According to the monitoring by the Business Agency, the domestic asphalt market was weak and volatile in March. From March 1st to 30th, the average price of asphalt producers in Shandong fell from 3895 yuan/ton to 3710 yuan/ton, a decrease of 4.73%, and the price rose 24.53% year-on-year.
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At the beginning of this month, supported by the relatively strong crude oil, the asphalt market quotation rose. The overall operation of the refinery is relatively stable, and the modification processing has warmed up, driving the upward atmosphere of the asphalt market. In the first ten days of this month, the refinery maintained a state of de-stocking, but the recovery of terminal demand was relatively slow, with the asphalt market rising and falling. In the middle of June, international crude oil fell sharply, and cost support weakened, driving down the price of asphalt market one after another. In the second half of this month, the sharp decline in crude oil and the slow recovery of terminal demand led to a significant decline in the domestic asphalt market price.
On the cost side, the international crude oil market in March fell first and then rose, but overall it still fell. As of March 29, international crude oil futures fell slightly. The settlement price of the main contract for US WTI crude oil futures was US $72.97 per barrel, a decrease of US $0.23 or 0.3%. Brent crude oil futures rose, with the main contract closing at $77.59 per barrel, a decrease of $0.55 or 0.7%. The domestic oil industry chain product market was affected by weak and volatile market conditions.
On the supply side, the comprehensive operating rate of the asphalt industry has increased on a month-on-month basis, with negative impacts on the supply side.
On the demand side, there may be precipitation weather in some areas of the south that may hinder terminal construction, while the weather in the north is moderate. The demand for roads is still tepid and tepid, and sporadic and low-priced goods are mainly needed.
In the future, it is predicted that international crude oil will maintain a volatile trend, with limited support for asphalt cost. From the supply side, the supply of asphalt is gradually increasing, while from the demand side, the demand for roads is still tepid. Asphalt analysts from the Business Agency predict that the short-term domestic asphalt market will be dominated by weak consolidation.
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