SunSirs: The Main Asphalt Prices in Shandong Province Fell in Mid-September

Price trend

Since September, asphalt prices have been fluctuating downward due to a variety of factors. According to data from SunSirs, the ex-factory price of heavy traffic asphalt 70# in Shandong Province was 3,680 RMB/ton on September 1st, and remained at 3,630 RMB/ton as of September 18th.

Analysis review

Supply pressure persisted in northern China, with inventories remaining high and market sentiment weak. Some major refineries were still facing shipping pressure, but transactions for low-priced resources were relatively smooth. The capacity utilization rate of 77 domesticheavy traffic asphalt companies was 34.4%, a 0.5% decrease from the previous month. Although Dongming Petrochemical, Shandong Jincheng, Qilu Petrochemical, and Sinochem Quanzhou plants gradually resumed production this week, overall supply capacity remained constrained due to maintenance at CNOOC Yingkou and the continued suspension of production at companies like Shandong Shengxing and Jiangsu Xinhai. After a brief period of decline, the market had gradually stabilized.

With the National Day holiday approaching, short-term demand for asphalt was rebounding modestly. This week, a sample of 54 domestic asphalt manufacturers shipped a total of 455,000 tons, a 14.6% increase from the previous month. The increase was particularly pronounced in North and East China, with Hebei Xinhai's large-scale production facility maintaining stable production and refineries fulfilling pre-contracted shipments. This significantly increased shipments, lowered prices, and boosted traders' purchasing interest. Furthermore, smooth shipping and delivery operations contributed to the increase in shipments.

Market outlook

From the perspective of SunSirs, the continuous rebound of international crude oil in the past two days and the demand for stocking up before the National Day have supported the spot market. It is expected that the low-priced market may rise slightly, but the high-priced market is still under pressure to maintain stable operation.

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