Price Trend

According to the price monitoring of business associations, the price of asphalt market rose in July. At the end of the month, the price of asphalt was 3596 yuan/ton, which was 2.86% higher than that of 3496 yuan/ton at the beginning of the month.

II. Analysis of Influencing Factors

Products: The demand of asphalt market improved in July, and the international oil price shocks warmed up. The price of asphalt market showed an upward trend.

Industry chain: In July, tense U.S. -Iraq relations, the Gulf of Mexico storm, worries about oversupply and other air news intertwined. The international crude oil market rises first, then falls and then rises, showing a general trend of shock and warming, supporting the price of asphalt market.

Asphalt market: After the strong price increase in mid-July in Northeast China, the price remained stable, and the traders mainly relied on the digestive inventory. The sales orders of asphalt in Shandong continue to be booming, and the refinery’s pick-up volume continues to be high. At the same time, some refineries stop production and reduce production to support the price of asphalt at the supply side. At the end of the rainy season in East China, following the pace of Shandong Province, the demand of traders for hoarding goods and the real demand of the terminal jointly led to hot spot transactions, which promoted the price of domestic asphalt market to rise.

3. Future Market Forecast

Lu Xingjun, an asphalt analyst at the business association, believes that the international crude oil market is heading for a better position, while the domestic asphalt market is entering a peak season, and the price of asphalt is expected to continue to rise in August.