Mid-September Asphalt Prices Drop in Shandong Region

September 18, News

Since September, the price of asphalt has been fluctuating and declining due to various factors. According to monitoring data, on September 1st, the factory price of #70 heavy traffic asphalt in Shandong, China was 3,680 CNY per ton, and by the 18th, the ex-factory price in Shandong, China had dropped to 3,630 CNY per ton.

Supply pressures persist in northern regions, with social inventories remaining high and market sentiment leaning toward the weaker side. Some major refineries continue to face challenges in shipping their products, while lower-priced resources are still finding relatively smooth sales channels. Meanwhile, the capacity utilization rate for China's heavy-grade asphalt among 77 key enterprises stood at 34.4%, down 0.5% from the previous week. Although units at Dongming Petrochemical, Shandong Jincheng, Qilu Petrochemical, and Sinochem Quanzhou have resumed production this week, overall supply capacity remains constrained. This is partly due to CNOOC Yingkou entering its maintenance period, coupled with ongoing shutdowns at companies like Shandong Shengxing and Jiangsu Xinhai. As a result, after a brief downward trend, the market has gradually stabilized.

As the National Day holiday approaches, short-term demand for asphalt has moderately increased. This week, the total shipment volume of 54 asphalt manufacturing companies in China reached 455,000 tons, a 14.6% increase from the previous week. The increase was particularly noticeable in North China and East China. The stable production of large facilities at Hebei Xinhai and the fulfillment of previous contracts by refineries have significantly boosted shipment volumes. Price reductions have also stimulated the purchasing willingness of traders. Additionally, smooth shipping has collectively contributed to the increase in shipment volume.

Looking at the situation, the recent two-day continuous rebound in international crude oil prices and the demand for stocking up before the National Day holiday have provided some support to the spot market. It is expected that the low-end market may see a slight increase, but the high-end market will still mainly operate under pressure to maintain stability.