Price trend:

The asphalt market saw limited fluctuations recently. According to data monitored by SunSirs, the ex-factory price of heavy-grade asphalt #70 in Shandong was 3,010 RMB/ton on November 14, and 3,030-3,040 RMB/ton on November 21, showing a slight increase within the week.

Market Analysis

From a national supply perspective, the operating rate of asphalt plants had declined, with many companies shutting down or switching production. Among them, Shandong Shengxing switched to producing residual oil. In the coming weeks, Qilu Petrochemical and Sinopec's main refineries may resume production again, which will increase the supply pressure of asphalt in Shandong.

On the demand side, downstream construction in the southern region still had demand. In Shandong, projects were nearing completion after the weather improves, and low-priced goods were the main source of supply. In the northwest, as temperatures dropped and projects were nearing completion, demand was somewhat hampered. In the northeast, due to the narrowing construction window and price reductions by traders, the price advantage of social inventory resources had become apparent. Coupled with the support of rush-to-complete demand, the destocking process had accelerated.

Market outlook

According to SunSirs, the fundamentals of asphalt had not changed much. Demand was gradually shrinking, oil prices were generally weak, and downstream restocking enthusiasm was suppressed. As of November 21, asphalt winter storage contracts had not yet entered the market, and asphalt is expected to fluctuate slightly with a weak trend next week.

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