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SunSirs: International Crude Oil Price Goes Down, China Asphalt Price Moves Down

September 30 2020 10:40:08     SunSirs (Selena)

International crude oil demand is expected to decline and crude oil prices will decline. In the peak season of asphalt market demand, the support for asphalt price is insufficient, and the domestic asphalt price drops slightly. According to the price monitoring data of SunSirs, the asphalt price was reported at 2,325 RMB/ ton on September 25, down 2.82% from the beginning of the month.

Last week, EIA data showed that the US crude oil inventory continued to decline, which was good for the international crude oil price; however, negative news such as OPEC international discount sales of crude oil, the reduction of crude oil price expectations by institutions such as Barclays, the resumption of production of Libya's crude oil, and the aggravation of the epidemic situation in Europe continued to stimulate the international crude oil market. ETI crude oil prices fell 2.59% last week, while Brent crude oil prices fell 2.29%.

Recently, the weather in most areas such as northeast, North China and Northwest China is fine, which is suitable for project start-up. In addition, some terminal projects are speeding up. As a whole, the rigid demand for asphalt has increased steadily. There is still a certain amount of rainfall in East China, South China and southwest China, and the demand for asphalt rigidity has not increased significantly. However, the domestic asphalt supply will be sufficient in 2020. From January to August 2020, the total domestic asphalt production will reach 20.4994 million tons, with a year-on-year increase of 2.071 million tons or 10.85%. The international crude oil price has been under constant pressure. The industry is not optimistic about the late price of asphalt. The downstream companies maintain the rhythm of low price and on-demand procurement, and refineries mostly use price reduction and promotion to remove inventory. The market price of asphalt has been continuously lowered.

According to SunSirs analysts, the international crude oil demand is not expected to be good, the upward trend of crude oil price is weak, and the support for asphalt price in the peak season of traditional asphalt demand is limited, and China asphalt price is expected to decline slightly and stably.

 

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