SunSirs: China Asphalt Market Rose in a Narrow Range

According to the monitoring of SunSirs, the asphalt market price fell first and then rose, and then rose in a narrow range. From January 9 to 13, the average price of asphalt producers in Shandong rose from 3,811 RMB/ton to 3,831 RMB/ton, up 0.52%, up 11.98% month-on-month, and still up 12.77% year-on-year. The rise of international crude oil led to a sharp rise in the price of asphalt futures, which supported the market sentiment to a certain extent, and the enthusiasm for the release of low-cost resources decreased. Sinopec, the main producer, raised the price by 100-130 RMB/ton, driving up the market price.

On the cost side, international crude oil rose in a narrow range. On January 12, international crude oil futures rose. The settlement price of the main contract of WTI crude oil futures in the United States was $78.39/barrel, up $0.98 or 1.3%. The settlement price of the main contract of Brent crude oil futures was $84.03/barrel, up $1.36 or 1.7%. Influenced by the optimistic expectation of China's demand outlook and the unexpected drop in consumer prices in the United States in December, the Federal Reserve's tightening monetary policy slowed down and oil prices gained support. Overall, the international crude oil price has a positive impact on refinery fundamentals, while the asphalt cost is temporarily positive.

On the supply side, the supply of some regions increased this week. The northeast region was supported by low sulfur demand, and the refinery shipments increased, while the Shandong region was supported by winter storage and warehousing and the southern steel demand.

On the demand side, the cold air superimposed with the holiday factors, the demand just slowed down, the overall demand tended to be light, and some of the goods gradually entered the warehouse.

According to the aftermarket forecast, the construction will remain relatively low and the inventory pressure will be limited near the Spring Festival holiday; The cold air superimposed with the holiday factors, the demand just slowed down, and the overall demand tended to be light. SunSirs asphalt analysts expect that the short-term China domestic asphalt market will be dominated by shocks.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.