Recently, the asphalt market has seen a slight upward trend, with a continuous decrease in spot supply in the North China region. There has been a strong upward trend in spot asphalt prices, with offers ranging from 5-20 RMB/ton. According to monitoring data from SunSirs, the ex factory price of heavy-duty asphalt #70 in Shandong Province was 3,580 RMB/ton on May 20th, and as of the 29th, the price was 3,620 RMB/ton, an increase of 40 RMB/ton. Overall, demand is gradually recovering and trading is good.

In terms of supply, as the end of the month approaches, most refineries have completed their monthly plans and are in an intermittent shutdown state. The overall production capacity and operating rate have declined, and the weekly asphalt production has dropped to 480,000 tons. The operating rate of 77 heavy-duty asphalt enterprises is less than 28%, which is at a low level during the same period. It is expected that the planned production for June will be 2.3 million tons, with a significant increase.

From a demand perspective, the overall asphalt market is still gradually recovering, but the overall recovery situation is not as expected. From a seasonal perspective, the temperature in the north is warming up, and the demand level is expected to continue to rise until the third quarter. This is expected to be a strong support for the steady improvement of asphalt in the later period. However, with the arrival of the rainy season in the south, construction is limited, and overall demand is lower than expected.

From a cost perspective, crude oil prices are maintaining a fluctuating and slightly declining trend, and there is still a lack of obvious upward driving factors for crude oil in the future. In the short term, crude oil will continue to operate weakly, which will also exert some pressure on the trend of asphalt.

From the perspective of SunSirs, the spot circulation at the end of the month has decreased, and asphalt is expected to maintain its upward trend. It is expected that the total output of asphalt in June will be 2.3 million tons, and the supply will have a significant upward trend. The southern rainy season will suppress market demand, and the peak season demand in North China is approaching. On the other hand, the improvement in consumption is insufficient, and the short-term outlook is relatively optimistic. Asphalt will also perform strongly in the oil industry in the short term, and the overall market space is limited.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.