

September 24 2020 10:52:09     SunSirs (Selena)

International crude oil prices rebounded after the overall bottom stabilized, but the upward range was limited. However, there is insufficient support for asphalt price in peak season. The price of China domestic asphalt is rising steadily. According to the price monitoring data of SunSirs, the asphalt price was reported to be 2,405 RMB/ ton on September 18, which was 0.42% higher than that at the beginning of the month.

Affected by the hurricane, crude oil production in the Gulf of Mexico region declined for a short time. EIA data showed that the U.S. crude oil inventory decreased significantly, stimulating the rebound of international crude oil prices. However, Saudi Arabia lowered the official price of crude oil and faced the risk of a second outbreak in the world, resulting in weak market demand and limited increase in international oil prices.

The recent rainfall in Northeast, southwest and other regions has limited the rigid demand for asphalt; the weather in North China, central China and Northwest China is sunny, and the demand for asphalt driven by some projects is relatively stable. Although the market has entered the peak season of demand, due to excessive supply, the market continues to be in a state of oversupply. At the same time, the international oil price rebound is not strong enough, the market bullish confidence support is insufficient, and the downstream stock is cautious.

Last week, the domestic asphalt plant operating rate was 67%, a slight increase of 2% compared with the previous week. The asphalt plant operating rate continued to maintain a high level, and the refinery asphalt supply was sufficient.

SunSirs analysts believe that the rebound in the international crude oil market is limited, and the upward trend of crude oil price is weak. But the peak season has support for China asphalt price, which is expected to rise steadily.

 

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