Cost Support: Shandong Asphalt Market Rises in July

August 18th, news:

Asphalt prices on the board have been fluctuating within a narrow range, with spot prices remaining stable in many areas. August production is expected to decline month-over-month, but attention should be paid to the production situation of previously overproducing refineries. There is a rush to complete projects in the northwest and northeast regions, while demand in the south is poor due to rainfall. The cumulative year-on-year increase in shipments from sample refineries has risen by 1 percentage point. Overall, the commercial inventory level is relatively manageable. Recently, under weak cost pressure, BU is under pressure, but cracking margins still have support.

From a fundamental perspective of asphalt, the overall situation of weak supply and demand may continue. Financial contradictions and weather conditions such as rainfall affect the release of terminal demand. The supply side may remain stable, with operating rates at a moderate level in recent years. However, inventories are relatively low, and there is no signal of inventory accumulation, so the short-term market pressure is not significant, and asphalt prices are expected to remain stable.