SunSirs: Crude Oil Price Rises slightly, China Domestic Asphalt Price Rises

International crude oil continued to rise slightly, but the weather turned cold, the demand for asphalt terminal market weakened, and domestic asphalt prices went up in a limited range. According to the price monitoring data of SunSirs, the asphalt price was reported at 2,362 RMB/ ton on December 4, 2.83% higher than that at the beginning of the week.

The United Kingdom announced the start of vaccination of the new crown vaccine, and the progress of the vaccine was good for international oil prices; the OPEC meeting was postponed, and the United Arab Emirates and other countries had different opinions on the postponement and reduction of production. The international crude oil market is intertwined with a small rise in international oil prices this week. WTI crude oil prices rose 1.60% and Brent crude oil prices rose 2.95%.

On the whole, China domestic asphalt market demand has steadily declined. In East China and central China, the temperature turns cold, and the terminal asphalt demand weakens; in South China and southwest China, terminal projects are relatively stable, and rigid demand is released steadily; in North China and Shandong, weather warning results in periodic shutdown of the project, and the asphalt demand decreases gradually compared with the previous period; the rigid demand for asphalt in Northeast and Northwest China is basically ended, and the asphalt demand is weak.

Domestic asphalt supply is at a high level, with a cumulative output of 26.95 million tons from January to October, an increase of 13% over the same period of last year.

According to SunSirs analysts, the national oil price has risen to a periodic high, and it is insufficient to continue to take action. In addition, the weather turns cold, and the terminal demand for asphalt is weakening. It is expected that the domestic asphalt price will decline steadily.

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