SunSirs: The Asphalt Market Was Sorted out After Rising

Price trend

According to the Commodity Market Analysis System of SunSirs, the asphalt market was sorted out after the market price rose. From April 7th to 14th, the price of asphalt in Shandong region increased from 3,822 RMB/ton to 3,839 RMB/ton, an increase of 0.45%, a month on month decrease of 1.61%, and a year-on-year decrease of 3.22%. Affected by the continuous rise in crude oil, cost support was strengthened, driving prices in various regions to rise slightly. The rigid demand just started to recover in the market, and some projects started construction, but the overall situation was still limited.

Analysis review

On the cost side, international crude oil continued to operate at high levels, cost support was strong and market attitude was positive. On April 14th, the benchmark price of WTI crude oil of SunSirs was 83.26 US dollars per barrel, an increase of 11.95% compared to the beginning of this month (74.37 US dollars per barrel). The cost side was still favorable for the domestic oil industry chain market.

On the supply side, Changqing Petrochemical intermittently shut down production, Qilu Petrochemical and Dongming Petrochemical switched production, Yangzi Petrochemical and Ningbo Bohui intermittently shut down production. The comprehensive operating rate of the asphalt industry had decreased compared to the previous month, with a positive impact on the supply side.

On the demand side, affected by bearish factors such as rainfall and weather, terminal demand was lukewarm and tepid, and traders were relatively cautious in picking up goods; With the improvement of weather and the increase in project construction, market demand was slowly improving.

Market outlook

The overall operating rate remained high, and resources were still relatively abundant. The rigid demand just recovered, and some projects had started construction, but the overall situation was still limited. SunSirs asphalt analysts predict that in the short term, the domestic asphalt market will mainly fluctuate and consolidate.

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