SunSirs: Crude Oil Price Callbacked, China Domestic Asphalt Price Droped slightly

International crude oil callbacked, the domestic road project was affected by cold weather, the demand of asphalt terminal market was low, and the domestic asphalt price was declining. According to the price monitoring data of SunSirs, the asphalt price on December 25 was 2,470 yuan / ton, which was 0.40% lower than that at the beginning of the week.

In the process of continuous improvement of international crude oil market, it was reported that mutated virus had been found in the UK, and most cities in the UK had implemented strict City closure measures. A number of countries suspended air traffic with the UK, and the demand for crude oil significantly restrained. Last week, international crude oil prices had a correction. Last week, WTI crude oil prices fell 2.05% and Brent crude oil prices fell 1.76%.

Overall, China domestic asphalt market demand fell to a low level. The results show that the temperature in North and central China turns cold, and the demand for terminal asphalt is weak; the terminal projects in South and southwest China are relatively stable, and the rigid demand is released steadily; in East China and Shandong, due to the weather temperature, the road construction projects are limited, and the demand for terminal asphalt drops to a low level; in Northeast and Northwest China, the rigid demand for asphalt basically ends, and the demand for asphalt is weak. Overall, the demand for asphalt in the North has basically ended, while that in the South has remained rigid.

SunSirs analysts believe that when vaccination continues to benefit the crude oil market, it is reported that the new coronavirus mutates in the UK, the demand for crude oil in the international market loses support, and the international oil price begins to callback. In addition, China domestic asphalt market demand has dropped to a low level, and it is expected that the domestic asphalt price will follow the crude oil price callback in China.

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