SunSirs: China Domestic Asphalt Price was Stable in Eary October

In the early ten days of October, the international crude oil rose, but China domestic asphalt market supply was sufficient, and the domestic asphalt price was stable. According to the price monitoring data of SunSirs, the asphalt price was reported at 2,291 RMB/ ton on October 11, down 0.76% from the beginning of the month.

More than 90% of crude oil production capacity has been stagnated due to the hurricane in the Gulf of Mexico; Norwegian oil workers have gone on strike; Saudi Arabia has raised the official price of Arab light crude oil; and the EIA report at the beginning of the month showed that crude oil stocks fell by 1.98 million barrels last week. The positive news stimulated the rise of international oil prices. With the end of Norway's oil workers' strike and the increase of OPEC's crude oil exports in September, the EIA reported on October 7 that the US crude oil inventory increased by 501,000 barrels, to 492.9 million barrels, which was far more than expected. International oil prices fell back. On the whole, international crude oil prices rose first and then fell slightly. WTI crude oil prices rose by 4.86% in the first ten days of October, while Brent crude oil prices fell by 4.69% this week.

At present, the operating rate of the refineries remains high and the market supply is still abundant. In North China, the overall operating rate rose, higher than the same period in previous years. Inventory in South China, East China, Shandong and other places has decreased, but the overall supply of asphalt market is still very sufficient. In recent days, the rainfall in most areas of China has decreased significantly, and the demand for asphalt rigidity has been released steadily, but the demand for asphalt rigidity in Southwest China is relatively weak. The temperature in Northeast and Northwest China has further decreased, and the continuous rush of terminal projects is expected to support the continuous release of asphalt demand; the projects in North China and central China have entered the centralized construction period, and the demand for asphalt may continue to be optimistic; the demand for asphalt in East China, Southwest China and South China is mainly general. On the whole, the sufficient supply of asphalt market hinders the upward trend of asphalt price.

SunSirs analysts believe that the blockade of some regions caused by the second epidemic in Europe is the biggest negative for the weak adjustment of the oil market. The international crude oil market will continue to be under pressure, and the asphalt terminal will enter the rush period at the end of the peak season, and the rigid demand for asphalt is supported. It is expected that China domestic asphalt price will rise steadily.

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